The monthly chart above shows my adaptation of the stochastic plotted on the price chart.
The code I am using is as follows;
Sp = Param("stoch Period", 2, 1, 55, 1);
Lv = MA(LLV(L,Sp), 3); Hv = MA(HHV(H,Sp), 3);
midpoint = Lv+(Hv-Lv)/2;
I am not saying that it is perfect, but it gives the general idea.
The stochastic uses some averaging for the actual indicator. On the price chart the close price can go above and below the 0% / 100% lines because it isn't averaged. The price becomes the indicator!
