Coding help required using oscillator for price action trading

• 04/21/2017 at 2:27 PM #32880
  ck1066

  Hi,

  How do I use an oscillator (stochastic or CCI) to determine a trend using price action.

  I need help coding the following, ideally based on 5m or 15m charts:

  Uptrend (higher lows and higher highs)

  1. current price is in the oversold area of the oscillator
  2. current price is higher than the previous oversold area

  Downtrend (lower highs and lower lows)

  1. Current price is in the overbought area of the oscillator
  2. current prices is lower than the previous overbought area

  See attached image which illustrates the above for an uptrend.

  

  ck1066

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  04/22/2017 at 7:07 PM #32970
  Nicolas

  For an uptrend, a rough idea would be to store the lowest low of price within last X periods when the oscillator leave its oversold area and then compare this value with the previous stored one.

  How do you want to display this information? uptrend=1 if new value is superior to the last one?

  

  Nicolas

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  04/23/2017 at 9:01 AM #33007
  ck1066

  Hi,

  I want the indicator to display the result as follows:

  0=no alert

  1=uptrend

  -1=downtrend

  

  ck1066

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  04/23/2017 at 10:29 AM #33013
  Nicolas

  That’s fine, I quickly code something that should be relevant to your query (an example of how it looks is attached). Here is the code:

  sto = stochastic[8,3] x = 8 //lookback period for find the lastest highest high or lowest low hh = highest[x](high) ll = lowest[x](low) signal=0 if sto crosses over 20 then if ll>lastll then signal=1 else signal=signal[1] endif lastll = ll[1] endif if sto crosses under 80 then if hh<lasthh then signal=-1 else signal=signal[1] endif lasthh = hh[1] endif return signal

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  sto = stochastic[8,3]   x = 8 //lookback period for find the lastest highest high or lowest low   hh = highest[x](high) ll = lowest[x](low)   signal=0   if sto crosses over 20 then if ll>lastll then signal=1 else signal=signal[1] endif lastll = ll[1] endif   if sto crosses under 80 then if hh<lasthh then signal=-1 else signal=signal[1] endif lasthh = hh[1] endif   return signal

   

  

  Nicolas

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  04/26/2017 at 11:30 AM #33467
  Francesco78

  Nicolas, I had a look at your code, and it is great, I was wondering though if it would be possible to code  the following:

  • definition of a uptrend scenario

  1. there are 2 higher highs in the last x days period.
  2. there are 2 higher lows in the last x days periods

  • definition of a downtrend scenario

  1. there are 2 lower  highs in the last x days period.
  2. there are 2 lower lows in the last x days periods

  Thak you very much

  Francesco

  

  Francesco78

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