Stochastic Oscillator in EasyLanguage — TradeStation & MultiCharts

Given that the stochastic grew up on the Chicago trading floors that also shaped systematic futures trading, it’s fitting that EasyLanguage handles it cleanly. Here’s the slow stochastic from the explainer, both via the built-in function and from scratch.

What you’ll need

• TradeStation or MultiCharts
• The EasyLanguage / PowerLanguage Editor, new Indicator

The built-in version

EasyLanguage’s Stochastic function fills variables passed by reference with the fast and slow lines in one call:

{ AlgoGen Stochastic — TradeStation / MultiCharts }
inputs:
    KLen( 14 ),
    KSmooth( 3 ),
    DLen( 3 );

variables:
    oFastK( 0 ), oFastD( 0 ), oSlowK( 0 ), oSlowD( 0 );

Value1 = Stochastic( High, Low, Close, KLen, KSmooth, DLen, 1,
                     oFastK, oFastD, oSlowK, oSlowD );

Plot1( oSlowK, "%K" );
Plot2( oSlowD, "%D" );
Plot3( 80, "OB" );
Plot4( 20, "OS" );

The function writes oSlowK and oSlowD — the slow %K and %D — which we plot as the blue and orange lines from the output chart.

The from-scratch version

To see exactly what it’s doing:

{ AlgoGen Stochastic (manual) }
inputs: KLen( 14 ), KSmooth( 3 ), DLen( 3 );
variables: LL( 0 ), HH( 0 ), Rng( 0 ), RawK( 0 ), SlowK( 0 ), SlowD( 0 );

LL  = Lowest( Low, KLen );
HH  = Highest( High, KLen );
Rng = HH - LL;
if Rng = 0 then RawK = 50 else RawK = 100 * ( Close - LL ) / Rng;

SlowK = Average( RawK, KSmooth );   { slow %K }
SlowD = Average( SlowK, DLen );      { %D }

Plot1( SlowK, "%K" );
Plot2( SlowD, "%D" );

Verify & apply

1. Paste, press F3 to verify, apply in a sub-graph.
2. Confirm your %K/%D match the output chart’s crossing points.

Gotchas

• Rng = 0 guard. Lowest/Highest can be equal on a flat window; the guard substitutes a neutral 50 instead of dividing by zero.
• Built-in signature. The Stochastic function returns all four lines by reference — fast and slow — plus a return value; assign that to a dummy (Value1). Read the slow outputs for the standard 14,3,3.
• Average is the SMA. The stochastic smoothing is simple, not exponential — use Average, not XAverage.

Same indicator elsewhere: Python, MQL5, Pine Script, NinjaScript. Then backtest it in AlgoGen.

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This post is educational, not financial advice. Indicators describe the past; they don’t predict the future. Backtest anything before you risk real money on it.