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

Use a randomized version of the calculation with an adaptive (variable) period instead of using a fixed-length average calculation. This version uses the adaptive backtracking method

adaptive backtracking

Adaptive Lookback is a true market driven indicator that determines the period of a variable lookback of many different indicators, rather than a traditional fixed period chart.

It is based on the frequency of market swings—the time between swing highs or swing lows. A swing high is defined as two consecutive higher highs followed by two consecutive lower highs; a swing low is defined as a low defined by two consecutive lower lows followed by two consecutive higher lows. Since swing points are often accompanied by reversals, they occur more often in volatile markets than trends.

The adaptive lookback period is determined as:

This allows variable lookback periods to grow in calm or trending markets and to shorten in range-bound and choppy markets. For a trend following system, you want the opposite to prevent being zigzag, so this indicator and its use as a period correction is more suitable for short-term traders and counter-trend systems (so, in all systems, the maximum speed of reaction and signal is required).

The random slowing down (smoothing) parameter remains original - ie: it is not adaptive. This is done to give you more precise control over the Stochastic (because if the smoothing is also adaptive, you won't be able to control the smoothness of the generated Stochastic)

Attachment download

📎 alb_stochastic.mq5 (11.32 KB)

Source: MQL5 #22230