Stochastic expansion oscillator is a stochastic oscillator with a non-conventional calculation and display.
The indicator has three input parameters:
- %K period - K line calculation period
- Slowing - slowing calculation period
- Noise filter period - noise filter calculation period (signal line)
Calculation:
K = KB1+KB2 Signal = SMA(K, Noise filter period)
where:
KB1 = AvgLow/AvgHigh KB2 = -AvgHigh/AvgLow AvgLow = SMA(LowB, Slowing) AvgHigh = SMA(HighB,Slowing) LowB = Close-Min HighB = Max-Close Min, Max - the lowest and the highest prices in the %K period range
