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Craig_S
Posted : Monday, April 18, 2005 4:05:47 PM


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Joined: 10/1/2004
Posts: 18,819

How stochastics is contructed and what it reveals about price








If you prefer, you can download the video and watch it offline. Choose the Save option and save it to your hard drive. Extract the files to a location on your hard drive and double click on the .html file to launch the video. You must extract the files to your hard drive. You cannot play the video from the .zip file.
stochastic stochastics overbought oversold 80 20 crossing


If you would like to view the video offline, click here and select the Save option.

- Craig
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To view this video you must have Macromedia Flash Player and Microsoft Internet Explorer 5+
Craig_S
Posted : Monday, April 25, 2005 2:06:12 PM


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Joined: 10/1/2004
Posts: 18,819
Here are some PCFs examples for Stochastics. These are all for a stochastics of 20,10,5.

Stochastics today
STOC20.10

Add this PCF to an EasyScan and set the desired value range.

Stochastics crossing down through the SD

((STOC20.10<AVG(STOC20.10,5) )AND (STOC20.10.1>AVG(STOC20.10.1,5)))

Stochastics crossing up through the SD

((STOC20.10>AVG(STOC20.10,5))AND(STOC20.10.1<AVG(STOC20.10.1,5)))


- Craig
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CapGain
Posted : Saturday, April 30, 2005 10:20:12 AM
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Joined: 10/7/2004
Posts: 111
Great job. So far, I would say you deerve an A+ on the MACD and stochastics videos.

Any plans for future videos. If possible, I'd like to see a video on the ADX indicator.

P.S. TeleChart 2005 is a great product. I think some of your competitors would be well advised to see how the Worden's treat their customers.

Doug_H
Posted : Saturday, April 30, 2005 10:23:47 AM


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Joined: 10/1/2004
Posts: 4,308
CapGain:

Glad you're enjoying Craig's series on understanding the indicators. There are already two videos on the ADX indicator...not actually part of Craig's series, but helpful just the same. Here are the links:

Average Directional Index (ADX)
Sorting by the ADX indicator

- Doug
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CapGain
Posted : Saturday, April 30, 2005 12:18:55 PM
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Joined: 10/7/2004
Posts: 111
Doug -

I appreciate your giving me those sites. I had seen those videos a while ago and forgot they existed.

I would still like to see Craig do one however, as his video's deconstruct the indicators and let me focus on exactly what each element of the indicator represents.
Sometimes, a return to boot camp is a good thing.

Doug_H
Posted : Saturday, April 30, 2005 12:27:30 PM


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Joined: 10/1/2004
Posts: 4,308
I'll make sure Craig sees this. Not sure which indicator is next on his list.

- Doug
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Craig_S
Posted : Saturday, April 30, 2005 12:54:29 PM


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Posts: 18,819
Consider ADX added to the list. A part II Stochastic video is in the works now. Wilder's RSI is slated as the next video after that. I don't see an issue with ADX following RSI.

I almost have the video script finished for the second Stochastic video and hope to release the video next week before Doug and I head to Las Vegas for the Money Show.

- Craig
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CapGain
Posted : Saturday, April 30, 2005 1:48:01 PM
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Joined: 10/7/2004
Posts: 111
Thanks guys. I'm looking forward to the next stochastic video as well as Wilder RSI.
chandruchandnani
Posted : Sunday, May 01, 2005 6:31:27 PM
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Joined: 10/29/2004
Posts: 5
Hi Doug,
I tried to make pcf copying your two pcf for stochastics crossing down SD line and up line. I get syntax error while testing the formulas. Can please let me know what am doing wrong? Thanks
chandru
Craig_S
Posted : Sunday, May 01, 2005 8:29:02 PM


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Joined: 10/1/2004
Posts: 18,819
You did nothing wrong. There was a typo in the formulas above. I corrected them and they should work fine for you now. Thanks for bringing it to my attention!

- Craig
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georgeu2000
Posted : Saturday, May 14, 2005 11:23:41 AM
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Joined: 12/16/2004
Posts: 5
Awesome! This info is exactly what I was looking for!
Craig_S
Posted : Saturday, May 14, 2005 3:06:31 PM


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Glad to hear it!

- Craig
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CapGain
Posted : Wednesday, May 25, 2005 12:30:00 PM
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Joined: 10/7/2004
Posts: 111
Craig -

You stated on April 30th that you would have the Stochastics Part II video available in early May. What's happening with that? I check every day for the video but don't see anything.

Thanks

Craig_S
Posted : Wednesday, May 25, 2005 12:51:54 PM


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Posts: 18,819
Got pushed back a bit... It is coming and I hope worth the wait. I don't see it getting done this week but I will try to get it done for next week.

I appreciate your patience.

- Craig
Here to Help!
CapGain
Posted : Wednesday, May 25, 2005 3:42:17 PM
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Thanks. I'm looking forward to it.

jimlou6
Posted : Friday, May 27, 2005 12:24:39 PM
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Joined: 3/8/2005
Posts: 10
Craig,

Great video demo. the Stoc. I try to modify the PDF from your 20,10,5 to 10,3,10. The following show modification I made.

