Using Stochastic indicator with Moving Average indicator in MQL5 EA.

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Hi all,

I am using Stochastic indicator in MQL5 EA. I want to use moving average along with please refer following screen shot.

Following is the moving average settings.

With the above setting I want to determine when moving average get in/out of over bought and over sold region of stochastic indicator in EA.

Please help.

 
Don't apply it to the close, apply it to the previous indicator
 
whroeder1:
Don't apply it to the close, apply it to the previous indicator

I tried it,

but after applying it to the previous indicator it shows over sold again and again however price continue to go down.


currently (with close price) when moving average get in to over sold region at the same price stopped going down, bur if I go with stochastic it shows over sold but still price continue to go down. That is why I am trying to use moving average with close price.


Moreover please mention if there is any solution to stay away from these false over sold and over bought of stochastic.


Thanks...

 
salirazataqvi:

I tried it,

but after applying it to the previous indicator it shows over sold again and again however price continue to go down.


currently (with close price) when moving average get in to over sold region at the same price stopped going down, bur if I go with stochastic it shows over sold but still price continue to go down. That is why I am trying to use moving average with close price.


Moreover please mention if there is any solution to stay away from these false over sold and over bought of stochastic.


Thanks...

Don't expect the Stochastic (or ANY other indicator) to predict the market or even do their promised miracle all the time.
all indicators are based on past data, and the best approach is to use them as confirmation for signals, and even then, don't rely 100% on that confirmed signal
 
Code2219 or probably 2319:
Don't expect the Stochastic (or ANY other indicator) to predict the market or even do their promised miracle all the time.
all indicators are based on past data, and the best approach is to use them as confirmation for signals, and even then, don't rely 100% on that confirmed signal

Thanks for  your suggestion.... I would not count on that 100%... but is there any way to achieve what I am trying to do.

 
salirazataqvi:

Thanks for  your suggestion.... I would not count on that 100%... but is there any way to achieve what I am trying to do.

if you insist on relying on indicators, combine them.
e.g. if Stochastic<20 and rising  & RSI<30 and rising & EMA20 crossed above EMA50 &.... and bigger timeframes suggest an upward movement in price, then PROBABLY buy.
 
Code2219 or probably 2319:
if you insist on relying on indicators, combine them.
e.g. if Stochastic<20 and rising  & RSI<30 and rising & EMA20 crossed above EMA50 &.... and bigger timeframes suggest an upward movement in price, then PROBABLY buy.

Thanks , i'll try it.... but if I go with your suggestion "don't rely 100% on that confirmed signal"  then what should I do for trade setup because EAs work on technical analysis not on fundamental analysis.

 
salirazataqvi:

Thanks , i'll try it.... but if I go with your suggestion "don't rely 100% on that confirmed signal"  then what should I do for trade setup because EAs work on technical analysis not on fundamental analysis.

I've decided to do these:

  • stick to longer swings instead of trying to milk every wave or sub-wave in a trend.
  • use the safer setups. (setups that usually have higher success rates, and they ignore many possible profits.)
    like EMA crossovers paired with ADX.

  • when trying to use indicators in your EA code, you'll notice it's much more complicated and time-consuming to translate what your eyes see and your mind interprets*, into the code.
    e.g. stochastic can stay in <20 area for days and days, and with increasing volume, you probably make profit by selling than hoping for a reverse to happen.
    now turn that interpretation into code :S (Stochastic<20 for how long? how much increase in volume is a flag to switch to selling ? what's the pair done in similar situations in past? )
    market is changing , each pair has a unique behavior , (compare EURUSD and GBPJPY price actions and their indicators, to see the difference.)

    all I'm saying is, you should have a experienced, working, interpreting, active mind, AND be able to translate ALL that processing power, into code.

    that's been my problem forever, still not sure if my EA can do what my brain tries to do.
    I've been practicing in demo for almost two years now, and am confident of my strategies, but not my feelings. so I need a EA to be able to do all my brain work, and not to fail on tilt and eager and temptation.


* : as a friend of mine once said : "when you meet someone, you may start the greeting and shake hands, but in order to code that you should first check if he/she isn't missing a limb (right hand).
your mind processes that if() condition instantly and subliminally ."

Good Luck :)

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