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Technical Indicators
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.
K/D
Figure 7. K/D
KD stands for two Stochastic indicators K and D.
In order to compute the p-period K, one needs to compute the p-period
high Hp and low Lp,
then the fast Stochastic K is given by
The q-period slow Stochastic D is simply the q-period moving
average of K. Many people simply refer to D by calling it KD.
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