Forum on trading, automated trading systems and testing trading strategies
Sergey Golubev, 2016.03.28 14:13
This is very good EA for newbies - for the traders who are learning Stochastic indicator about how it works. EA is trading on overbought/oversold levels of Stochastic indicator with the following parameters which were coded to be inside this EA:
The coder proposed set file for this EA so we may use this EA on EURUSD M15 timeframe according to this set file/parameters.
I backtested EA just to see how it works - please find backtesting results and some charts with the ideas about overbought/oversold levels:
I decided to make some indicators' review based on trading experience and using them inside manual trading systems. So, please find the first thread about Stochastic Oscillator.
Feel free to add or write any comments concerning this indicator about how to use it inside trading systes, how to trade using this indicator and so on.
Sto.chas.tic (sto kas'tik) adj. 2. Math. designating a
process having an infinite progression of jointly distributed random
--- Webster's New World Dictionary
Stochastic is default/standard indicator in Metatrader 5 and it is located right here (look at the image):
From Achelis "Technical Analysis from A to Z" :
The Stochastic Oscillator is displayed as two lines. The main line is called
"%K." The second line, called "%D," is a moving average of %K. The %K line is
usually displayed as a solid line and the %D line is usually displayed as a
There are several ways to interpret a Stochastic Oscillator. Three popular
Buy when the Oscillator (either %K or %D) falls below a specific level (e.g.,
20) and then rises above that level. Sell when the Oscillator rises above a
specific level (e.g., 80) and then falls below that level.
Buy when the %K line rises above the %D line and sell when the %K line falls
below the %D line.
More detailed explanation about this indicator we can see from this small article (from MT5 documentation/help file): Stochastic Oscillator
And full description about this indicator concerning trading signals - read this very small article: Signals of the Oscillator Stochastic
Double smoothed stochastic Blau - indicator for MetaTrader 5
This version can easily be tracked down. It was originally published in an TASC article : "Double-Smoothed Stochastic" by William Blau and was published way back in 1990.
Double smoothed stochastic of ratio - indicator for MetaTrader 5
Unlike the double smoothed stochastic itself (that was originally published here : Double Smoothed Stochastic), the "ratio" part of this version can be traced back to Walter Bressert - he uses it as an oscillator, but since that way of calculating (ema(short)/ema(long)) is known for long time before that, only the ratio is added to the indicator name.
Double smoothed stochastic - indicator for MetaTrader 5
When it comes to double smoothed stochastic, there seems to be a lot of confusion there. Quite a few versions, and some people claiming to be inventors of it - some with and some without any traceable proof of being actually the inventors. In order to make a bit of order in the whole thing, few versions will be psted.
Market Change Cycles MT5 - indicator for MetaTrader 5
Market Change Cycles - an enhanced version of the Stochastic Oscillator, which calculates the position of Close not only in relation to
MaxHigh and MinLow, but also displays the difference between them from the opening price, which allows you to take market volatility
into account when creating a strategy.
Version for MT4 - https://www.mql5.com/en/code/25992
Stochastic Time Control - indicator for MetaTrader 5
Indicator based on iStochastic (Stochastic Oscillator).
Additional features added:
In “The Stochastic MACD Oscillator” of November 2019 issue of TASC, author Vitali Apirine introduces a new indicator created by
combining the stochastic oscillator and the MACD. He describes the new indicator as a momentum oscillator and explains that it allows
the trader to define overbought and oversold levels similar to the classic stochastic but based on the MACD.
iStochastic Increase Position Volume -
expert for MetaTrader 5
Trading strategy idea
Trading by the iStochastic indicator (Stochastic Oscillator, STO). Checking the idea: is it possible to trade on the signal "intersection
of the main and signal lines" without taking into account the indicator levels. In this case, it is possible to increase the position,
but with the opposite signal, the positions will be closed. The EA does not have Stop Loss, Take Profit and Trailing.
The figure below shows the ' Stochastic Intersection Arrow ' indicator (displays arrow objects) and the standard iStochastic indicator (Stochastic Oscillator, STO). Please note that the standard iStochastic indicator is shown only to explain how the custom indicator ' Stochastic Intersection Arrow ' works - the standard iStochastic indicator is not displayed during operation .
Sergey Golubev, 2013.06.03 10:38
This is the real example about valid signal based on Stochastic, and some movement which is related to news event for now. We will come back to this image later but I think - it is good example about the following "news events are not our friends" :)
Sergey Golubev, 2018.10.17 18:10
Stochastic Oscillator in Trading (based on the article)
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