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Showing results for tags 'stochastic'.
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This indicator is written by VTL. The indicator is a trend following indicator. This is momentumtype indicator so you know how to buy or sell in the right time. You can use it to catch moving in trend market.May be in range market it is not good to use. The indicator use Stochastic, RSI to generate signal. This indicator uses Stochastic with periods 8,3,3 and RSI 3 cross RSI 13. it use a confirmation trend macd cross zero. If both are crossing together then you will shall view the signal to open position so you just need to open position. You can set sl to arrow of signal in the chart. And you can close position when you look opposite signal. While use the indicator you can look two messages in left of chart. condition still good : it mean market momentum is keeping to right direction. so, you can keep position while you can look this messages. overbought,,dont op but take profit : when market is overbouth or oversold, you can look this messages. it is good time to take profit or start trailling to keep profit. please use it avobe 30min time frame to catch good moving. EnhancedMACD.zip

// Sto Divergence TrendLine // Author: MARKPLEX // version: 1.0 // Author: aaa // version: 2.0 // Date: 20091129 // added: // divergence on top + // Line.Color.Top + Line.Color.Bot + Line.Size + Plot.Sto in inputs From http://markplex.com/tutorial4.php  Sto Divergence TrendLine.txt Sto Divergence TrendLine.pla Sto Divergence TrendLine.ELD

In this article we will discuss about a widespread, wellknown key element of technical analysis. Why do you think technical analysis especially some elements work so well for financial markets?Why do you think Fibonacci levels are usually strictly followed?Because thousands and billions of traders and computer programs for trading use these elements. This way everybody acts the same at the same time… This is why we decided to present in the category of technical analysis, the most used and wellknown methods of predicting financial evolution. These methods are easy to understand and are very efficient. We will discuss about the Stochastic Oscillator. We will find out what the Stochastic Oscillator is and how it is calculated. We will use it in our charts and we will see how it acts. We will discover how useful the Stochastic Oscillator is and, at the end, we will draw the conclusions. We will use the Stochastic Oscillator daily in our analyzing and trading system. 1. What is the “Stochastic Oscillator”? The stochastic oscillator is a momentum indicator used in technical analysis, introduced by George Lane in the 1950s, to compare the closing price of a commodity to its price range over a given time span. Closing levels that are consistently near the top of the range indicate accumulation (buying pressure) and those near the bottom of the range indicate distribution (selling pressure). The idea behind this indicator is that prices tend to close near their past highs in bull markets, and near their lows in bear markets. Transaction signals can be spotted when the stochastic oscillator crosses its moving average. Two stochastic oscillator indicators are typically calculated to assess future variations in prices, a fast (%K) and slow (%D). Comparisons of these statistics are a good indicator of speed at which prices are changing or the Impulse of Price. %K is the same as Williams’s %R, though on a scale 0 to 100 instead of 100 to 0, but the terminology for the two are kept separate. 2. How is it calculated? This is the method of calculating the stochastic oscillator, and the values for %K and %D. A 14day %K (14period StochasticOscillator) would use the most recent close, the highest high over the last 14 days and the lowest low over the last 14 days. The number of periods will vary according to the sensitivity and the type of signals desired. As with RSI, 14 is a popular number of periods for calculation %K tells us that the close (115.38) was in the 57th percentile of the high/low range, or just above the midpoint. Because %K is a percentage or ratio, it will fluctuate between 0 and 100. A 3day simple moving average of %K is usually plotted alongside to act as a signal or trigger line, called %D. The %K and %D oscillators range from 0 to 100 and are often visualized using a line plot. Levels near the extremes 100 and 0, for either %K or %D, indicate strength or weakness (respectively) because prices have made or are near new Nday highs or lows. There are two well known methods for using the %K and %D indicators to make decisions about when to buy or sell stocks. The first involves crossing of %K and %D signals, the second involves basing buy and sell decisions on the assumption that %K and %D oscillate. In the first case, %D acts as a trigger or signal line for %K. A buy signal is given when %K crosses up through %D, or a sell signal when it crosses down through %D.Such crossovers can occur too often, and to avoid repeated whipsaws one can wait for crossovers occurring together with an overbought/oversold pullback, or only after a peak or trough in the %D line. If price volatility is high, a simple moving average of the Stoch %D indicator may be taken. This statistic smoothes out rapid fluctuations in price. In the second case, some analysts argue that %K or %D levels above 80 and below 20 can be interpreted as overbought or oversold. On the theory that the prices oscillate, many analysts including George Lane, recommend that buying and selling be timed to the return from these thresholds. In other words, one should buy or sell after a bit of a reversal. Practically, this means that once the price exceeds one of these thresholds, the investor should wait for prices to return through those thresholds (e.g. if the oscillator were to go above 80, the investor waits until it falls below 80 to sell). The third way that traders will use this indicator is to watch for divergences where the Stochastic trends in the opposite direction of price. As with the RSI this is an indication that the momentum in the market is waning and a reversal may be in the making. For further confirmation many traders will wait for the cross below the 80 or above the 20 line before entering a trade on divergence. The chart below illustrates an example of where a divergence in stochastics relative price forecasted a reversal in the price's direction. 3. Chart examples for Dow and emini S&P 500. In the following examples we will use as parameters other values than the standard ones. We decided to do that because our research proved that these new values are used more and numerous wellknown traders agree with them. This way the indicator has a higher precision. We will use the values of 5, 5 and 3 for %K, %D and the third parameter respectively. Here are some examples where we also used other elements of the technical analysis already explained. 1. First we have a daily chart of Dow Jones for the firs three months of 2006. On the chart we have marked minitrends lasting 12 weeks. Each trend follows the previsions given by the stochastic oscillator. During these three months there have been at least seven correct sets to be followed that could generate profit. 2. This chart presents the evolution for the period August October 2003. We can find the same setups and models. Follow closely the logic for each possible transaction. 3. The evolution of the market during June – August 2001, before the tragedy in New York: we can find nine correct sets to be trade and obtain profit. 4. Conclusions a) Correctly used and followed, the stochastic oscillator along other technical analysis and astrological analysis methods can offer complex and correct information for profitable transactions. b) Trading methods based only on the stochastic oscillator can be found and can work very well. These methods can be harmoniously correlated with other methods of financial analysis resulting in a complete and complex trading system approaching financial reality. c) We often use the stochastic oscillator amongst other various methods of analysis that we will describe later. Dharmik Team

