1. StochasticExtrapolator
The indicator predicts the future values of the Stochastic indicator, which allows you to use this indicator much more efficiently.
The market has a very short memory; in any case, the information that formally describes it quickly becomes obsolete and loses its weight in the formation of the current price. Therefore, wavelet analysis is the most promising for predicting future market parameters. The author uses a number of wavelet functions (including the Morlet wavelet and a somewhat modified Gaussian function, which are shown in the last screenshot), the expansion by which, with a sufficient degree of reliability, allows extrapolating future values of oscillator indicators.
To check the correctness of the indicator and its additional settings, it has the ability to extrapolate past Stochastic values from history.
The signal and main lines of the Stochastic indicator are quite close to each other, therefore, their wavelet extrapolations are often almost the same, which does not reduce the value of their readings, since they quite accurately show the general direction of the future price movement.
The indicator is especially useful for scalpers, but it can also be used for long-term strategies with no less success.
Indicator settings.
1. Stochastic settings
KPeriod=5;
DPeriod=3;
Slowing=3;
2. Wavelet extrapolator settings
Last bar in the past data – last bar of data to make a prediction. Values: 0 (default). Other integer values allow you to check the indicator's predictions for the past history.
Past bars. 0: all data. - number of bars to calculate the forecast. Values: 128 (default), it is not recommended to increase it, because due to the aging of information it does not give anything, but slows down the work of an already resource-intensive indicator.
Predicted future bars < PastBars – the number of bars for which the forecast is made. Values: 5 (default).
Select Wavelet type - Select the wavelet function type from the drop-down list. Values: sin(pi*x)*exp(-0.5*x^2), sign(x)*sin(pi*x)/(pi*x), sign(x)*| x^2-1 |*exp(-0.5*x^2) (default).
