How can I determine the trend direction of an oscillator (whether the oscillator direction is up or down?) because I need this in my strategy.
Shall I just compare it to its MA even if it looks horizontal in some cases or trending in other cases as per these charts?
There are many approaches related to oscillators:
Look at the following thread for more examples: https://www.mql5.com/en/forum/12391
Forum on trading, automated trading systems and testing trading strategies
Sergey Golubev, 2013.06.03 18:07
So, just about this documentation Signals of the Oscillator Stochastic - some traders are using some more signals:
The main line is above some level (50%, 70% or 80%):
The main line is below some level (50%, 30% or 20%):
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 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: