The Dinapoli Preferred Stochastic indicator uses the smoothing method described by Joe DiNapoli, which differs from the standard stochastic.
There are four input parameters:
- %K period - K line calculation period;
- %D period - D line calculation period;
- Slowing - slowing calculation period;
- Applied price - price used for calculations.
Calculations:
K = PrevK + (FastK -PrevK) / Slowing D = PrevD + (K - PrevD) / %D period
where:
FastK = 100.0 * (Close-Min) / (Max-Min) Max, Min are the highest and lowest prices within the '%K period' interval
