@kebaya, quite technical. A few questions perhaps...
-stochs stands for? (stochato...)
-what does K and D represent?
-and if you're using Safaricom, why does the axis show 100/500? (percentages...)
-and what's the blue line? (index...)

Just a few hindrances with the method.
-note largest variance around Sep 30 and Oct 07 but this only translated to a 1.5% variance in share price
-NSE is not fully automated so realistic trading period is greater than a day
-charges represent up to 2% per trade; both ways comes to 4%

Stoch stands for Stochastic Oscillator. A financial indicator that detects overbought and oversold levels of a security with some degree of accuracy.

"Stochastics attempts to predict turning points by comparing the closing price of a security to its price range. Prices tend to close near the extremes of the recent range just before turning points. In the case of an uptrend, prices tend to make higher highs and the settlement price usually tends to be in the upper end of that time period's trading range. When the momentum starts to slow, the settlement prices will start to retreat from the upper boundaries of the range, causing the stochastic indicator to turn down at or before the final price high" SORRY I COPY PASTED

Basically we want to know when a share has been overbought so that we can sell it high or it has been oversold so that we can buy it cheap

http://www.investopedia....tochasticoscillator.asp

NOTE : THIS IS STILL A WORK IN PROGRESS..STILL A FAR PROJECT FROM BEING USED TO TRADE AT THE NSE..I AM STILL ON THE DARK..TRYING TO CONNECT ONE OR TWO DOTS..

naona The Patron sain ameanza kukuonekania.
Tell us when its working..doesnt mean complete though..