newdigital, 2013.06.06 07:51
Thus, the most usual rules/signals (most usually used) for this indicator are the following:
1. main line of indicator is above or below some level indicating overbough/oversold
2. main and signal lines are started to move to our direction
3. main line of indicator is above or below 50
Item #1 was described on this thread. So, I am going to explain about #2 and #3 ... slowly as usually :) so :
more to folow ...
That is why I said that it is the example (as I am not a coder).
Just to finish totally with this first condition of Stochastic indicator - look at this image:
MetaTrader Trading Platform Screenshots
EURUSD, H1, 2013.06.06
MetaQuotes Software Corp., MetaTrader 5, Demo
do you like it?
Do you like it? yes ... but it is just 7 trades in a year only ... so - this is market condition setup (not for signals ... not for EAs/ creation ... not for manual trading ...).
- main line of indicator is above or below some level indicating overbough/oversold - discussed
- main and signal lines are started to move to our direction - will be discussed soon
- main line of indicator is above or below 50
I am going to continue and finish this thread this week ... I will need to collect my thinking abilities sorry :)
Thus, we discussed about the following: main line of the indicator is above/below some pre-selected level for overbough/oversould. Next one is coming (with the examples and EAs as well): main and signal lines are started to move to "our direction":
newdigital, 2013.06.03 19:17
So, rules for buy:
And opposite for sell.
For the next few posts - we will descuss about how to trade this setup (or how to use it), and what those rules mean.
is there some thing about time frame ?
mainly not. it is something related to the settings of Stochastic for example.
1. First case (slow stoch) - it was explained: slow stoch (main line) on bar #1 is below 20
2. Second case - to be explained - fast stoch on bar #1 is below 50
3. 3rd case
3.1. medium stoch on bar #2 is below 20
3.2. medium stoch on bar #1 is above 20
3.3. medium stoch main line on bar #1 is above medium stoch signal line on same bar #1
3.4. medium stoch main line on bar 2 < medium stoch main line bar #1
newdigital, 2013.06.03 19:07
For now - we can describe the trading rules for those 3 Stochastic indicators:
Something Interesting in Financial Video July 2013
newdigital, 2013.07.09 20:58
The Stochastic Oscillator contains two lines which are plotted below the price chart and are known as the %K and %D lines. Like the RSI, the Stochastic is a banded oscillator so the %K and %D lines fluctuate between zero and 100, and has lines plotted at 20 and 80 which represent the high and low ends of the range.