Instantaneous TrendLine by John Ehlers Note: This indicator was written in EasyLanguage. Please refer to your users manual for importation instructions. Your comments and rating of this indicator is appreciated. Instantaneous TrendLine.txt
 41 replies

 ehlers
 moving average

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Req: Stochastic Alignment Alert for Different Time Frames  MT4.
P.W. posted a topic in Coding Forum
Hi everyone I am new to this forum and new to forex trading. I am looking for an indicator for MetaTrader 4 which gives an alert when stochastics for several time frames align and move in the same direction. Anybody has something like that? Cheers P. 
Following on the great work done by aaa on the divergence indicator; I wanted to know if someone could potentially help in creating an indicator which shows negative or reverse divergence. The attached indicator is a slight tweak from aaa's, and shows regular divergence only. The attached images show the negative divergence. // StochRSI Divergence TrendLine // Author: MARKPLEX // http://markplex.com/tutorial4.php // version: 1.0 // Author: aaa // version: 2.0 // Date: 20091129 // added: // divergence on top + // Line.Color.Top + Line.Color.Bot + Line.Size + Plot.Sto in inputs // inputs: // RSILength(9), StochLength(18), KLength(6), DLength(3), OverSold(20), OverBought(80), Length(20), LeftStrength(3), RightStrength(3), Line.Color.Top(yellow), Line.Color.Bot(white), Line.Size(2), Plot.stochrsi(1), AlertOn.Off(1); // variables: // DToscK(0), DToscD(0), oPivotPrice1(0), oPivotBar1(0), oPivotPrice2(0), oPivotBar2(0), oPivotPrice11(0), oPivotBar11(0), oPivotPrice12(0), oPivotBar12(0); value1 = FastKCustomEasy(RSI(C, RSILength),StochLength); DToscK = average(value1,KLength); DToscD = average(DToscK,DLength); Condition1 = Pivot( DToscK, Length, LeftStrength, RightStrength, 1, 1, oPivotPrice1, oPivotBar1 ) <> 1 AND ( oPivotBar1  RightStrength ) = 0 ; Condition11 = Pivot( DToscK, Length, LeftStrength, RightStrength, 1, 1, oPivotPrice11, oPivotBar11 ) <> 1 AND ( oPivotBar11  RightStrength ) = 0 ; Condition2 = Pivot( DToscK, Length, LeftStrength, RightStrength, 2, 1, oPivotPrice2, oPivotBar2 ) <> 1; Condition12 = Pivot( DToscK, Length, LeftStrength, RightStrength, 2, 1, oPivotPrice12, oPivotBar12 ) <> 1; If Condition1 and Condition2 // added condition2 = referecne future data AND L[oPivotBar2] >= L[oPivotBar1] AND DToscK[oPivotBar2] < DToscK[oPivotBar1] then Begin Value2 = TL_New(D[oPivotBar2], T[oPivotBar2], L[oPivotBar2], D[oPivotBar1], T[oPivotBar1], L[oPivotBar1]); TL_SetColor( Value2, Line.Color.Bot ); TL_SetSize( Value2, Line.Size ); if AlertOn.Off <> 0 then Alert( "Divergence in Bottom" ); End; If Condition11 and Condition12 // added condition12 referecne future data AND H[oPivotBar12] <= H[oPivotBar11] AND DToscK[oPivotBar12] > DToscK[oPivotBar11] then Begin Value12 = TL_New(D[oPivotBar12], T[oPivotBar12], H[oPivotBar12], D[oPivotBar11], T[oPivotBar11], H[oPivotBar11]); TL_SetColor( Value12, Line.Color.Top ); TL_SetSize( Value12, Line.Size ); if AlertOn.Off <> 0 then Alert( "Divergence in