DSL - Extended Stochastic - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resources

The Stochastic Oscillator is a momentum indicator that compares a security's closing price to its price range over a certain period of time. The sensitivity of the oscillator to market movements can be reduced by adjusting the time period or taking a moving average of the results.

The general theory underlying this indicator is that when the market is trending upward, the price will close near the highs, and when the market is trending downward, the price will close near the lows. A trading signal is created when %K crosses the three-period moving average (called %D).

A common average used for stochastic calculations is the simple moving average (SMA). This (extended) version allows you to use any of 4 basic types of averages (default is SMA, but you can also use EMA, SMMA or LWMA) - some are "faster" than the default ones (like the EMA and LWMA versions), while SMMA is a bit "slow", but this way you can fine-tune the ratio of "speed" to signal.

The DSL (Disrupted Signal Line) version of the Stochastic indicator does not use moving averages in the traditional signal way, but calculates the signal line based on the value of the Stochastic indicator. So, we have two things: a signal line and a level that can be used for overbought and oversold estimates.

Attachment download

📎 dsl_-_stochastic_extended.mq5 (15.2 KB)

Source: MQL5 #20036