ZeroLagStoch Indicator

[richa61416]

I actually saw this indicator in one of the many free Forex indicators that exist out there for Meta trader. It didn't work with Ninja Stochastic function, I coded Metatrader IStochastic in order for it to work exactly like Metas.

The MIN, Max etc, are Ninja's, so you can overwrite them.


I use ZeroLag as a signal confirmation for direction, along with another signal generator. In other words, I don't bet against it, and take this to overrule the other, until both point the same direction. Works for Forex and Futures. Anyway, hope it is useful to you guys too. I just wanted to return to all you guys at least 1 indicator, for the many I have received.

[NinjaTrader_Josh]

Awesome. Thanks.

[richa61416]

Awesome. Thanks.
No Prob. Glad to contribute.

[KBJ]

Thanks for your contribution.

Could you say a little more about how you use this indicator?

Most Stochastics displays that I've seen also show 20% and 80% lines, but this one doesn't. So does that mean you're not looking for a cross over/under of these lines?

I read this most excellent article ... http://anuhelix.com/books/Wayne%20A%20Thorp%20-%20When%20to%20Buy%20&%20Sell%20Using%20the%20Stochastic%20Oscillator.pd f ... a few days ago, and it gives several different ways to use the Stochastics to signal trades. Is it one of these that you're using?

KBJ

[richa61416]

It uses a series of Fast and slow Stochastic to determine the line values. Check the code, it is about 5 of them it uses.

The way I use it, is to confirm direction. When the Mov(RED) crosses above the Smoothed (Green)== Going Long or Trend changing to Long.

Vice versa when reversed. I use it in conjunction with another signal for confirmation. I use it for Scalping in the following regards and for Day trading in some automated strategies.
check the PIC out for the last 2 trading days.

Blue Dot== Go Long, Red Dot== Go Short
Zero Lag need to confirm the above (Either before DOT occurs or within 3 Bars of DOT Firing, 1 or 2 is best), else ignore the DOT signal.


I have attached a Chart. Here is an explaination of what you would have done.

First Red Dot says Short, but ZeroLag doesn't crosses until 7 bars( remember 1-> 3) later. So you don't go short.

Blue Dot triggers later, and ZeroLag indicates Uptrend. Go Long (I use auto break even to protect profits after 6 ticks from Entry, and 12 ticks of profit) 1547->1551.

The Day ends with a Red Dot, however the ZeroLag has not crossed. Means we have to wait at max 3 bars for a close below to confirm that we should go short. Next day the Zero Lag Crosses for Short within 1 Bar of the Dot. GO SHORT.
chart is from period 9.35 to 4.15 PM

The Zero lag is also used to get in to Major Trend Moves. E.g. Once in a big Trend, if the Zero Lag goes to cross, and then turn back as it did between 12.20 and 13.05 Join the trend. (I use a 200 Tick chart to also catch the moves when scalping. )

The Dot triggers almost in the same early detection time as http://www.bluewavetrading.com... the key is the dot needs confirmation to avoid me getting chopped up by the market.

[KBJ]

That helps a lot.

Thanks.

[DORAIRAJ_S@HOTMAIL.COM]

Thanks fpr providing the trading community with an excellent indicator with detailed application guidlines.
Incidentally, I don't see the dots (Blue / red) appearing on the price chart.
Where should I get the code for the same?

[richa61416]

The Dots are from another Forex Code. It is similar to BrainTrend and SilverTrend, but it works just as well. BrainTrend and SilverTrend are sold by another company, so Ninja would not allow it to stay, but you could find them on most forex forums and translate the code. They will print very close to my DOTS.

[Bogan7]

Hi there what is My Dots?

Regards


The Dots are from another Forex Code. It is similar to BrainTrend and SilverTrend, but it works just as well. BrainTrend and SilverTrend are sold by another company, so Ninja would not allow it to stay, but you could find them on most forex forums and translate the code. They will print very close to my DOTS.

[richa61416]

My DOTS are what are displayed on the chart. Some one was inquirying as to why they are not being displayed with the indicator. I was letting them know where they can find an indicator that would perform the drawing of DOTs, similar to mines.

[Bogan7]

Hi there one question I have is does it matter where the red line crosses the green line in that most stoch indicators you only sell if they cross above the 80 line and only buy below the 20 line (as a rule). Does this not apply here?

Regards

[KBJ]

Bogan7,

Check out the reference I posted earlier in entry #4 of this thread.

It gives three different strategies for the use of Stochastics indicators.

KBJ

[richa61416]

Please note that there are a few stochastics behind this, and not one. Most persons that use the indicator with their systems are only looking for a crossing period and confirmation with another indicator. Also please remember that you want to use this to confirm direction. If you rely on Stochs over bought and oversold only from stochastics, you can get burned bad and miss good ops. If crosses at those levels work for you, then use it so.

[Rollins]

Hi,

Thanks for the indicator, it looks like an MT4 port. I've made it more ninja, which makes it calculate faster but display the same values.

Cheers

[tallsmartman]

Hi, I know this is an old thread, but I was wondering if anybody noticed that this doesn't actually seem to work.

The Indicator doesn't change as I change PeriodD's value. The indicator does respond to PeriodK and Smooth, but changing periodD's value doesn't do anything.

Am I missing something?

-MW