Stochastic - page 8

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Sergey Golubev
Moderator
116849
Sergey Golubev  

Forum on trading, automated trading systems and testing trading strategies

Something Interesting

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 parameters of Stochastic indicator which were coded inside this EA: 5/3/3
  • overbought/oversold levels to be coded in EA: 80/20
ea_Stochastic_system - expert for MetaTrader 4
  • "Advisor analyzes the readings of the indicator Stochastic has, signal for buying is the intersection of the main and signal indicator lines in the oversold zone, a signal for the intersection of sales is the main indicator and signal lines in the overbought zone."

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:






Seyedmajid Masharian
1940
Seyedmajid Masharian  
Sergey Golubev:

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.

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Sto.chas.tic (sto kas'tik) adj. 2. Math. designating a process having an infinite progression of jointly distributed random variables.

--- Webster's New World Dictionary

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Stochastic is default/standard indicator in Metatrader 5 and it is located right here (look at the image):



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From Achelis "Technical Analysis from A to Z" :

Interpretation

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 dotted line.

There are several ways to interpret a Stochastic Oscillator. Three popular methods include:

  1. 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.

  2. Buy when the %K line rises above the %D line and sell when the %K line falls below the %D line.

    Look for divergences. For example, where prices are making a series of new highs and the Stochastic Oscillator is failing to surpass its previous highs.


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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

stochastic does not work in trending markets
Sergey Golubev
Moderator
116849
Sergey Golubev  

Double smoothed stochastic Blau - indicator for MetaTrader 5

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.

Sergey Golubev
Moderator
116849
Sergey Golubev  

Double smoothed stochastic of ratio - indicator for MetaTrader 5 

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.

Sergey Golubev
Moderator
116849
Sergey Golubev  

Double smoothed stochastic - indicator for MetaTrader 5

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.

Sergey Golubev
Moderator
116849
Sergey Golubev  

Market Change Cycles MT5 - indicator for MetaTrader 5

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.

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Version for MT4 - https://www.mql5.com/en/code/25992

Sergey Golubev
Moderator
116849
Sergey Golubev  

Stochastic Time Control - indicator for MetaTrader 5

Stochastic Time Control - indicator for MetaTrader 5

Indicator based on iStochastic (Stochastic Oscillator).

Additional features added:

  • setting two levels (" Value Level Down " and " Value Level Up ") - these settings are recommended to be used when accessing the indicator from the EA and for debugging in visual mode - so that the indicator levels that are set are visually visible.
  • setting the time period in which indicator data is displayed
  • Use time control - use time period
  • the time interval is set as " Start Hour ": " Start Minute " - " End Hour ": " End Minute "
Sergey Golubev
Moderator
116849
Sergey Golubev  

Stochastic MACD - indicator for MetaTrader 5

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.

Stochastic MACD
Stochastic MACD
  • www.mql5.com
Stochastic MACD
Sergey Golubev
Moderator
116849
Sergey Golubev  

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.

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