Question:
What is stochastic chart?
FC
2006-10-12 22:42:01 UTC
What data is required to plot this chart? What indications we can gather from this chart?
Five answers:
dredude52
2006-10-13 00:59:21 UTC
You need High, Low, Close data to chart the stochastic.



It is a momentum indicator that compares a security's closing price to its price range over a given time period. The oscillator's sensitivity to market movements can be reduced by adjusting the time period or by taking a moving average of the result. This indicator is calculated with the following formula:



%K = 100[(C - L14)/(H14 - L14)]

C = the most recent closing price

L14 = the low of the 14 previous trading sessions

H14 = the highest price traded during the same 14-day period.



%D = 3-period moving average of %K



The theory behind this indicator is that in an upward-trending market, prices tend to close near their high, and during a downward-trending market, prices tend to close near their low. Transaction signals occur when the %K crosses through a three-period moving average called the "%D".



Also, stochastics is at the heart of the insurance industry.
2006-10-13 08:02:46 UTC
A stochastic process is a sequence of measurable functions, that is, a random variable X defined on a probability space (Ω, Pr) with values in a space of functions F. The space F in turn consists of functions I → D. Thus a stochastic process can also be regarded as an indexed collection of random variables {Xi}, where the index i ranges through an index set I, defined on the probability space (Ω, Pr) and taking values on the same codomain D (often the real numbers R). This view of a stochastic process as an indexed collection of random variables is the most common one.



A notable special case is where the index set is a discrete set I, often the nonnegative integers {0, 1, 2, 3, ...}.



In a continuous stochastic process the index set is continuous (usually space or time), resulting in an uncountably infinite number of random variables.



Each point in the sample space Ω corresponds to a particular value for each of the random variables and the resulting function (mapping a point in the index set to the value of the random variable attached to it) is known as a realisation of the stochastic process. In the case the index family is a real (finite or infinite) interval, the resulting function is called a sample path.



A particular stochastic process is determined by specifying the joint probability distributions of the various random variables.



Stochastic processes may be defined in higher dimensions by attaching a multivariate random variable to each point in the index set, which is equivalent to using a multidimensional index set. Indeed a multivariate random variable can itself be viewed as a stochastic process with index set {1, ..., n}.
Hoa N
2006-10-13 06:15:55 UTC
go to 3 of the best website:

http://www.stockcharts.com

http://www.incrediblecharts.com

http://www.stockTA.com



you will learn how stochastic chart
stock.geek
2006-10-13 16:01:40 UTC
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2006-10-13 10:30:05 UTC
It is used in technical analysis. It is a momentum indicator.



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This content was originally posted on Y! Answers, a Q&A website that shut down in 2021.
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