DSL - Stochastic - MetaTrader 5 Script - MQL5 #20035 - 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 generated when %K crosses the three-period moving average (called %D).

The DSL (Discontinued Signal Line) version of the Stochastic indicator does not use moving averages to process signals in the classic 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_-_tema_macd.mq5 (10.75 KB)

Source: MQL5 #20035