Stochastics crossing down through the SD

((STOC10.3<AVG(STOC10.3,10) )AND (STOC10.3.1>AVG(STOC10.3.1,10)))b]

Stochastics crossing up through the SD

((STOC10.3>AVG(STOC10.3,10))AND(STOC10.3.1<AVG(STOC10.3.1,5)))

Is this modification correct?

Thanks,

Doug_H
Posted : Friday, May 27, 2005 1:10:53 PM


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Posts: 4,308
Unless my eyes are playing tricks on me, your adaptation looks perfect.

- Doug
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CapGain
Posted : Monday, June 20, 2005 9:15:48 AM
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Posts: 111
QUOTE (Craig_S)
Got pushed back a bit... It is coming and I hope worth the wait. I don't see it getting done this week but I will try to get it done for next week.

I appreciate your patience.


Is this project still pending, or has it been scrapped?

Craig_S
Posted : Monday, June 20, 2005 9:44:26 AM


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Joined: 10/1/2004
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I may scrap it. I am not sure there is enough material to justify a video. I thought of covering different conditions that cause Stochastics to move. I will likely still make the video, it may not be the next "Understanding" video I make. I've started work on the "Understanding RSI" video and think it will have a broader appeal.

I appreciate your patience!

- Craig
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markacz
Posted : Saturday, June 25, 2005 3:26:47 PM
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Joined: 5/4/2005
Posts: 74
Craig:
In your 4/25/05 post pertaining to stochastics, you displayed some PCF's, the first of which was "stochastics crossing down thru SD". The PCF (equation) ends with "b]". What is the purpose of those two symbols?
tx, markacz
Doug_H
Posted : Saturday, June 25, 2005 4:17:05 PM


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Ignore the b]. Somehow, when Craig bolded the PCF for easier viewing, part of the code to make the PFC bold got tagged on to the end. It's usually invisible...it's not related to the PCF at all. Sorry for the confusion.

In the meantime, I edited out the b] at the end, so that others wouldn't be confused by it as you were. Thanks for bringing it to our attention.

- Doug
Teaching Online!
robwiley
Posted : Thursday, July 14, 2005 8:41:01 PM
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Joined: 3/9/2005
Posts: 71
I used this formula from the thread to locate down croossing events and it works good.
Now my need is to find cross-down events when they are above the 80% range. Can this be created?
((STOC20.10<AVG(STOC20.10,5) )AND (STOC20.10.1>AVG(STOC20.10.1,5)))
Thanks,
Rob
Bruce_L
Posted : Thursday, July 14, 2005 8:49:11 PM


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Joined: 10/7/2004
Posts: 60,672
robwiley,
Use the formula right above the one you already copied in the same EasyScan.

QUOTE (Craig_S)
Stochastics today
STOC20.10

Add this PCF to an EasyScan and set the desired value range.


In this case the desired value range would be 80 to Max.

-Bruce
Personal Criteria Formulas
TC2000 Support Articles
robwiley
Posted : Thursday, July 14, 2005 10:12:58 PM
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Posts: 71
A bit more help needed. I do not follow how or where to insert STOC20.10 into the PCF below as you suggested. My attempts have not worked.

((STOC20.10<AVG(STOC20.10,5))AND (STOC20.10.1>AVG(STOC20.10.1,5))) is the original PCF.

The values that I will use eventually are 14,5,3.

The desired results are to find a crossdown that is in the 80% range.

Also, I click on "help", then select "telechart help topics" in TC2005 chart window when I am off line and it gives me a notepad window with programming text in it rather then taking me into the help area.
Thanks,
Rob


Craig_S
Posted : Thursday, July 14, 2005 10:20:05 PM


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Joined: 10/1/2004
Posts: 18,819
Here is the template for crossing down provided
((STOC20.10<AVG(STOC20.10,5))AND (STOC20.10.1>AVG(STOC20.10.1,5)))
It uses a Stoc of 20,10,5. You are using 14,5,3

Replace the 20's with 14
Replace the 10's with 5
Replace the 5's with 3

Then create a new PCF (a second one) called:

My Stoc Today
STOC14.5

Add both PCFs to an EasyScan. Set the VALUE range of STOC14.5 to 80 to MAX.

The first PCF (once you replace your values in) will find the crossing down. The second PCF (once you set the value range) will put the Stoc today above 80....

Here are some videos you should check out

How to create a Personal Criteria Forumula (PCF)

Using EasyScan to find stocks that meet your own criteria

- Craig
Here to Help!
CapGain
Posted : Saturday, July 16, 2005 10:13:44 AM
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Joined: 10/7/2004
Posts: 111
How come you guys aren't making any new videos? What happened to the Understanding RSI video?

I've found the videos to be very helpful. I hope you haven't abandoned them.

