Join our fan page
- Views:
- 5991
- Rating:
- Published:
- 2018.02.12 17:10
-
Need a robot or indicator based on this code? Order it on Freelance Go to Freelance
The Stochastic Oscillator is a Momentum indicator comparing the closing price of a security to the range of its prices over a certain period of time. The sensitivity of the oscillator to market movements is reducible by adjusting that time period or by taking a moving average of the result.
The Stochastic Oscillator is calculated using the following formula:
Where:
- C - the most recent closing price.
- L(period) - the low of the (period) previous trading sessions.
- H(period) - the highest price traded during the same (period)-sessions period.
- %K - the current market rate for the currency pair.
- %D - (signal)-period moving average of %K.
The general theory serving as the foundation for this indicator is that in a market trending upward, prices will close near the high, and in a market trending downward, prices close near the low. Transaction signals are created when the %K crosses through a three-period moving average, which is called the %D.
The usual average that is used for stochastic calculation is simple moving average (SMA). This version allows you to use any of the 4 basic types of averages (default is SMA, but you can use EMA, SMMA or LWMA too) - some are "faster" then the default version (like EMA and LWMA versions) and SMMA is a bit "slower" but this way you can fine tune the "speed" to signals ratio.
![T3 Stochastic Momentum Index](https://c.mql5.com/i/code/indicator.png)
This version is doing the calculation in the same way as the original Stochastic Momentum Index, except in one very important part: instead of using EMA (Exponential Moving Average) for calculation, it is using T3. That produces a smoother result without adding any lag.
![Stochastic Momentum Index](https://c.mql5.com/i/code/indicator.png)
The Stochastic Momentum Index (SMI) was developed by William Blau and was introduced in the January 1993 issue of Technical Analysis of Stocks & Commodities magazine. It incorporates an interesting twist on the popular Stochastic Oscillator. While the Stochastic Oscillator provides you with a value showing the distance the current close is relative to the recent x-period high/low range, the SMI shows you where the close is relative to the midpoint of the recent x-period high/low range.
![Fisher RVI](https://c.mql5.com/i/code/indicator.png)
This indicator has an addition of Fisher Transform to the RVI. The Fisher Transform enables traders to create a nearly Gaussian probability density function by normalizing prices. In essence, the transformation makes peak swings relatively rare events and unambiguously identifies price reversals on a chart. The technical indicator is commonly used by traders looking for extremely timely signals rather than lagging indicators.
![Inverse Fisher RVI](https://c.mql5.com/i/code/indicator.png)
The Inverse Fisher Transform normalizes the values in the desired range (-1 to +1 in this case) which helps in assessing the overbought and oversold market conditions.