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Stochastic with Noise Reduction [ ru ]

by Dr.Hamdi Boukamcha
Name:
Stochastic with Noise Reduction [ ru ]
Author: Svinozavr (2009.11.23 12:07)
Rating: 10
Downloaded: 5043
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Stochastic with Noise Reduction [ ru ]   _StochNR.mq4 (3.4 Kb) View
Stochastic with Noise Reduction [ ru ]   StochNR.mqh (875 bytes) View

Description:

Standard Stochastic Oscillator with sensitivity feature.

It has the same parameters, as a standard Stochastic, but there is an additional “sensivity” parameter (Sens in the parameters window)

It allows to consider oscillations only below some predefined threshold, specified in points. This way we can reduce a lot of false signals.

The classical Lane Stohastic locates the current price between a maximum and a minimum prices for some number of bars, defined by %K (Kperiod) value, and it doen’t distingush the difference between extremums, for example 1 point or 100 points. For these two cases the results will be the same, and we will get the overbought/oversold signals.

But using some threshold, we can consinder only significiant oscillations.
At Fig. 1 (EURUSD, 1M), the price chart, standard stochastic and the indicator proposed are presented.

Image:

Stochastic with Noise Reduction [ ru ]

Fig 1.

The indicator fields is the same as for iStochastic, the difference is that there is an additional parameter Sens – sensivity.

The output buffers are the same: 0-Stochastic value itself, 1-signal line.

double iCustom(string symbol, int timeframe, "_StochNR", int %Kperiod, int %Dperiod, 
int slowing, int method, int price_field, int Sens, int mode, int shift); // StochNR added new Sens field

double iStochastic(string symbol, int timeframe, int %Kperiod, int %Dperiod, 
int slowing, int method, int price_field, int mode, int shift) // standard stochastic

For a practical use, it is possible to calll it as specified above, but better to perform it in another way. Just add some code to yours Stoch function:

double Stoch(int Kperiod, int Slowing, int PriceFild, double sens, int i) {  
   // maximal and minimal prices
   double max,min,c;
   for(int j=i; j<i+Slowing; j++) {
      if(PriceFild==1) { // по Close
         max+=Close[ArrayMaximum(Close,Kperiod,j)];
         min+=Close[ArrayMinimum(Close,Kperiod,j)];
        }
      else { // по High/Low
         max+=High[ArrayMaximum(High,Kperiod,j)];
         min+=Low[ArrayMinimum(Low,Kperiod,j)];
        }
      c+=Close[j];
     }

   double delta=max-min;
   if(delta<sens) {
      sens/=2;
      max+=sens; min-=sens;
     }
   delta=max-min;
   if(delta==0) double s0=1;
   else s0=(c-min)/delta;

   return(100*s0);
  }

It’s clear, that if you need a signal line, you need an additional moving average of its value. Another way is to get it from the iCustom’s 1st buffer, but it will be slow.

As you see, now the name is more informative, there is a price calculation type. If sensivity is defined greater than 0, its value is added to the oscillator’s name.

 

Editor’s remark:

Note that it’s a mirror translation of the original Russian version.

If you have any questions to the author, suggestions or comments, it’s better to post them there.

If you have found this code useful for trading or educational purposes, don’t forget to thank author.

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