In this Excel tutorial, you will learn how to calculate stochastic oscillator in Excel.
Stochastic oscillator formula
Here is the Stochastic Indicator Formula:
%K=(C–H) / (H–L)×100
- C is the current closing price
- H is the highest high over the lookback period
- L is the lowest low over the lookback period
%K is plotted with another quantity, %D. %D is a simple moving average of %K over a defined smoothing period
Stochastic oscillator calculation
Use this formula to calculate the Stochastic Oscillator.
- Date is under column A>
- Open is under column B
- High is under column C
- Low is under column D
- Close is under column E
- Then in column F
write this formula:
- =100*(E1-D1) / (C1-D1)
Suppose this is what your data looks like:
After applying these formulas, two lines oscillating on a vertical scale from 0 to 100 are created. The extreme values are determined by the levels of 80 and 20. They can be drawn on a graph in Excel, as I did below.
This will be your final result.
The sell signal occurs when the faster %K line crosses the slower %D line above the 80 level. The buy signal occurs when the %K line crosses the %D line from the bottom, i.e., below the 20 level.
You can read these signals directly from the chart.
This is how to Calculate the Stochastic Oscillator in Excel.