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fIgure 8.21 True Range Action of the Daily Chart of Gold.
Source: MetaTrader 4

stochastic oscillator, the fast and the slow. In each representation, there are two
lines, one called the %K and its corresponding signal line called the %D. In the
fast version of the stochastics we have the fast or raw %K and fast %D. The fast
stochastic is calculated as follows:

FastorRaw K% (=−−×CLHLn)/( n n) 100 %

Fast %D= 3 -period simple moving average of Raw%K

In the slow version of the stochastics we have the slow %K and slow %D. The
slow stochastic is calculated as follows:

Slow K -period simple moving average of Raw K

Slow D -period si

% %

%

=

=

3

3 mmple moving average of Slow K%

fIgure 8.22 Percentage of Price Range.

Assume

OHLC

1.5020 100%

C

O

H

1.5000

1.4950

1.4900 0%

83.3%

%K = × 100

= 83.3% (bounded between 0 and 100%)

1.5000 − 1.4900

1.5020 − 1.4900

L

Open

1.4590

High

1.5020

Low

1.4900

Close

1.5000