Stochastic - DiNapoli

Indicators coded by community members
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pip_bagger
Posts: 6
Joined: Sat Dec 22, 2007 7:46 pm

Stochastic - DiNapoli

#1 Postby pip_bagger » Sat Dec 22, 2007 8:14 pm

Hi-


I have done a search, but have not seen the Dinapoli Stochastic (called the "Preferred Slow Stochastic" by DiNapoli) converted for ForexTester on this forum, has anyone else seen it converted?

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In his book "Trading with DiNapoli Levels" Joe DiNapoli explains that he uses a "modified moving average" (taken from Kaufman's "New Commodity Trading) to calculate the Stochastic which he calls his "Preferred Slow Stochastic".

Quoting from Appendix E:-

MAVt = MAVt-1 + (Pt - MAVt-1)/n

where:

MAVt is the current modified Moving Average value
MAVt-1 is the previous modified Moving Average value
Pt is the current price
n is the number of "periods"

The starting point is calculated identically to that of a simple moving average.

The Fast Stochastics:

%K = 100[(C-Ln)/(Hn-Ln)]

where :

C is the latest close
Ln is the lowest low for the last n periods
Hn is the highest highn= for the last n periods

%D = 3 period modified Moving Average of %K

so finally:

The PREFERRED (SLOW) STOCHASTIC

%K = %D (from the fast stochastic above)

%D = 3 period MAV of %K
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The mq4 file is attached (text file).
Attachments
DiNapoli_Stochastic.zip
DiNapoli Stochastic mq4
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