Indicator Description

SLOW_KD (Slow Stochastic Indicator) is a momentum indicator that reflects the overbought and oversold state and trend changes in the market by calculating the stochastic indicator of price.

Function Information

• Function Name: SLOW_KD
• Input Parameters: High, Low, Close
• Parameter Settings: timeperiod1 (default: 8), timeperiod2 (default: 3), timeperiod3 (default: 3), timeperiod4 (default: 3)
• Output: k, d

Calculation Principle

SLOW_KD is calculated using the following formula:

RSV = (Close - Lowest Low) / (Highest High - Lowest Low) * 100
K = MA(RSV, timeperiod2)
D = MA(K, timeperiod3)

Where RSV is the Raw Stochastic Value, Lowest Low/Highest High are the price extremes in the period, and MA is the moving average.

Usage Scenarios

1. Overbought and oversold judgment
2. Trend reversal identification
3. Divergence signal analysis
4. Trading signal generation

Usage Recommendations

1. K line crossing above D line can be seen as a buy signal
2. K line crossing below D line can be seen as a sell signal
3. Use in combination with overbought and oversold thresholds
4. Pay attention to the use of divergence signals