The indicator allows to display the Double Smoothed Stochastics - see Stocks & Commodities, January 1991. The Double Smoothed Stochastics as introduced by William Blau should not be confused with the better known Double Smoothed Stochastics (DSS) indicator by Walter Bressert.
Blau Double Smoothed Stochastics (DSS-B): The raw Stochastics is calculated as the percentage value for the close within the range created from the highest high and the lowest low over the lookback period. The DSS-B is obtained by separately double-smoothing both numerator and denominator of the raw Stochastics. The double-smoothed value for the numerator is then divided by the double-smoothed value for the denominator.
Stochastics Smoothing: William Blau twice applied an EMA to both numerator and denominator of the raw Stochastics. This indicator allows to use 30 different moving averages for the smoothing. The same moving average type is used for the first and the second average calculation.
Parameters: The lookback period for the raw Stochastics indicates the number of bars for which the highest high and lowest low is determined. The lookback period is comparable to all other Stochastics indicators. The default value is 14 bars. The double smoothing of numerator and denominator is done with two moving averages. The first smoothing is typically done with a faster moving average, the second with a slower moving average.
Signal line: William Blau did not use a signal line for the double smoothed indicators. I have added the signal line, because the cross of the signal line can be used as a trend indication. Moving average type and period for the signal line can be selected.
Histogram: The indicator has an option to plot a histogram, which shows the difference between DSs and signal line.
Trend definition: The indicator exposes the current trend via an IntSeries. The trend can be determined based on the DSS (rising & not oversold, falling & not overbought, neutral), the signal line (rising & not oversold, falling & not overbought, neutral)) or the DSS / signal line crosses. All trend definitions are not straightforward, but require a higher close to switch to an uptrend, or a lower close to switch to a downtrend. Moreover the DSS / signal line cross will only show an uptrend, when not oversold and a downtrend when not overbought.
Paint bars: The paintbars can be used to plot the trend information. The trend states are uptrend, downtrend and neutral trend as explained above. It is possible to apply the indicator to the price panel and unselect the indicator plots. This allows to use the indicator as a "paintbar only" indicator.
Sound alerts: The indicator comes with sound alerts which are triggered when the trend changes. The sound files are included with the zip file and should be manually copied into the directory Documents -> program files (x86) -> NinajTrader 7 -> sounds.
Update March 13, 2014: Trend filter modified. Histogram added.
The indicator shows the Double Smoothed Momentum - see Stocks & Commodities, May 1991.
Blau Double Smoothed Momentum (DSM-B): The raw Stochastics is calculated as the percentage value for the close within the range created from the highest close and the lowest close over the lookback period. The term "Double Smoothed Momentum" is somewhat misleading. The DSM-B is obtained by separately double-smoothing both numerator and denominator of the raw Stochastics. The double-smoothed value for the numerator is then divided by the double-smoothed value for the denominator.
Stochastics Smoothing: William Blau twice applied an EMA to both numerator and denominator of the raw Stochastics. This indicator allows to use 30 different moving averages for the smoothing. The same moving average type is used for the first and the second average calculation.
Parameters: The lookback period for the raw Stochastics indicates the number of bars for which the highest close and lowest close is determined. The lookback period is comparable to all other Stochastics indicators. The default value is 14 bars. The double smoothing of numerator and denominator is done with two moving averages. The first smoothing is typically done with a faster moving average, the second with a slower moving average.
Signal line: William Blau did not use a signal line for the double smoothed indicators. I have added the signal line, because the cross of the signal line can be used as a trend indication. Moving average type and period for the signal line can be selected.
Histogram: The indicator has an option to plot a histogram, which shows the difference between DSM and signal line.
Trend definition: The indicator exposes the current trend via an IntSeries. The trend can be determined based on the DSM (rising & not oversold, falling & not overbought, neutral), the signal line (rising & not oversold, falling & not overbought, neutral)) or the DSM / signal line crosses. All trend definitions are not straightforward, but require a higher close to switch to an uptrend, or a lower close to switch to a downtrend. Moreover the DSM / signal line cross will only show an uptrend, when not oversold and a downtrend when not overbought.
Paint bars: The paintbars can be used to plot the trend information. The trend states are uptrend, downtrend and neutral trend as explained above. It is possible to apply the indicator to the price panel and unselect the indicator plots. This allows to use the indicator as a "paintbar only" indicator.
