to go long at undervalue or not yet overvalue? Which has a higher probability winning

Hi guys,

I wish to ask the above question. As I had invited a value programmer to program my system for me. I had come across a consistent problem that my system has. When PA (price action) breaks for the resistance trendline. Stoch was already above 50 and nearing 80 so this is overbought. So the EA can't initiate the order but Slow Stoch (20,3,12) was not yet 100.

However it would be ideal if price were to break through the resistance line and Stoch is at oversold meaning price is undervalue. Then the probability of the price tanking down is low.

So which is a better probability code that I should adapt?

It sounds like you're looking for your stoch to not only operate as a ranging indicator, but as a breakout/trend indicator. No indicator can indicate everything...if that makes sense. It also sounds like you're looking for your EA to trade everything. I've long abandoned indicators and automated trading, but why add the risk of putting in an iffy buy logic? If you're looking to capture the breakout and buy when the stoch is overbought, you're setting up for failure when the market's only ranging. My opinion is to have 2 EA's, one trading a ranging market, one trading the breakout. Using proper money management and solid buy/sell logics, you should be fine.