Bar-Based Stochastic Difference Histogram

Summary

This indicator modifies the stochastic oscillator by plotting the difference between its smoothed %K and %D lines as a histogram. It calculates fast %K from the close’s position within the high–low range over the selected %K period, then applies configurable moving averages and a slowing period to form the K and D values. The histogram is K minus D.

The settings cover both line periods, smoothing methods, overbought and oversold levels, and whether to display each line. The description gives the calculation but provides no trading rules, chart examples, or performance evidence. It does not establish that histogram changes predict price movements or specify how to handle signals, risk, or market selection, so users would need to evaluate those choices separately.

Key ideas

• The histogram is calculated as smoothed %K minus smoothed %D.
• Fast %K measures the close relative to the high–low range over the selected period.
• Users can configure the periods, smoothing methods, threshold levels, and line visibility.
• The description explains the calculation but does not provide trading rules or performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.