The stochastics indicator is also a price action indicator.It is compared to the price indicator, posted in the chart below. 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.
stochastics will result in demise of charlatan price action educators..Avoid quacks and charlatan educators.
make up your own mind ,I am providing evidence
just put this on mt4 and compile
//| best price action course free tradeciety Stochastic.mq4 |
//| Copyright 2005-2014, MetaQuotes Software Corp. |
//| tradeciety http://www.mql4.com |
//+------------------------------------------------------------------+
#property copyright "2005-2014, MetaQuotes Software Corp."
#property link "http://www.mql4.com"
#property description "Stochastic Oscillator"
#property strict
#property indicator_separate_window
#property indicator_minimum 0
#property indicator_maximum 100
#property indicator_buffers 2
#property indicator_color1 LightSeaGreen
#property indicator_color2 Red
#property indicator_level1 20.0
#property indicator_level2 80.0
#property indicator_levelcolor clrSilver
#property indicator_levelstyle STYLE_DOT
//--- input parameters
input int InpKPeriod=28; // K Period
input int InpDPeriod=6; // D Period
input int InpSlowing=10; // Slowing
//--- buffers
double ExtMainBuffer[];
double ExtSignalBuffer[];
double ExtHighesBuffer[];
double ExtLowesBuffer[];
//---
int draw_begin1=0;
int draw_begin2=0;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int OnInit(void)
{
string short_name;
//--- 2 additional buffers are used for counting.
IndicatorBuffers(4);
SetIndexBuffer(2, ExtHighesBuffer);
SetIndexBuffer(3, ExtLowesBuffer);
//--- indicator lines
SetIndexStyle(0,DRAW_LINE);
SetIndexBuffer(0, ExtMainBuffer);
SetIndexStyle(1,DRAW_LINE);
SetIndexBuffer(1, ExtSignalBuffer);
//--- name for DataWindow and indicator subwindow label
short_name="Sto("+IntegerToString(InpKPeriod)+","+IntegerToString(InpDPeriod)+","+IntegerToString(InpSlowing)+")";
IndicatorShortName(short_name);
SetIndexLabel(0,short_name);
SetIndexLabel(1,"Signal");
//---
draw_begin1=InpKPeriod+InpSlowing;
draw_begin2=draw_begin1+InpDPeriod;
SetIndexDrawBegin(0,draw_begin1);
SetIndexDrawBegin(1,draw_begin2);
//--- initialization done
return(INIT_SUCCEEDED);
}
//+------------------------------------------------------------------+
//| Stochastic oscillator |
//+------------------------------------------------------------------+
int OnCalculate(const int rates_total,
const int prev_calculated,
const datetime &time[],
const double &open[],
const double &high[],
const double &low[],
const double &close[],
const long &tick_volume[],
const long &volume[],
const int &spread[])
{
int i,k,pos;
//--- check for bars count
if(rates_total<=InpKPeriod+InpDPeriod+InpSlowing)
return(0);
//--- counting from 0 to rates_total
ArraySetAsSeries(ExtMainBuffer,false);
ArraySetAsSeries(ExtSignalBuffer,false);
ArraySetAsSeries(ExtHighesBuffer,false);
ArraySetAsSeries(ExtLowesBuffer,false);
ArraySetAsSeries(low,false);
ArraySetAsSeries(high,false);
ArraySetAsSeries(close,false);
//---
pos=InpKPeriod-1;
if(pos+1<prev_calculated)
pos=prev_calculated-2;
else
{
for(i=0; i<pos; i++)
{
ExtLowesBuffer[i]=0.0;
ExtHighesBuffer[i]=0.0;
}
}
//--- calculate HighesBuffer[] and ExtHighesBuffer[]
for(i=pos; i<rates_total && !IsStopped(); i++)
{
double dmin=1000000.0;
double dmax=-1000000.0;
for(k=i-InpKPeriod+1; k<=i; k++)
{
if(dmin>low[k])
dmin=low[k];
if(dmax<high[k])
dmax=high[k];
}
ExtLowesBuffer[i]=dmin;
ExtHighesBuffer[i]=dmax;
}
//--- %K line
pos=InpKPeriod-1+InpSlowing-1;
if(pos+1<prev_calculated)
pos=prev_calculated-2;
else
{
for(i=0; i<pos; i++)
ExtMainBuffer[i]=0.0;
}
//--- main cycle
for(i=pos; i<rates_total && !IsStopped(); i++)
{
double sumlow=0.0;
double sumhigh=0.0;
for(k=(i-InpSlowing+1); k<=i; k++)
{
sumlow +=(close[k]-ExtLowesBuffer[k]);
sumhigh+=(ExtHighesBuffer[k]-ExtLowesBuffer[k]);
}
if(sumhigh==0.0)
ExtMainBuffer[i]=100.0;
else
ExtMainBuffer[i]=sumlow/sumhigh*100.0;
}
//--- signal
pos=InpDPeriod-1;
if(pos+1<prev_calculated)
pos=prev_calculated-2;
else
{
for(i=0; i<pos; i++)
ExtSignalBuffer[i]=0.0;
}
for(i=pos; i<rates_total && !IsStopped(); i++)
{
double sum=0.0;
for(k=0; k<InpDPeriod; k++)
sum+=ExtMainBuffer[i-k];
ExtSignalBuffer[i]=sum/InpDPeriod;
}
//--- OnCalculate done. Return new prev_calculated.
return(rates_total);
}
//+------------------------------------------------------------------+
