I am finding when I apply the Stochastic indicator on Yahoo that it gives me a range going above 100 and below 0. Given this is a oscillator I would have thought it couldn’t go above 100 or below 0. I have attached a screenshot. I am guessing they are calculating this in a different way then normal. Any thoughts?
How does the maths allows this though as the calculation does the following:
- The current Close minus the lowest low in x amount of periods - This has to equal to zero or higher because if it was negative then you would be saying the current close is lower then the lowest low which isn’t logical.
- The highest high minus the lowest low in x amount of periods - again has to be a positive number or zero.
- It divides the above which therefore must produce a result between 100 and 0.
Am I miscalculating?
Richard Stochastic indicator on Yahoo-yahoo-eurusd-jpg