Using a Stochastic of Moving Average as a Trading Filter

Summary

The document introduces a Stochastic of Moving Average indicator intended for use as a filter. It describes a class-based implementation that can be embedded directly in an Expert Advisor, avoiding a separate custom-indicator call. Users update the class with a shift value, with the current bar suggested for typical Expert Advisor use.

Inputs include the moving-average period, stochastic K and D periods, slowing period, and applied price. Outputs provide the stochastic value, K and D lines, and a direction state distinguishing stronger or weaker upward and downward conditions. The description says the filter can be paired with another trend indicator, but it gives no entry or exit rules, parameter recommendations, chart examples, backtest results, or evidence that the indicator improves trading. Its usefulness therefore depends on how a trader defines and validates a strategy around the readings.

Key ideas

• The indicator applies stochastic calculations to a moving average and is presented as a filter.
• Its configurable inputs cover the period, stochastic settings, slowing period, and applied price.
• The output includes the stochastic value, K and D lines, and categorical direction readings.
• The class can be embedded in an Expert Advisor and updated using a bar shift.
• The document supplies no trading rules or performance evidence for the indicator.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.