Discover how to calculate the stochastic oscillator in Excel, and get a web-connected spreadsheet that automatically plots this critical technical indicator.

The link to the free automated spreadsheet with connectivity to Yahoo Finance is at the bottom of this article, but read on to discover more about the stochastic oscillator. Lane, in an intellectual epiphany, developed the stochastic oscillator in the late 50s. This important technical indicator calculates the momentum of stock price changes, and is defined by these equations courtesy of Wikipedia.

The lookback period is usually 14 days and the smoothing period is usually 3 days. If a security trends upwards day-by-day, then it generally closes near the upper limit of its daily trading range; the stochastic oscillator will rise.

However, if the security falls, then then daily closes will be at or near the lower limit of their daily trading range; the stochastic oscillator will then fall.

Stochastic Oscillator Definition & Example | Investing Answers

The stochastic oscillator is often paired with MACD ; these two technical indicators work well together. The stochastic oscillator is easy to calculate in Excel.

Understanding Stock Technical Analysis

You can use worksheet formulas this is simpler but less flexible or VBA this requires more specialist knowledge but it far more flexible. Get OHLC data for your stock.

You could use the ever-popular Bulk Stock Quote Downloader if you do, remember to copy the downloaded data into a new spreadsheet — otherwise your formulas get deleted when you updated the sheet. This Excel spreadsheet automates the calculation of this technical indicator for any ticker found on Yahoo Finance. Get Excel Spreadsheet to Calculate Stochastic Oscillator from Data Automatically Downloaded From Yahoo Finance.

Hi Sir, I have tried to plot stochastic oscilator by copying into my own excel, everything is working but close price line is missing as well not updating on the right side. Your Excel program looks very useful, so I hope I can use it on OpenOffice.

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August 22, at December 22, at Hi Samir, the formula on this page is not correct. December 22, at 7: March 1, at 5: March 6, at 1: Leave a Reply Cancel reply Your email address will not be published.

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