3-period moving average

A study published in the Encyclopedia of Technical Market Indicators "found some very good signals were given by 39 unsmoothed period stochastic oscillator (k = 39, no signal line). A buy signal is generated when K crosses above 50% and the closing price is higher than the close of the previous week. Sell ​​and / or sell short signals are created when the K line crosses below 50% and the closing price is below the low close of the previous week. Taking a longer period, rather than smoothing the data over a 3-period moving average allows the analyst to view Lane's Stochastic.