Stochastic Oscillator, the beginning - page 37
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This is ther right tanks pal!!! Happy trades!
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One variation on the stochastic theme ...
The overbought and oversold levels are treated a bit different in this one. Instead of keeping them on constant levels they are calculated form the stochastic itself and are modified by a certain step as the time from the last high or low passes. It looks interesting and it seems that it can give a bit different picture at the market looking at indicator values this way
Will it be possible to place an alert when price penetrates the longer slope?...
Thanks Mladden, DSS is the cats meow!
secretcode, Not the same (not possible to have that kind of filled arrays in metatrader 4, I have seen some attempts to do that metatrader 4 and I have tried some but all of them fail under some conditions so did not make that type) but similar. As far as values are concerned, they are the same. Colored zone is the middle zone and when stochastic exits those zones it is in overbought or oversold zone, so it is visually having a similar effect as the metatrader 5 version since when it enters those zones it changes color of the line too.
This is now my favorite filter.
Best regards,
gcgman
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It turned out to be simpler than I thought. This one will alert when the line opposite to the last penetration is penetrated, and it translates to exactly what you asked for : the longer line is always opposite to the current last penetration peak
To turn the alerts on, set the alertsOnparameter to true. The rest is there t choose exactly what kind of alerts you want
Will it be possible to place an alert when price penetrates the longer slope?...
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Great...Thank you
Stochastics cross signal
Hi there,
I need an ea or a script that, when applied to a chart, will place an order (buy or sell) when the stochastic crosses above from 80 (sell) or below from 20 (buy).
Obviously this script/ea should have options as to the size of the order, and should also accomodate trailing stop and stop orders.
Thanks
Great topic, indeed. The stochastic indicator is presently one of my favorites
It's just that it takes a while to get a real understanding of what it can do for you. For me the lights went on once I understood that you should not just use it as an overbought/-sold indicator, but also as a momentum indicator, where you take certain levels of K and/or D as indications of a trend being strong/weak, such as when being above/below 80/20.
Another great article about this indicator can be found at http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:stochastic_oscillator
Especially for Slow versus Fast versus Full Stochastics.
This following phrase of the first post had me wondering for a moment:
A reading of 0% shows that the security's close was the lowest price
that the security has traded during the preceding x-time periods.
A reading of 100% shows that the security's close was the highest price
that the security has traded during the preceding x-time periods.Since I use slow stochastics, this puzzled me as I didn't find the 100% and 0% values as the quote suggests. In fact it applies to fast stochastics, and only occasionally occurs on slow stochastics.
Attached is a chart example that should make this point immediately clear. Upper stoch is fast, lower stoch is slow.
Take care!
Question?
This is now my favorite filter.
Best regards,
gcgmanHi gcgman, Thanks for posting your chart with favorite filter. Can I ask what appears to be two smoothed moving averages are in the chart window? They look nice too. Thanks!
DSS with 2 MAs
Hi gcgman, Thanks for posting your chart with favorite filter. Can I ask what appears to be two smoothed moving averages are in the chart window? They look nice too. Thanks!
Jake Bernstein recommends using the simple 8 open & close. I instead use the LWMA of the 8 open & close. For the DSS I am using settings of 7,3. I found that I was sometimes a little late coming to the party so I changed the boundaries of the DSS to 85 and 15. I watch for opportunities when the DSS comes out of overbought and oversold but, as a filter I don't buy when the DSS is in oversold and I don't sell when DSS is in overbought. That may sound absurd but, it can stay in ob/os for a long time before coming out. Likewise, I am watching the two moving averages for crossing signals to buy or sell.
Good luck,
gcgman
Thanks again ...
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Thanks again gcgman, been experimenting with the moving averages and could not get anything like what you have, also tried the DEMA rsi, and various versions of smoothed rsi -- currently with the BBRSI; but have not yet tried your DSS settings. Good trading,
.