Stochastic Oscillator - Page 31

fxbs · #**301** (**permalink**) 07-21-2009, 07:56 PM

Quote:

Originally Posted by s5804

Hello

put a Stochastic (8, 3, 1) on EUR/USD 5M and watch how the K line is sometimes on full 100.0 or min 0.0 for many bars.

This is strange!

According to the stochastic formula to get 100.0, the
(recent close - lowest low n) / (highest high n - lowest low n) > 1.0

This means that resent close must be equal or higher that highest high n.
However this is occasionally one bar, but rarely for many bars in a row.
After checking the bars very carefully maybe the recent bars high was the highest, but the recent close is bellow the bars high...?

The Stochastic.mq4 code looks correct
for(k=(i+Slowing-1);k>=i;k--)
{
sumlow+=Close[k]-LowesBuffer[k];
sumhigh+=HighesBuffer[k]-LowesBuffer[k];
}

Therefore I have no idea why the chart is showing this long periods of 100.0 or 0.0.

I appreciated very much for help to understand what is going on.
Thank you in advance

do you mean " long periods of 100.0 or 0.0." when sto price field cl-cl?

s5804 · #**302** (**permalink**) 07-21-2009, 09:17 PM

I use close-close.

Your picture demonstrates the 100.0 and 0.0 periods.

Attached is a picture I just made from EUR/USD with stoch 8,3,3 cl-cl setting.
Only the K line is visible.

I can't get my head around why the K line bottom on 0.0 when the recent close is not the lowest low of the period.

fxbs · #**303** (**permalink**) 07-21-2009, 10:01 PM

Quote:

Originally Posted by s5804

I use close-close.
I can't get my head around why the K line bottom on 0.0 when the recent close is not the lowest low of the period.

is it not?
sto cl-cl hhll.gif

hhll & cc:
sto cl-cl hhl2l.gif

s5804 · #**304** (**permalink**) 07-21-2009, 10:11 PM

I am guessing the meaning of cl-cl (can't find it in the manual)

cl-cl means that the stock formula is using the highest close and lowest close, instead of the highest high and highest low.

I can verify this with my own calculations of, K% lines with smoothing 1.
However how is the smoothing calculated?

Example,
K% values for 8,3,1 are, 0.6428, 0.5, 0.0
To get the smoothed value for K% 8,3,3 on shall 3 period SMA of K% above.

(0.6428 + 0.5 + 0.0) / 3 = 0.3809

However the Meta Trade 4 chart has the value 0.4285

What am I missing with the smoothing?

s5804 · #**305** (**permalink**) 07-21-2009, 10:23 PM

From the code I now understand how the smoothing is done

while(i>=0)
{
double sumlow=0.0;
double sumhigh=0.0;
for(k=(i+Slowing-1);k>=i;k--)
{
sumlow+=Close[k]-LowesBuffer[k];
sumhigh+=HighesBuffer[k]-LowesBuffer[k];
}
MainBuffer[i]=sumlow/sumhigh*100;
i--;
}

dividing the sum of low with the sum of highs is something else than an SMA.

I am curious is the Meta Trader Stochastic.mq4 very special or is this approach common in most other charting products.
The smoothing seems to be far of from the normal documentation about full stochastic.

THX

fxbs · #**306** (**permalink**) 07-21-2009, 10:57 PM

everyting right with mt4 sto:
stock sto (mt4 custom ind folder) w price cc mod
or u can do:

PHP Code:


			
  KFull[i] = iStochastic(NULL,TimeFrame,KPeriod,DPeriod,Slowing,MAMethod,PriceField,Ln1Mode,y);

(double iStochastic( string symbol, int timeframe, int %Kperiod, int %Dperiod, int slowing, int method, int price_field, int mode, int shift)

s5804 · #**307** (**permalink**) 07-22-2009, 08:24 AM

Quote:

Originally Posted by fxbs

everyting right with mt4 sto:

I agree. Just another endless example of where proper documentation (with beginners in mind) would have helped.

Thanks for bringin me up to speed.

fxbs · #**308** (**permalink**) 07-22-2009, 08:42 AM

most of the time- no documentation whatsoever
like this-http://codebase.mql4.com/ru/5775 nobody knows what it is (and where it came from)

camisa · #**309** (**permalink**) 07-22-2009, 11:18 AM

Quote:

Originally Posted by fxbs

most of the time- no documentation whatsoever
like this-http://codebase.mql4.com/ru/5775 nobody knows what it is (and where it came from)

it had tried it but it repaints :P

demons19 · #**310** (**permalink**) 07-28-2009, 04:36 AM

Not sure if this is somewhere on the site but I'm hoping someone could help me with an alert.
I am using the normal stochastic indicator (14,3,3) and what I would like is to have an alert when both lines are in OB/OS (20/80) at the close of 3 consecutive bars.

Would anyone be able to help?
Thanks