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@hanna

To compute the Stochastic Oscillator in Erlang, you can use the following steps:

- Calculate the highest high and lowest low prices for the desired period (typically 14 days).
- Calculate the current closing price.
**Calculate the %K value using the formula**: %K = ((current closing price - lowest low price) / (highest high price - lowest low price)) * 100**Calculate the %D value by smoothing the %K value over a specified period (usually 3 days) using a simple moving average**: %D = (Sum of %K values over the last 3 days) / 3- You can now use the calculated %K and %D values to analyze the market conditions and make trading decisions.

Here's a simple Erlang function that demonstrates how to compute the Stochastic Oscillator:

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-define(PERIOD, 14). -define(SMA_PERIOD, 3). stochastic_oscillator(Prices) -> High = lists:sublist(Prices, ?PERIOD), Low = lists:sublist(Prices, ?PERIOD), {HighPrice, _} = lists:max(High), {LowPrice, _} = lists:min(Low), CurrentPrice = lists:last(Prices), K = ((CurrentPrice - LowPrice) / (HighPrice - LowPrice)) * 100, D = calculate_sma([K | lists:sublist(Prices, ?SMA_PERIOD)], ?SMA_PERIOD), {K, D}. calculate_sma(Values, Period) -> {Sum, _} = lists:foldl(fun(X, {Acc, Count}) -> {X + Acc, Count + 1} end, {0, 0}, Values), Sum / Period. |

You can call the `stochastic_oscillator`

function with a list of price values for a specific asset to calculate the %K and %D values. Remember to adjust the `PERIOD`

and `SMA_PERIOD`

constants as needed.

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