Advanced GET Studies - GET Stochastic

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Advanced GET Studies - GET Stochastic

The GET Stochastic study is designed to indicate when the market is overbought or oversold. It is based on the premise that when a market's price increases, the closing prices tend to move toward the daily highs and, conversely, when a market's price decreases, the closing prices move toward the daily lows. A Stochastic displays two lines, %K and %D. %K is calculated by finding the highest and lowest point in a trading period and then finding where the current close is in relation to that trading range. %K is then smoothed with a moving average. %D is a moving average of %K.
The GET Stochastic study differs from the "classic" Stochastic study in that it has a unique feature called the False Bar. The False Bar indicates the presence of a strong trend and that the standard overbought and oversold signals should be ignored. The False Bar is intended to help prevent selling or taking a short position in an uptrend and buying or taking a long position in a downtrend.

The study works best when the market is in a non-trending mode where it oscillates between the overbought and oversold ranges. A sell signal is generated when you have a crossover of the %K and the %D when both are above the band set at 75. A buy signal is generated when you have a crossover of the %K and the %D when both are below the band set at 25. However, if a False Bar appears above or below the crossover signal, these signals are not valid and should be ignored.

An alternate, more aggressive method of using the Stochastics is by using a pyramid system of adding on positions during a strong trend. As a major trend continues, you could use all of the crossing of the %K and %D regardless of where the Stochastics lines cross. For example, if you follow this approach in an up trending market, you would take all the upturns by the Stochastics as additional buy signals (to pyramid your positions), regardless of whether %K or %D reached the oversold zone. The Stochastics sell signals would be ignored, except to take short-term profits. The reverse would be true in a down trending market.
Please note that you must purchase Advanced GET to access this study.
How do I apply the GET Stochastic study?
To apply the GET Stochastic study to a chart, left-click on the GET icon and select GET Stochastic from the drop-down menu.

 Alternatively, you can also right-click on the chart, when the menu appears, left-click on Insert Study, left-click on the Advanced GET tab and then select GET Stochastic.

 The GET Stochastic study will then appear in a study pane of the chart window.

To edit the GET Stochastic study parameters, either right-click on the chart and select Edit Chart or right-click on any of the lines of the study and select Edit.

Length: Indicates the number of bars used to find a moving average when calculating %K.
%K: Indicates the period of the moving average that is used to smooth %K.
%D: Indicates the period of the moving average that is applied to %K to find %D.
Upper Band: Indicates at what level the Upper Band will be drawn.
Lower Band: Indicates at what level the Lower Band will be drawn.

Select the Alerts tab to set an alert for when the %K crosses the Upper Band line, Lower Band line, or %D line. Also, an alert can be set for when a False Bar appears or disappears.

Auto Reactivate: When checked, the alert will reactivate so it can be triggered again.
Once per Bar: When checked, the alert will not trigger again until the price bar forms.
Alert Action: Select for when an alert triggers, to get a pop up alert, an audio alert, and if configured, an e-mail alert message.