Stochastic Oversold-Overbought | Forex Factory

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Stochastic Oversold-Overbought

  • #1
  • First Post: Aug 1, 2019 1:26pm Aug 1, 2019 1:26pm
Hi,

I have a problem with the stochastic indi, I suppose that is the same problem that many people have.

I love the stochastic indicator, I use a similar strategy than the FF Thread "Escalator Pips" just Google it if you want to find the whole system.

Anyway the system uses the stochastic on different time frames; it looks at the slope of the indicator not at the crossover. Trades on the 15 min chart and looks at the stochastic on the following time frames: 15-30-1H-4H

In any case the problem that I found with the stochastic especially when you use it on multiple time frames is that when the indicator reaches oversold or overbought levels and stays there the indicator starts to do funny things since the indicator is bounded and cannot go up or down more it changes direction when it should not.

My question is that since is such a popular indicator if anyone has found a solution for this. Maybe has created a similar indicator without that problem or there is a similar indicator that does not have that issue please share the indi or advice

Thanks
Kind regards
  • #2
  • Edited 4:02pm Aug 1, 2019 3:46pm | Edited 4:02pm
Quoting Frag8383
My question is that since is such a popular indicator if anyone has found a solution for this.
The solution is to learn price action, structure, supply + demand, liquidity areas and multi time frame analysis. All of this is visible on a naked candlestick chart.

Stochastic is a great momentum indicator, but only if you use it solely as a filter for all of the above. You can use it to prevent you taking buy or sells when higher TF momentum has turned. Also as a heads up price might be getting ready to reverse direction.

It is potentially useful on mutiple TF's but only W1/D1/H4. Anything lower will get you chopped to pieces as you've already noticed.
  • #3
  • Aug 1, 2019 6:57pm Aug 1, 2019 6:57pm
Quoting C-12
{quote} The solution is to learn price action, structure, supply + demand, liquidity areas and multi time frame analysis. All of this is visible on a naked candlestick chart. Stochastic is a great momentum indicator, but only if you use it solely as a filter for all of the above. You can use it to prevent you taking buy or sells when higher TF momentum has turned. Also as a heads up price might be getting ready to reverse direction. It is potentially useful on mutiple TF's but only W1/D1/H4. Anything lower will get you chopped to pieces as you've...
Thanks for your reply but is off topic.

I use market structure and multi time frame analysis, I don’t use price action (I use it on my own way not the typical) and I don’t get supply and demand, I can show thousands charts with pullbacks on low volume that they do not work and many areas of support and resistance that people love to use and they are suppose to hold and the don’t do, to be honest I don’t believe in support and resistance or supply and demand zones but I wish that someone could give me clear rules about volume but they are always well in this case and they make an excuse and then they take you to a place that it did work so but again I think that volume is very important and I use it but only to get out of positions. I follow price and specially momentum.

In any case your reply does not help, is like I ask you for a motor garage to repair my car and you tell me that by walking I can go anywhere
  • #4
  • Aug 2, 2019 1:34am Aug 2, 2019 1:34am
Quoting Frag8383
{quote}In any case your reply does not help, is like I ask you for a motor garage to repair my car and you tell me that by walking I can go anywhere
I'm merely pointing you in the direction so you can fix your own car.

The market is a living and breathing beast and there's no magic indicator combination that will make you money from it.

I've no idea how I end up getting dragged into these threads. I get done over every time. I need to change my FF homepage link so I don't see latest threads.
  • #5
  • Aug 2, 2019 4:27am Aug 2, 2019 4:27am
Quoting C-12
{quote} I'm merely pointing you in the direction so you can fix your own car. The market is a living and breathing beast and there's no magic indicator combination that will make you money from it. I've no idea how I end up getting dragged into these threads. I get done over every time. I need to change my FF homepage link so I don't see latest threads.
jajajaja

I see that you are very popular here at FF and hvae a thread of 300 pages +

You can make a summary here of the thread
  • #6
  • Aug 3, 2019 8:33pm Aug 3, 2019 8:33pm
Quoting C-12
{quote} I'm merely pointing you in the direction so you can fix your own car. The market is a living and breathing beast and there's no magic indicator combination that will make you money from it. I've no idea how I end up getting dragged into these threads. I get done over every time. I need to change my FF homepage link so I don't see latest threads.
C-12 have you got any skills on programming? If you may be able to help me after all jeejjeje

I have a volume indicator that I need modifiyng. Please find attached the indicator.

Currently what it does is color the bars when the volume is above a moving average, what I will like is for the bar to be colored if is above the moving average and the volume is also above previous bar volume, easy and simple!!!!! so the volume that is above the ma but not above the previous bar volume will not be colored

Thanks
Attached File(s)
File Type: mq4 VolumeAverage_v1.mq4   4 KB | 242 downloads
  • #7
  • Last Post: Aug 4, 2019 5:56am Aug 4, 2019 5:56am
Quoting Frag8383
{quote} C-12 have you got any skills on programming? If you may be able to help me after all jeejjeje I have a volume indicator that I need modifiyng. Please find attached the indicator. Currently what it does is color the bars when the volume is above a moving average, what I will like is for the bar to be colored if is above the moving average and the volume is also above previous bar volume, easy and simple!!!!! so the volume that is above the ma but not above the previous bar volume will not be colored Thanks {file}
Zero coding skills unfortunately. I'm sure someone in the Platform Tech section will be able to.
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