Over the years numerous
technical indicators have been developed to describe the stock performance, or,
hopefully to predict future price movements. In this section we introduce five
of the most useful indicators, provide examples, and explain how they are
calculated.
Stochastics
Figure 7. K/D

KD stands for two Stochastic indicators K and D.
In order to compute the pperiod K, one needs
to compute the pperiod high Hp and low Lp,
then the fast Stochastic K is given by
The qperiod slow Stochastic D is simply the
qperiod moving average of K. Many people simply
refer to D by calling it KD.
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