stochastic cross of %D crossing %DS

shammyx1

Mark thanks for the brilliant explanation of Stochastics. I am confused about something though. I was using Stochastics on Bloomberg and there was a %D and %DS, so from your explanation that would be the
Signal line of the original %K and %D...and the %DS would be the signal of that signal i guess....

Well my question is if i want to get a Weekly cross up of the %D crossing up through the %DS how would i do that. Why does the following formula not work?


and [weekly Slow Stoch %D(5) x weekly and [Slow Stoch %D(2)]





I have attached chart from Bloomberg. In the boxed yellow area you can see %D and %DS that i want to get cross ups and downs.

Many thanks in advance
Mark

markd

and [weekly Slow Stoch %D(5) x weekly and [Slow Stoch %D(2)]

I'm guessing DS might be "D smoothed" and that might be Full Stochastics on Stockcharts. Different sites do things differently. You would have to read the Bloomberg documentation to see what they are doing.

On Stockcharts, Full Stoch takes 3 parameters, explained here:

https://school.stockcharts.com/doku.php?id=technical_indicators:stochastic_oscillator_fast_slow_and_full

I don't think you can chart Slow D and Full D as an overlay on Stockcharts. You could scan for crossovers, since both use the same scale, but I don't know if the results are meaningful. If you did, it would look like this:

and [weekly Slow Stoch %D(12,6) x weekly Full Stoch %D(12,6,9)]

Substitute your own parameters. Verifying the results would be a chore. You would need to put both indicators on a chart and compare values.

shammyx1

Mark, Thank you so much for your valuable feedback and time to answer me. That worked great!

shammyx1

So if i want to catch a cross at around 20
I tried this

//and [weekly Slow Stoch %K(6,5) = 20.0]
//and [weekly Slow Stoch %D(5,2) = 20.0]

but i get waaaay too many results.
How can i catch the ones that cross at 20 or below on those parameters?

markd

I'm surprised you get many results using the "=" operator.

But if you want a cross above 20, use the "x" operator instead.

The other thing would be to limit your universe (the stocks you want to look at) to things you would actually consider trading, if you haven't already done that. The easy way is to specify a group, like [group is sp500]. Or, you could specify an exchange, or limit price (e.g. price > 20), or volume (sma(21, volume) > 1000000) or market cap (market cap > 1000), or specify a sector or specify an industry.

lmkwin

//and [weekly Slow Stoch %K(6,5) = 20.0]
//and [weekly Slow Stoch %D(5,2) = 20.0]


With the equals condition on two or more technical indicators, I'm surprised you get ANY results.

Of course, you have two backslashes in front of them. This makes the scan engine ignore the statements. What happens if you remove the backslashes?

shammyx1

Sorry to take so long to reply and thank you both for your feedback.

so is the following statement correct?

and [weekly Slow Stoch %D(5,2) x weekly Full Stoch %D(6,5,5)]

markd

It is syntactically correct. But I don't know if the results will be meaningful. Looking at just one example, AEP, it appears not to fit the criteria (%D slow does not cross above %D full from last week to this week).

[group is sp500]
and [weekly Slow Stoch %D(5,2) x weekly Full Stoch %D(6,5,5)]

It's possible the scan engine logic is not designed to deal with comparing values of unlike indicators, even though they use the same scale.

You could write out the comparison in full instead of using the "x" operator, and see if it works that way - 1 week ago Slow D < 1 week ago Full D and Slow D > Full D.