Thanks

Doug_H
Posted : Saturday, July 16, 2005 10:24:39 AM


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Joined: 10/1/2004
Posts: 4,308
They haven't been abandoned at all. RSI is in review, and others will be made along the way. Both Craig and I have been busy on the boards, and we are both presenting at the Trader's Expo in Chicago this week.

- Doug
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Craig_S
Posted : Saturday, July 16, 2005 10:38:02 AM


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Posts: 18,819
CapGain,

I love that you are such a fan of our videos. I also appreciate your patience. The RSI video should be completed once I get back from the Chicago Traders Expo. I've been playing with several methods of making RSI accessible despite its intimidating formula.

Stay tuned!

- Craig
Here to Help!
CapGain
Posted : Tuesday, October 25, 2005 4:21:57 PM
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Joined: 10/7/2004
Posts: 111
QUOTE (Craig_S)
CapGain,

I love that you are such a fan of our videos. I also appreciate your patience. The RSI video should be completed once I get back from the Chicago Traders Expo. I've been playing with several methods of making RSI accessible despite its intimidating formula.

Stay tuned!


What ever happened to this? Are you guys out of the video producing business?
GameOver22
Posted : Saturday, October 29, 2005 7:27:05 AM
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Joined: 10/12/2005
Posts: 90
Super video.

I need to know though, what does "SK" and "SD" stand for?

Matt
Doug_H
Posted : Saturday, October 29, 2005 9:39:05 AM


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Joined: 10/1/2004
Posts: 4,308
The SK is a smoothed version of the raw Stochastics line. The SD is a moving average of the SK.

In TeleChart, the line you see for Stochastics is actually the SK. The raw Stochastics line is usually quite volatile, which is why you normally put some smoothing period in as the SK parameter. If you wanted to see the raw Stochastics line, just make the SK period 1.

- Doug
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GameOver22
Posted : Saturday, October 29, 2005 10:18:03 AM
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Joined: 10/12/2005
Posts: 90
Thanks Doug, but what do the two letters for each actually stand for?

Matt
Doug_H
Posted : Saturday, October 29, 2005 10:26:52 AM


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I have no idea. I know that they can also be referred to as the %K and %D lines. Perhaps if you Google Stochastics, you'll find something there.

- Doug
Teaching Online!
whitelinerider
Posted : Saturday, November 12, 2005 12:40:52 AM
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Joined: 3/9/2005
Posts: 15
Hello again,, Another great video. Which creates more questions. If you have2 moving averages on a price graph, and a macd in the middle, and stochastics in the bottom, is it correct to use the same periods in each. Otherwise how can you compare. Also in stochastics, if you are looking for short term changes ( or rolling stocks) wouldn't you want the SK line to be a low number so as not to mask a change? or are there better indicators for this type of play.. thanks
Craig_S
Posted : Saturday, November 12, 2005 6:33:21 AM


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Joined: 10/1/2004
Posts: 18,819
Keep in mind that the MACD along with 2 averages of the same periods will show you the same information graphically displayed differently. You will need to decide if this is what you want or not. Be sure to watch this video to understand the MA and MACD relationship

Understanding MACD

Per you stochastics question:

We trainers cannot really say if one indicator is better/worse for a person's trading style or personality. Be sure to check out this video again so you can understand what stochastics is doing and

- Craig
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gzweifler
Posted : Saturday, January 07, 2006 10:21:10 AM
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Joined: 10/20/2005
Posts: 9
Craig,

I enjoyd your video. I was looking at your PF suggestins. What is SD?
Craig_S
Posted : Saturday, January 07, 2006 10:26:26 AM


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Joined: 10/1/2004
Posts: 18,819
Take a peek at the video again (when you get the chance). The SD is the moving average of the Stochastics.

- Craig
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barbler
Posted : Sunday, March 05, 2006 9:47:48 AM
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Joined: 2/22/2006
Posts: 29
re: the understanding stochastics video...why when you changed the SK period to 4, (syk example) why does the indicator actually go from being overbought above 80 to now being under the 80 line. i guess i don't understand what the smoothing line, SK period, does to do that.

thank you.
barbara
Craig_S
Posted : Sunday, March 05, 2006 11:38:15 AM


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Joined: 10/1/2004
Posts: 18,819
The best way to understand how the smoothing works is to look at the indicator with an SK of 1 then change it to 2 then 3 etc. You will showly see it smooth out. If the Stochastics is barely above 80 for the first time today but was under for the previous 5 days you will see:

SK today: 81
1-day ago: 75
2-days ago: 70

SK 1
Unsmoothed value today is 81 so the Stochastic will return 81.

SK 3
This smoother average of the last three SKs (81+75+70)/3 which returns a value of 75.33

Does that help?

- Craig
Here to Help!
Deion
Posted : Monday, March 13, 2006 10:28:21 PM
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Joined: 2/19/2006
Posts: 89
I just watched the above video and decided to experimet with a couple of things. I realize that since I was just exposed to Stochastics that I need to do some further research on it. Can I just get an idea on who to do a PCF for a Stochastic closing up thru 70?

Thank You
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