|
|||||||
| Register in Forex TSD! | |
|
Trading Systems Leaders in this forum (automated trading systems) are winning more than 3000 pips in a month (30000$ investing one lot every time). Click here to register and get more information |
|
![]() |
|
|
LinkBack (6) | Thread Tools | Display Modes |
|
|||
|
Stochastic Oscillator
I tryed to collect everything about one indicator: Stochastic Oscillator.
"Technical Analysis from A to Z": Code:
Overview Sto.chas.tic (sto kas'tik) adj. 2. Math. designating a process having an infinite progression of jointly distributed random variables. --- Webster's New World Dictionary The Stochastic Oscillator compares where a security's price closed relative to its price range over a given time period. Code:
Interpretation The Stochastic Oscillator is displayed as two lines. The main line is called "%K." The second line, called "%D," is a moving average of %K. The %K line is usually displayed as a solid line and the %D line is usually displayed as a dotted line. There are several ways to interpret a Stochastic Oscillator. Three popular methods include: Buy when the Oscillator (either %K or %D) falls below a specific level (e.g., 20) and then rises above that level. Sell when the Oscillator rises above a specific level (e.g., 80) and then falls below that level. Buy when the %K line rises above the %D line and sell when the %K line falls below the %D line. Look for divergences. For example, where prices are making a series of new highs and the Stochastic Oscillator is failing to surpass its previous highs. Code:
Calculation The Stochastic Oscillator has four variables: %K Periods. This is the number of time periods used in the stochastic calculation. %K Slowing Periods. This value controls the internal smoothing of %K. A value of 1 is considered a fast stochastic; a value of 3 is considered a slow stochastic. %D Periods. This is the number of time periods used when calculating a moving average of %K. The moving average is called "%D" and is usually displayed as a dotted line on top of %K. %D Method. The method (i.e., Exponential, Simple, Time Series, Triangular, Variable, or Weighted) that is used to calculate %D. The formula for %K is: Stoch_calc.jpg For example, to calculate a 10-day %K, first find the security's highest-high and lowest-low over the last 10 days. As an example, let's assume that during the last 10 days the highest-high was 46 and the lowest-low was 38--a range of 8 points. If today's closing price was 41, %K would be calculated as: Stochcalc1.jpg The 37.5% in this example shows that today's close was at the level of 37.5% relative to the security's trading range over the last 10 days. If today's close was 42, the Stochastic Oscillator would be 50%. This would mean that that the security closed today at 50%, or the mid-point, of its 10-day trading range. The above example used a %K Slowing Period of 1-day (no slowing). If you use a value greater than one, you average the highest-high and the lowest-low over the number of %K Slowing Periods before performing the division. A moving average of %K is then calculated using the number of time periods specified in the %D Periods. This moving average is called %D. The Stochastic Oscillator always ranges between 0% and 100%. 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. |
|
|||
|
Divergence using Stochastic: some general information about it was collected on this thread http://www.forex-tsd.com/indicators-...indicator.html and some of them are on this post.
