Modified Stochastic

Fast and slow stochastics employ a three period modified moving average to calculate %D lines.

The modified stochastic study lets you use alternative periods and moving average calculations in stochastics. The formula for modified stochastics is identical to the formula used in stochastics; however, you may adjust the number of periods and the moving average calculation through the Modified Stochastics parameters menu.

Parameters

Parameter

Function

Avg. Type

Sets the type of calculation for the moving average:

Option	Function
Exponential	Exponential moving average.
Hamming	Hamming moving average.
Modified	Modified moving average.
Simple	Simple moving average.
Weighted	Weighted moving average.

Color

Default color for the %K Line is green. Default color for the %D is yellow. To change the color, click on the color button:

Then choose the color you want from the Color Menu.

Graph

Sets the drawing method for the study.

Option	Function
Bars	Renders the study as bars.
Dots	Renders the study as dots.
Dotted	Renders the study as dots.
Histogram	Renders the study as a histogram drawn from 0.
Line (Default)	Renders the study as a line.
Not Drawn	The study is not rendered.

Line Style

Sets the rendering technique of the graph parameter (if it is set to Line).

Option	Function
Dash-Dot	--l-l-l-l-l-l-
Dash-Dot-Dot	----ll----ll----
Dashed	- - - - - - - - - - - - - - -
Dotted	llllllllll
Solid (Default)	-------------------------

Line Width

Sets the tickness of the study line.

Option	Function
1 pixel (Default)
2 pixels
3 pixels
4 pixels
5 pixels

Period

Default for %K is 3

Default for %D is 3

Default for Stochastic 14

Price

The price on which the study is calculated:

Option	Function
Close	Closing price (Default).
First Study	Calculates the study using the values of the first study in the window.
H, L Midpt	Calculates the study on the mid-point of the high and low.
H, L, C Avg.	Calculates the study on the average of the High, Low, and Close.
High	High price.
Low	Low price.
Open	Opening price.
Tick Average	Calculates the study on the average of ticks in the period.

Notes

See, notes on the Slow Stochastic.

see, George C. Lane, "Lane Stochastics," in Technical Analysis of Stocks and Commodities, May/June, 1984; see also, Murphy, John J., Technical Analysis of the Futures Markets, A Comprehensive Guide to Trading Methods and Applications, New York: New York Institute of Finance, A Prentice-Hall Company, 1986, p. 304-309.