DYO: Price Finder example for Stochastic

Q: I have struggled with the price finder and the best way to implement it. In the template enclosed I use price finder in the objects "8 Sto KXD", "Spread PF", "Sto Blue price", "Sto White price", "Sto Red price". When an indicator is far away from a price cross, the finder will not show anything which is OK, but when the market is close to the price finder price, it is still not always showing a cross price. Can you just look the objects and see the different ways I have tried to make it work and give me your opinion as to which way to use price finder is best? Also, in a DYO under "study value" for a stoch, how would "%K cross %D Forecast" be used instead of the price finder? The values seem to be different, as least for me?

A: The %K cross %D forecast selection is a mathematical formula based on exponential averages (if I remember correctly) being used in the formula. The Price Finder will work with any formula used in the study by iteratively trying all the prices on the chart scale to see if any of them cause the test flags to change states. So price finder runs a test price through the study formulas, which is quite like the data feed giving us that price in real-time.

I will use your 8StoKXD example for my suggestions.

You do the PriceFinder twice, once to get the High crossing price and a 2nd to get the low crossing price.  And you plot the price in either green or red.   You could do the same using 1 Price Finder as shown above.  I also plotted the line so you could see the forecast price is working.   Line A and B initialize the paint can with Red or Green for the Line C to use as the plotted line and the label.  The only thing lost in my example was the arrow in the label pointing left or right as in your example.  However, Price Finder is one of the slowest studies to calculate, so a reduction of 2 to 1 in this example is a significant speed improvement.

Last modified 10/29/09 12:26 PM