painting the past: Stochastic is not paiting the past. But we need in some systems for this indicator to be painted the past. Read some exotic explanation/request ASCTrend system how to understand the price movement using 3 Stochastic indicators: - template attached (M5 timeframe). It was taken from asctrend M5 informational template from elite section here. - some other informational templates about price movement understanding are here. Multi Timeframe Stochastic: - MTF stochastic momentum indicator is here; - MTF Stochastic is here, and here, and here, and here, and here, and here, and here (#MTF Stochastic v. 2.0); - Stochastic_Standard_4TF_cja updated indicator: this post. Stochastic with alert is here, #MTF_Stochastic1.1 with alert is here; #MTF Stochastic v2.0 with alert is here; alert on crossing is here, stochastic witrh alert EA is here, stochastic with alert thread. - Many Stochastic indicators in one page collected: is here. StochHistogram indicator is here. - StochHistogram indicators with alert (2 indicators) are on this page. - Color Stochastic indicator is here and here. - StochCandles_80_20 indicator is here. Last edited by newdigital : 06-21-2008 at 05:53 AM. Reason: Stochastic_Standard_4TF_cja link added |
|
|||
|
Stochastic Momentum Indicator (Index):
- original thread is here; - fixed indicator is here. Stochastic filter indicator is here. Stochastic Bar type MTF indicators: original thread. On Chart Stochastic: indicator on the main window. Stochastic tape indicator is on this page. Stoch Signal: thread with good indicator by cja. AllStochastics indicator: good MTF indicator developed by Igorad. Blau's double smoothed stochastic is on this post. Last edited by newdigital : 07-09-2008 at 06:49 PM. Reason: Blau's double smoothed stochastic |
|
|||
|
EAs:
- Stochastic EA is here; - Stochastic v1 EA is here; - stoch_21 EA is here; - Stochastic Sample EA is here; - Stoch-Hellkas EA is here. -StepStochCross EA. Elite section thread is here. - Advice EA-Stoc Guru: public thread. - Stochastic with RSI filter - StochEA: public thread. - StochEA v0.1: original thread. - StoIK EA - Stoch\I-Trend: thread with few versions of the EA using i-trend indicator. Trading systems based on Stochastic: - A simple idea trading system is here; - Stoch trading system is here and EA is here; - ZerolagStochs system is here; - Stochastic in BrainSystem: the thread is here and here; - Cycles witch stochastic: elite section thread. All John Ehlers Indicators is here (including Fisher Transform over Stochastic Oscillator, and so on). Reverse Divergence using Stochastic indicator is here. Stoch Signal: thread about how Stochastic's working with some good indicators is here. Overbought/oversold condition with Stochastic: small thread with good indicators is here. Last edited by newdigital : 05-20-2008 at 06:17 AM. |
|
||||
|
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.p...tic_oscillator Especially for Slow versus Fast versus Full Stochastics. This following phrase of the first post had me wondering for a moment: Quote:
Attached is a chart example that should make this point immediately clear. Upper stoch is fast, lower stoch is slow. Take care! |
|
||||
|
I have got this picture from another topic:How to use Support and Resistance Effectively, it is called TTM Stochastic and it looks very smooth and intersting.Does anybody have the formula of TTM Stoch indicator?
![]() Shot at 2007-07-02 |
![]() |
| Thread Tools | |
| Display Modes | |
|
|
LinkBacks (?)
LinkBack to this Thread: http://www.forex-tsd.com/setup-questions/8024-stochastic-oscillator.html
|
|||
| Posted By | For | Type | Date |
| StochCandles - MQL4 代ç 基地 | Post #30 | Refback | 05-07-2008 03:53 AM |
| StochCandles - MQL4 Code Base | Post #30 | Refback | 05-04-2008 08:37 AM |
| StochCandles - MQL4 Code Base | Post #30 | Refback | 05-04-2008 07:29 AM |
| StochCandles - MQL4 Code Base | Post #30 | Refback | 03-11-2008 06:12 AM |
| ¡ÚMT4¡ÛMetaTrader Part8¡Ú¥á¥¿¥È¥ì¡¼¥À¡¼¡Û - MetaTrader¤Þ¤È¤áWiki | This thread | Refback | 02-27-2008 06:20 AM |
| yahya.nuruddin's bookmarks tagged with | This thread | Refback | 09-18-2007 11:18 AM |
Similar Threads
|
||||
| Thread | Thread Starter | Forum | Replies | Last Post |
| Stochastic | swall | Indicators - Metatrader 4 | 10 | 09-09-2007 08:58 PM |
| I need Stochastic Oscillator with alert/signal | 200 | Indicators - Metatrader 4 | 1 | 05-31-2007 02:19 PM |
| Alert For Stochastic Oscillator Please!! | forexdude | Indicators - Metatrader 4 | 2 | 10-29-2006 03:06 PM |
| GC Oscillator | forexts | Questions | 4 | 07-21-2006 01:03 PM |
| Oscillator | 006 | Expert Advisors - Metatrader 4 | 2 | 01-28-2006 04:49 PM |