Sound alerts: The indicator comes with sound alerts which are triggered when the trend changes. The sound files are included with the zip file and should be manually copied into the directory Documents -> program files (x86) -> NinajTrader 7 -> sounds.
The Double Smoothed Stochastics (DSS) is an exponentially smoothed stochastics indicator applied to an exponentially smoothed stochastics. It has been popularized by Walter Bressert. The DSS can be used as a cycle indicator. Usually first a cycle analysis is performed. The DSS should then be applied with half the cycle period of the dominant cycle. Walter Bressert uses the indicator with default periods of 10 and 5, and calls them DBS10 and DBS5.
This indicator is a modified version of the Double Stochastics NinjaTrader default indicator. I have coded it for various reasons.
EMA period: The NinjaTrader default DSS uses an EMA period of 3. This setting cannot be changed. However, nearly all other versions of the DSS use an EMA period between 8 and 10. This version uses a default period of 9, which can be changed.
Coding Inefficiencies: The NinjaTrader default DSS is highly inefficient, when running with COBC = false, because both MAX and MIN methods are performed twice with every incoming ticks. I have changed the algorithm to increase the speed.
Signal Line: I have added a signal line to the DSS. The signal line is generated as an EMA of the DSS, in the same way as it is generated for the MACD.
Rising and Falling Colors: The indicator will plot in different colors, depending on whether the Double Stochastics is rising or falling.
You can put a slow and a fast Double Stochastics indicator on your chart, then use the slow one as trend filter and the fast one for timing the entry signals.
Update March 6, 2013: Code efficiency improved, signal line added.
Update March 7, 2013: Bug removed, indicator displayed false values with COBC = false.
This is the conversion of the NinjaTrader 7 KDJ Indicator coded by aligator.
According to the author of the original indicator:
Quoting
The J line is a measure of divergence between %D and %K. The value of J can go beyond [0, 100] range. Values of J line over 100 or under 0 are supposedly the most bullish or bearish for larger swings.
And:
Quoting
One needs to watch as the %D is in overbought and oversold areas (20 - 80). As long as the J line is beyond 0 and 100 percent and has not hooked up or down the price is going to remain in overbought or oversold area. One needs to consider to sell the overbought or buy the oversold when %D is above 80 or below 20 and J line begins to hook down or up. Other indicators such as momentum, volume, support and resistance, etc. need to be considered for confirmation.
Thanks to SPMC for pointing out the error that got me stuck.
See the discussion here. (Note this thread goes back to an earlier time and the template has evolved slightly... for instance the 540BB is white since I use a black background; but these changes are minor and you can get the idea from them).
There is no version number as this is a comilation of all the custom indicators used in this template. It is what I use as of the date of this submission.
Nice colored Stochastics Indicator. Set it at 4,8,1 for daytrading and you will hit the high and low peaks really well. I have been using for a while and didn't see one like this posted on the site so hear it is.
Nice colored Stochastics Indicator. Set it at 4,8,1 for daytrading and you will hit the high and low peaks really well. I have been using for a while and didn't see one like this posted on the site so hear it is.
Plots the MACD, RSI, or Stochastics and automatically draws a line representing the current trend and generates an alert if the trend line is broken. Based on the Automatic Trend Line Detection indicator by NinjaTrader_Ray.
October 7th, 2015 08:08 PM AMcCullough Thank you! I've been using it for a few days and its really good! Would be nice for an alert option to ring going into
and out of oversold/overbought! Thanks again!
June 17th, 2014 10:14 AM spitrader1 good job
December 10th, 2011 11:30 AM rmael
October 4th, 2011 07:45 AM Rudy52 Great stochastics!
February 16th, 2016 10:46 AM no3putts Great, thank you!
August 10th, 2015 11:43 AM Tony09 Thanks, again Fat Tails,
Awesome indicator - Exactly what im looking for entry timing.
Regards
Tony
March 23rd, 2014 11:51 AM stefp799 I am a newcomer, and i want to thank you for offering this great rendition of this old timer indicator. I was an old Stu
dent of Walter Bressert and am very familiar with the whole theory. This indicator is just what i was looking for. Had l
ost it years ago...Not useful by itself..but very useful when you look at a higher fractal chart in conjunction. say 5 m
inute chart is your master chart, and you trade on a 510 tick chart for example...or better yet...Bressert will look at
a daily chart..and when the doublestoch is descending..will short all the opportunity offered by the smaller fractals, b
ut more precise charts.. When the doublestoch is in sync between many fractals..you get the most bang for your buck. Tha