Hi,
I stopped using indicators a long time ago but stumbled over a “bar-based stochastics” (it isn’t mine but I didn’t write down where I got it from) which I find pretty amazing: It very accurately anticipates turning points, particularly when it turns south from overbought (above 80) resp north from oversold (below 20).
Problem is that the indicator works best when put on a 5-6 times higher timeframe, i. e. if I want to see the turning points on a H1 chart, I need to put the indicator on a H5 chart (or daily and weekly chart). PRT doesn’t allow me to do so in the same chart so I need to open two, one with the H1 and one with the H5. Despite a large number of monitors, I simply don’t have the space to open a second chart for each of the instruments that I trade.
My question is: Does anyone have a viable idea how to “simulate” the bar-based stochastic (settings 5, 3, 3) of a H5 chart in a H1 chart? I thought I could perhaps change the settings from 5, 3, 3, to higher numbers to simulate this but I got nowhere. Is there a brilliant mind out there who can think of a solution?
Thanks!!
IF BARINDEX < K THEN
RetK = 50
RetD = 50
ELSE
minL = Lowest[K](Low)
maxH = Highest[k](High)
mins = Close - minL
maxes = maxH - minL
IF maxes > 0 THEN
FastK = 100*mins/maxes
ELSE
FastK = 50
ENDIF
RetK = Average[SD](FastK)
RetD = Average[D](RetK)
ENDIF
RETURN RetK COLOURED(0, 153, 255) as "BBS K", RetD COLOURED(255, 255, 255) as "BBS D", OB COLOURED(128, 128, 128) as "Over Bought", OS COLOURED(128, 128, 128) as "Over Sold"
>> Please update your country flag in your profile. Thank you 🙂 <<
This indicator’s code is the same as a normal stochastic, you can make comparison in your own platform like I did.
About simulate the higher timeframe values of the indicator, the fast and easy way is to multiplicate the indicator period by how many current timeframe bars the higher timeframe has in 1 bar. So to get the H5 values in an H1 timeframe, you only need to multiplicate the H1 periods settings by 5. Of course it will not be as accurate as the real H5 informations..
Thanks Nicolas, I really appreciate your input! You are right, the two indicators are largely the same but when you expand the timescale, the bar-based stochastics often turns 1-2 bars earlier than the conventional stochastics. I tried to simply multiply the %K value by 5 but, as you said, it’s just not the same.
I’ll scratch my pretty head for a solution. Keep up the great job here!
