mrtools wrote: Sun Aug 26, 2018 1:53 pm Don't think this one has been posted. This is a smoother form of momentum with stochastic.

Stochastic Velocity

Found an error in the stoch velocity and made a new version using jurik smoothing instead of the moving averages for both the stoch and the signal. The newest is called stochastic velocity and in the picture it's the bottom one.

What is the Stochastic Velocity?

This indicator is a Stochastic applied to velocity (Momentum) instead of price levels.
Compared to the original Stochastic Oscillator, it gives signals earlier (since momentum shifts before price extremes), but may also produce more noise.

Stochastic Velocity Vs Stochastic Oscillator

In the chart below, we can observe that the Stochastic Velocity responds sooner compared to the traditional Stochastic; it adjusts to shifts in momentum (velocity) instead of delaying for the price to reach the high or low extremes.