stochastic formula

[tfann]

Hello Jason,
I'm using the stochastic and from this thread that I was reading, I'm using the standard overlay that is part of 7.5 version but when the stochastic is overlayed over price candles (ES H4), it has a tendency to periodically move changing iits relationship to price.

Is there or can you created a formula that would keep the stochastic constant to price? On another note, the company that uses this trading method is Traders International. They recommend students use the charting service Future Source, but I would like to be able to duplicate it with e-signal.

Thanks,
Terri Fann

[eSignal_JasonK]

Hello Terri,

In order to overlay a basic Stochastics study over the price pane, the Stochastic study has to have its own y-axis scale. There isn't a way to force the basic Stochastics study to stay in a fixed relationship to the price. However, I wrote a formula previously for a similar request that converts the Stochastics values to match the price scale. Try the formula below and see if this will work for you.

PriceAndStoch.efs

Here is another thread discussing this formula you may want to review below.
EFS Studies >> Indicator Overlay

[tfann]

RE: Reply to post 'stochastic formula'

Thanks.
Upon review, I actually like the way the overlay stochastic is NOT fixed to
price. It's been profitable for me. So, I guess in hindsight, if it's not
broke, I shouldn't be asking it to be fixed!
Terri Fann

-----Original Message-----
From: [email protected] [mailto:[email protected]]
Sent: Tuesday, January 27, 2004 3:49 PM
To: [email protected]
Subject: Reply to post 'stochastic formula'

Hello tfann,

~~~~~~~~~~~~~~~~~~~~~~~~~~~~

[bmartin004]

stochastic question

terri,

Do you use traders international, and if you do do you have a problem using their charts on e signal

[tfann]

yes, I use traders international and I find e-signal works just fine.
The MACD is quite good in shape, although the absolute numbers don’t have the same values as in FutureSource. The %Ds is good in shape, but the scaling of the indicator is not quite optimized, but I think it’s still very usable and actually prefer it.

If you need the settings, you can email the instructor at
[email protected], but you probably already know that.
Happy Trading, Terri