Stochastic indicator. A curious observation. - page 5
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What then do you think the widening of the ENVELOPES channel hanging from the stochastic at the top can be interpreted as ? And its narrowing at the bottom ?
Have you seen the stochastic formula? Where is the asymmetry there?
If you don't believe the formulas, I can take the chart data for any period, REVERSE it and calculate the stochastic values using the same formulae as for the straight chart. If the stochastic is symmetrical, then all resulting values should be symmetrical about the50 axis. Do you agree with that? Would that convince you???
How then do you think you can interpret the widening of the ENVELOPES channel, suspended on the stochastic, in its upper part. And its narrowing at the bottom ?
Although there is a reasonable grain in any system.
I'm just worried about the idea of asymmetry... after all, the market will change and then it will become symmetrical...))
OK, Simka & Topor !
You almost convinced me. I am. It might be the envelope. I'll look into it.
Here's something I dug up in the storeroom.
Perhaps for lovers of stochastics this article will be of interest.
Perhaps for lovers of stochastics this article will be of interest.
In case anyone doesn't believe that stochastics have nothing to do with it, here's a picture for RSI.
RSI has nothing to do with it either. It's all about ENVELOPES.
When using Stochastic, it often happens that the EA shows a much higher percentage of profitable trades for long positions than for short ones. Or vice versa. It depends on the pair, situation (trend), settings, etc.
For example, in the two-year history of the n1 kiwi, with several hundreds of trades it turned out that the percentage of profitable short positions reaches sometimes 75-80% during optimization!
So I had an idea - to omit long positions when trading, implementing only short ones (the number of deals will decrease, but it is not a problem for a multicurrency Expert Advisor).
But how to implement it programmatically? Simply setting ONLY SHORT in PROPERTIES does not solve the problem for a good reason. We need LONG-transactions to be skipped instead of being swapped. Trailing Stop also greatly complicates things.
Without trailing stop, we could use trailing stops and Take Profit to track a prohibited LONG trade.
But with a trailing stop..... I don't even know how to approach the solution.
Apparently, we need to provide a block that imitates a prohibited trade. I've looked at examples, but haven't found anything similar.