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anadoublesmoothestochastic I know what a double smoothed stochastic is, but what is "ana". Is it something that only NINJA uses? I'm using the open e-cry platform.
BigMike, this is the only forum that I can post in since I'm new here. My previous question got a very helpful answer....and prompt too.
Unfortunately I couldn't send a PM to thank him or her.
Can you help answer these questions from other members on NexusFi?
It is NinjaTrader best practice to put a prefix in front of an indicator. The prefix allows you to identify and to contact the author of the indicator.
There are two different "Double Smoothed Stochastics" indicators that are used in Technical Analysis.
Double Smoothed Stochastics by William Blau
This indicator was presented by William Blau in the 1991 Stocks & Commodities issue and is available as anaBlauDSS.
Exported using NT Version 7.0.1000.22
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 by Walter Bressert
This indicator is a slightly different version developed by Walter Bressert. It is more frequently used than the version by William Blau and is available as anaDoubleSmoothedStochastics here:
Exported using NT Version 7.0.1000.11
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 …
I believe that both indicators are also available for your platform, as they are standard indicators used in technical analysis.
The first plot is the Double Smoothed Stochastics (by Walter Bressert).
The second plot is a signal line that I have added.
First plot: Double Smoothed Stochastics
The Double Smoothed Stochastics by Walter Bressert is basically a Fast Stochastics (K-line) of a Fast Stochastics(K-line), where the Fast Stochastics uses exponential smoothing instead of simple smoothing.
-> first calculate the Stochastics K-line from the closes, but use an EMA instead of the SMA for the smoothing
-> then calculate the Stochastics K-line from the K-line, again use an EMA for the smoothing
The period (default = 10) is the lookback period for the raw Stochastics, the smoothing period (default = 9) is the period used for the exponential smoothing.
Second plot: Signal line (or trigger line)
The signal line is just an exponential moving average of the Double Smoothed Stochastics.
The signal period (Default = 5), is the period used for calculating the signal line.
Your question:
The anaDoubleSmoothedStochastics (2,10,1) uses
-> a lookback period of 10 for the raw Stochastics
-> a smoothing period of 2 to calculate the K-line (Fast Stochastics) as an EMA(2) of the Raw Stochastics
-> a signal period of 1, which means that the signal line is hidden behind the Double Smoothed Stochastics
but still couldn't replicate CFRN's green line and red blue trend line oscillators.
In trading that sma 5 line, triangle ma 11 of sma 5, and ema with a .1 coefficient ( 0.1= 2/(20+1) works. CFRN made youtube's of their application which means that everything is in the public domain.
The way I understand stochastics, smoothed, fast and slow and so on:
%k is the basic stochastic, close - low divided by high -low for that period,
%d is usually a sma 4 of %k
fast %k is a sma 3 of %d
Double Smoothed is EMA 5 of the %k.
Only question remains, are their other indicators worth $6000. Usually a merchant will display his best and easiest indicators to entice people to buy the whole package.
Dewayne let it slip that his Green line and cycle line oscillators are averages of other oscillators. Sometimes they look like they are using a 34 period, then a 20, and then a 5.
I wonder if Dewayne's algorithms have logic (if then) statements. Or he somehow figured out how to automatically adjust the length for RSI and Stochastic, like how you can adjust the EMA coefficient based on how linear a line is (residual squared), or the RSI or Sto values.
I got all the lines figured out except for the red blue oscillator in the lower chart. Dewayne says there is a ton of mathematics going on. It's just stochastics and moving averages. Maybe that would be a ton of math to someone with a GED from tennessee.
Oh, and the lines change color depending on if the slope is positive or negative. Now this would be very very mysterious for someone that took 1 year of high school basic math.
oscillators:
green= ema 3 of stoch10 of stochastics 2,2,10 of price
stoch10 = (price-lowest)/(highest-lowest) for last 10
ema 3= exponential moving average with exponent= 2/(1+3) = .5
stochastics 2,2,10 is the stochastics indicator given in the open e cry indicator package
brown=ema 3 of stoch34 of stochastics 1,4,34 of price
stoch34 = (price-lowest)/(highest-lowest) for last 34
ema 3= exponential moving average with exponent= 2/(1+3) = .5
stochastics 1,4,34 is the stochastics indicator giving in the open e cry indicator package
red blue line=trianglemoving average 12 of stoch23 of stochastic 1,4,34 of price
triagular moving average is call TRIMA in the oec indicator package
this one doesn't match as closely
price lines:
green line= rma .1 of price
rma.1 = rolling moving average in oec indicator package
black= sma 5 of typiccal price
sma5 = simple moving average 5 period