Top" ); End; condition3 = Pivot( DToscK, Length, LeftStrength, RightStrength, 1, 1, oPivotPrice1, oPivotBar1 ) <> 1 AND ( oPivotBar1  RightStrength ) = 0 ; condition32 = Pivot( DToscK, Length, LeftStrength, RightStrength, 1, 1, oPivotPrice11, oPivotBar11 ) <> 1 AND ( oPivotBar11  RightStrength ) = 0 ; condition4 = Pivot( DToscK, Length, LeftStrength, RightStrength, 2, 1, oPivotPrice2, oPivotBar2 ) <> 1; condition42 = Pivot( DToscK, Length, LeftStrength, RightStrength, 2, 1, oPivotPrice12, oPivotBar12 ) <> 1; If Condition3 and condition4 AND L[oPivotBar2] >= L[oPivotBar1] AND DToscK[oPivotBar2] < DToscK[oPivotBar1] then Begin Value2 = TL_New_SELF(D[oPivotBar2], T[oPivotBar2], DToscK[oPivotBar2], D[oPivotBar1], T[oPivotBar1], DToscK[oPivotBar1]); TL_SetColor( Value2, Line.Color.Bot ); TL_SetSize( Value2, Line.Size ); End; If Condition32 and Condition42 AND H[oPivotBar12] <= H[oPivotBar11] AND DToscK[oPivotBar12] > DToscK[oPivotBar11] then Begin Value12 = TL_New_SELF(D[oPivotBar12], T[oPivotBar12], DToscK[oPivotBar12], D[oPivotBar11], T[oPivotBar11], DToscK[oPivotBar11]); TL_SetColor( Value12, Line.Color.Top ); TL_SetSize( Value12, Line.Size ); End; Plot1( DToscK, "stochrsi", blue ); plot2( 20, "oversold", white); plot3(80, "overbought", white);

Tidal Wave (EasyLanguage) this indicator measures the velocity of the slow stochastic it will turn before the stoch turns it will show divergence before MACD does in the illustration, I have included the slow stochastic for your comparison. enjoy! TidalWave_beta_01.txt
 7 replies

 easylanguage
 oscillator

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Fisher Transform by John Ehlers The fisher transform indicator by John Ehlers is a range oscillator showing where today's price is within the past Ndays highest and lowest. It has some smoothing, plus what's known in mathematics as a fisher transform. The range position is similar to Stochastics and to Williams %R. The fisher transformation stretches out values near the Nday high and low to make large peaks so as to help highlight those extremes. The calculation is as follows: The prices used are the midpoint between the day's high and low (as in most of Ehlers' indicators). Today's price is located within the highest and lowest of those midpoints from the past N days, scaled to 1 for the low and 1 for the high. price = (high + low) / 2 price  Ndaylow raw = 2 *   1 Ndayhigh  Ndaylow This raw position is smoothed by a 5day EMA (see Exponential Moving Average) then a log form which is the fisher transform, before a final further 3day EMA smoothing. smoothed = EMA[5] of raw 1 + smoothed fisher = EMA[3] of log  1  smoothed The effect of the logarithm is to make “smoothed” values near 0 remain near there, but values near 1 and 1 grow greatly, thus highlighting extremities. A “smoothed” value of exactly +/1 would transform to +/infinity, so a clamp of 0.999 is applied, effectively limiting the final result to about +/7.5. Source: Kevin Ryde FisherTransform.txt FisherTransform_(MultiCharts).pla
 2 replies

 ehlers
 fisher transform

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