Adaptive Stochastic Oscillator

Adaptive Stochastic Oscillator (ASO) was first introduced in December 1992 in STOCKS & COMMODITIES magazine in the article named "Stochastic RSI And Dynamic Momentum Index". Author of material and creator of indicator is a trader Tushar Chande.

ASO represents an attempt of optimization of stochastic oscillator, as well as the method to calculate the last close price ratio to maximum/ minimum for a definite period of time. The main difference is that calculation of ASO accounts for present volatility. The faster price moves, the less oscillator window becomes and its sensibility grows. This way adaptive stochastic oscillator unites advantages of both quick and slow stochastic indicator.