Stochastics the professional's preferred price action indicator

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Most professionals and bank traders  use stochastics, the free platform indicator.Here is a back test.It does a better job than all the indicators out there, 5,000 of them on mt4.This is EA automated test using stochastics.


stoch

Files:
stoch_indicator.jpg  146 kb
 

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Stochastics


The beginning

  1. Stochastic Oscillator, the beginning

After

  1. Stochastic thread.
  2. Stochastic Trader thread 
  3. Multi pair indicators thread
    (Multi pair MACD, Multi pair CoeffOfLine, Multi pair RSi, Multi pair Stochastic, Multi pair WPR (Williams % range), Multi pair Laguerre RSI, Multi pair Wilders DMI, Multi pair dss, and more)
  4. Stochastic RSI for MT5 - the post 
  5. Stochastic rsi (oma) colored or MT5 - the post:
    - RSI types: Cuttler's RSI; Ehlers' smoothed RSI; Harris' RSI; Rapid RSI; RSI; RSX; Slow RSI
    - levels: floating; quantile; fixed
  6. Round price DOC indicator for MT5 - the post: Added 2 parameters : price (so we can chose the price we would like to use - in the original it is Close) and T3Original (false for Fulks/Matulich calculation which is faster then the original Tim Tillson calculation).

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Stoch RSI and variants (MT5 versions)


EAs

  1. Expert_RSI_Stochastic_MA - expert for MetaTrader 5
  2. Polish Layer - expert for MetaTrader 5. The Expert Advisor is based on the following indicators: RSI, WPR, Stochastic, Moving Average, deMarker.
  3. Altarius RSI Stohastic - expert for MetaTrader 5. The EA uses two iStochastic (Stochastic Oscillator) indicators and one iRSI (RSI, Relative Strength Index).
  4. The Puncher - expert for MetaTrader 5. Trades using indicators: iStochastic (Stochastic Oscillator) and iRSI (Relative Strength Index, RSI).

Indicators

  1. Double stochastic RSI - fl - indicator for MetaTrader 5. Double stochastic of RSI using floating levels instead of using fixed levels for overbought or oversold detection.
  2. Stochastic RSI (OMA) - indicator for MetaTrader 5. This indicator allows calculation of stochastic of RSI and stochastic of RSI of average (this version has the basic 4 types of averages). 
  3. Double Stoch RSI Floating - indicator for MetaTrader 5. Same double stochastic of RSI from here,  except that this version uses floating levels instead of fixed levels for OB/OS conditions. 
  4. Stochastic RSI - indicator for MetaTrader 5. Stochastic RSI (sometimes and by some sellers and traders) called DTOSC (dynamic trend oscillator). It is basically a stochastic of rsi.
  5. Stochastic of RSX - indicator for MetaTrader 5. Stochastic that is using rsx as an input for calculations.
  6. Double Stochastic RSI - indicator for MetaTrader 5
 

Forum on trading, automated trading systems and testing trading strategies

Stochastic

Sergey Golubev, 2013.06.11 17:34

mainly not. it is something related to the settings of Stochastic for example.

1. First case (slow stoch) - it was explained: slow stoch (main line) on bar #1 is below 20

2. Second case - to be explained - fast stoch on bar #1 is below 50


3. 3rd case

3.1. medium stoch on bar #2 is below 20

3.2. medium stoch on bar #1 is above 20

3.3. medium stoch main line on bar #1 is above medium stoch signal line on same bar #1

3.4. medium stoch main line on bar 2 < medium stoch main line bar #1


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:

  • 34/5/5 (fast stoch)
  • 55/8/8 (medium stoch)
  • 100/8/8 (slow stoch)








 

Forum on trading, automated trading systems and testing trading strategies

Stochastic

Sergey Golubev, 2013.06.03 19:17

So, rules for buy:

  • slow stoch (main line) on bar #1 is below 20
  • fast stoch on bar #1 is below 50
  • medium stoch on bar #2 is below 20
  • medium stoch on bar #1 is above 20
  • medium stoch main line on bar #1 is above medium stoch signal line on same bar #1
  • medium stoch main line on bar 2 < medium stoch main line bar #1


    • And opposite for sell.

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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, the most usual rules/signals (most usually used) for this indicator are the following:

- main line of indicator is above or below some level indicating overbough/oversold

or

- main and signal lines are started to move to our direction

or

- main line of indicator is above or below 50

 

and finally - 

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3 Stoch MaFibo trading system for M5 and M1 timeframe 

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The stochastics indicator is also a price action indicator.It is compared to the price indicator,. Stochastic is used by professionals and bank traders.They use it on daily and 4 hour charts.There are less false signals on 28/6/10 settings


Please take this free knowledge and wisdom from the thread, to improve your trading.



The technical analysis is already available on the free charts .The stochastic indicator is already doing the price action analysis on most trader's charts.This eliminates the need for price action candle by candle,analysis for longer term swing traders and trend  traders.


Get a coder to code an an EA to test indicators and test them out.Some eas only cost $50 to have them coded.


I prefer to use this  , it is very simple and reliable and free.



Files:
Stochastic28610.mq4  6 kb
 

tochastics


Here is the secret


Stochastics is doing a better job than moving averages etc.The minute one starts mixing with other indicators, moving averages , it means all other signals are destroying the benefits of the professional indicator called stochastics.All the good signals are getting killed by all the other 5,000 free indicators.


Here is result.

Files:
stoch_indicator1.jpg  118 kb
 
Here is stochastics indicator on it's own.The stochastics has outperformed moving averages, strategies  with trend lines , channels and everything else .There is proof


This is the power of the stochastics on it's own.No need for anything else.


stoch


graph

 
EA-trader:

Here is stochastics indicator on it's own.The stochastics has outperformed moving averages, strategies  with trend lines , channels and everything else .There is proof


This is the power of the stochastics on it's own.No need for anything else.




Try with spread 20 (because its points, not pips) and come again.

 
Could you guys make about 10 new stochastics indicators with variations , beautiful appearance  , so I can make 10 more EAS  AND 10 TIMES MORE MONEY.?
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