Stochastic %D
The %D line of the stochastic oscillator on its own: a moving average of where the close sits within the recent high-low range, from 0 to 100.
What you see
One line in its own pane plus two horizontal reference lines at 80 and 20. The pane scales to the lowest and highest %D of the visible candles, so the 80 and 20 lines move with the scale and can lie outside the pane. Green and red lines mark divergences between price and %D.
How it is calculated
%K = 100 × (close − LL) / (HH − LL), where HH and LL are the highest high and lowest low of the lastPeriod %Kcandles, the current one included. If HH equals LL, %K is 0.- Smoothed %K: simple average of %K over
Period Smoothingcandles (1 = no smoothing). %D: simple average of the smoothed %K overPeriod %Dcandles.
With the defaults, %D is the 3-candle average of a 9-candle %K. Divergences compare %D with the close, using Period %K as the swing window and the same rules as the RSI.
How to read it
- Above 80 the close has been near the top of its recent range (overbought), below 20 near the bottom (oversold). In trends it can stay there.
- %D is smoother than %K, so it turns later but with fewer false turns. To see %K and %D together, use the Stochastic.
- The classic signals are turns back out of the 80 and 20 zones, and divergences.
Using it in strategies
Output: value (%D, 0 to 100). In the Trade Setup, "Against" with center 50 and x −30 allows longs only at 20 or lower and shorts only at 80 or higher; "Compare" checks a level. In WickScript the built-in stoch(length, smoothK, smoothD) returns .k and .d, so stoch(9, 1, 3).d is this line; or use use indicator "StochD" with period 9, periodD 3 as sd and read sd.value.
Settings
Open the settings with the slider icon next to the indicator (Indicators, F3). Numeric settings can be swept as Step 1 / Step 2 parameters when you run a strategy.
Inputs
| Setting | Type | Default | Description |
|---|---|---|---|
| Period %K | Number | 9 | Candles for the high-low range of %K. Also the swing window for divergence detection. (min 1) |
| Period %D | Number | 3 | Candles in the simple average that turns the smoothed %K into %D. (min 1) |
| Period Smoothing | Number | 1 | Candles in the simple average applied to %K before %D is calculated (1 = raw %K). (min 1) |
| Height | Number | 70 | Height of the pane in pixels. (min 10) |
| Look Back Range | Number | 2 | Candles after a swing point that are checked before the swing counts for a divergence. Higher values give fewer, later divergences. (min 1) |
Styles
| Setting | Type | Default | Description |
|---|---|---|---|
| Line Color | Color | #0f6347 | |
| Line Color overbought | Color | #630F0F | Color of the reference line at 80. |
| Line Color Oversold | Color | #210F63 | Color of the reference line at 20. |
Outputs
These values can be used in Trade Setup triggers, filters and exits (see Trade Setup) and in WickScript.
| Output | In WickScript | Description |
|---|---|---|
| value | value |
Use in WickScript
use indicator creates this indicator inside a script, with settings by their ID. Each output is a field of the name after as. See WickScript indicators.
wickscript 1
indicator "Stochastic %D from the list" in pane
use indicator "StochD" with period 9 as myStochd
show myStochd.value as line "value"