# Stochastics

#### Description <a href="#description_103" id="description_103"></a>

The stochastic indicator was developed by George C. Lane in the 1950s. It belongs to the class “momentum indicators” (oscillators) and represents the current closing price in relation to a high or low area over a defined number of periods. The stochastic indicator is based on the observation that in an uptrend, the closing price is close to the daily high, while in a downtrend, the closing price is closer to the daily low. The stochastic indicator consists of two exponential Average Lines (%K and %D), both of which range between 0 and 100. There are two types of stochastic: the classic slow stochastic and the fast stochastic.

**Fast stochastic:** The %D line is the smoothing average of the %K line

**Slow stochastic:** The %D is the basis on which the smoothing average is calculated. The slow stochastic smoothes the fast stochastic, thus stabilizing the oscillator.

#### Interpretation <a href="#interpretation_52" id="interpretation_52"></a>

The closing prices found in the upper area imply an accumulation (buying pressure); the lower area represents selling pressure. The stochastic indicator is a classic oscillator, and is primarily used in sideways markets in order to determine the reversal points. Days with a stable trend will not provide the indicator with any relevant or valuable results/information.

#### Further information <a href="#further-information_40" id="further-information_40"></a>

VTAD: <http://vtadwiki.vtad.de/index.php/Stochastik>

#### Usage <a href="#usage_99" id="usage_99"></a>

```csharp
Stochastics(int periodD, int periodK, int smooth)
Stochastics(IDataSeries inSeries, int periodD, int periodK, int smooth)

//For the %D line
Stochastics(int periodD, int periodK, int smooth).D[int barsAgo]
Stochastics(IDataSeries inSeries, int periodD, int periodK, int smooth).D[int barsAgo]

//For the %K line
Stochastics(int periodD, int periodK, int smooth).K[int barsAgo]
Stochastics(IDataSeries inSeries, int periodD, int periodK, int smooth).K[int barsAgo]
```

#### Return value <a href="#return-value_97" id="return-value_97"></a>

**double**

When using this method with an index (e.g. **Stochastics**(7,14,3)\[**int** barsAgo] ), the value of the indicator will be issued for the referenced bar.

#### Parameters <a href="#parameters_90" id="parameters_90"></a>

inSeries Input data series for the indicator

periodD Number of periods to be used for the %K smoothing

periodK Number of bars included in the %K calculation

smooth Number of periods for the smoothing of %D

#### Visualization <a href="#visualization_94" id="visualization_94"></a>

![Stochastics](https://agenatrader.github.io/AgenaIndicator-documentation/media/Stochastics.jpg)

#### Example <a href="#example_94" id="example_94"></a>

```csharp
//Output for the %K line
Print("The stochastic line %K is currently at: " + Stochastics(3, 14, 7).K[0]);

//Output for the %D line
Print("The stochastic line %D is currently at: " + Stochastics(3, 14, 7).D[0]);
```