# Stochastic - page 9

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Try these parameters with MA crossoverThree stochastic- expert for MetaTrader 5Triple Stochastic Ea. fully customizable.

Stops are placed above highs and lows your option to place stop at high or lowest price of the last x number of candles.

The two larger stochastics must be in same direction then waits for a cross in the same direction on the smaller stochastic.

Forum on trading, automated trading systems and testing trading strategies

Stochastic

Sergey Golubev, 2013.06.01 18:29

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 variables.

--- 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" :

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:

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.

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.===============

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

Forum on trading, automated trading systems and testing trading strategies

Stochastic

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" :)

Files:Max Eric Carlson:here is a ea shows when cross on lesser stoc

Two MA one Stochastic- indicator for MetaTrader 5The indicator analyzes the values of two iMA (Moving Average, MA) and iStochastic ( Stochastic Oscillator, STO) relative to the price and gives advice on entering a position.

I am checking this old system now (3 Stochastic trading system), and seems - it works.

Just want to remind -

Forum on trading, automated trading systems and testing trading strategies

Stochastic

Sergey Golubev, 2013.06.01 18:29

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 variables.

--- 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" :

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:

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.

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.===============

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

The settings of Stochastic indicators in this system:

Forum on trading, automated trading systems and testing trading strategies

Stochastic

Sergey Golubev, 2013.06.03 19:07

For now - we can describe the trading rules for those 3 Stochastic indicators:

The rules of this system:

started from page #2, for example:

Forum on trading, automated trading systems and testing trading strategies

Stochastic

Sergey Golubev, 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.

Thus, we can get the following charts (MT5, template files are attached):

Files:As the new Stochastic indicator was created today for the forum (CodeCase) so we are trying to check about how to use it instead of standard Stochastic indicator.

----------------

New Stochastic -

Stochastic Levels Filling - indicator for MetaTrader 5In the indicator, the levels are included in the input parameters - this is very convenient for visual testing of Expert Advisors. Plus, the entire area above the top level and below the bottom is colored. The area takes into account both the main and the Stochastic signal lines.

----------------

Thus, please find improved 3 Stochastic trading system using this new indicator:

Files: