Re: Stochastic indicator(s)

182
Hi guys,

Now that we have Triple Smoothed Stochastics can I please renew my request to upgrade the Recursive DSS as well?
Actually why not create the Ultimate Swiss-knife stochastics with all options now you have most of the code done. You could provide options for:
- Select price - latest set of prices
- Select average of price and period - latest set of averages, SMA with period 1 will be no averaging
- Select stochastics period
- Select smoothing method and period of stochastic itself - latest set of averages
- Select smoothing depth - to create DSS, TSS and multiple smoothed stochastics
- Select recursion depth - to create recursive stochastic of the above

I love stochastics. I have a feeling that recursion turns the stochastics from a differentiator into sort of an adaptive bandpass filter for some mid-frequency cycles. I trade support/resistance so I use one stochastics for momentum (like DSS r-squared or TSS of zero-lag TEMA) and a recursive one for cycles (currently 5 times recursive EMA DSS but would like a recursive Hull DSS or TEMA DSS). The idea is to trade around S/R with slowing momentum and at a logical cyclic turning point.

Thank you in advance!

Re: Stochastic indicator(s)

183
jerrysb wrote: Sat Jun 10, 2017 7:30 pm Hi guys,

Now that we have Triple Smoothed Stochastics can I please renew my request to upgrade the Recursive DSS as well?
Actually why not create the Ultimate Swiss-knife stochastics with all options now you have most of the code done. You could provide options for:
- Select price - latest set of prices
- Select average of price and period - latest set of averages, SMA with period 1 will be no averaging
- Select stochastics period
- Select smoothing method and period of stochastic itself - latest set of averages
- Select smoothing depth - to create DSS, TSS and multiple smoothed stochastics
- Select recursion depth - to create recursive stochastic of the above

I love stochastics. I have a feeling that recursion turns the stochastics from a differentiator into sort of an adaptive bandpass filter for some mid-frequency cycles. I trade support/resistance so I use one stochastics for momentum (like DSS r-squared or TSS of zero-lag TEMA) and a recursive one for cycles (currently 5 times recursive EMA DSS but would like a recursive Hull DSS or TEMA DSS). The idea is to trade around S/R with slowing momentum and at a logical cyclic turning point.

Thank you in advance!
Hi jerrysb
Can you illustrate with pictures what you explained in above lines,may be it help traders to better understand and exercise,after all we gathered here to share and contribute our part of knowledge - same thing doing our kind experts too :)
Indicator is just a tool.

Use it only if it can benefit you. Leave it if you don't know how to use it optimally.

Re: Stochastic indicator(s)

185
mntiwana wrote: Sat Jun 10, 2017 8:24 pm Hi jerrysb
Can you illustrate with pictures what you explained in above lines,may be it help traders to better understand and exercise,after all we gathered here to share and contribute our part of knowledge - same thing doing our kind experts too :)
Hi,
Well it's more of an art that a science. In fact that's why I am looking for indicators to make it rule-based.
What I do is basically a mean-reversion scalping strategy on the 15 min timeframe.
- I use the recursive stochastics for a "cyclical" view - i.e. what was supposed to happen if price were cyclical. I assume there is a 20 bar cycle - William Bressert said so! :)
- I use the DSS r-squared for the actual momentum view - what actually is happening with orderflow.
When they agree - price has a chance to bounce from the S/R or supply and demand zone.
When they disagree - a new S/R or supply demand zone has a chance to form that will be a point of entry later when tested.
To identify S/R or S/D zones I look in the past - if cyclical stochastics said down but price went up then there are strong bids there so I can scalp the bounce or if price should break through - bids will flip to offers and support will become resistance.
I don't care much how I draw my S/R lines or S/D zones - don't think there is a "correct" way of doing so. I just use the closest round numbers to trade off.
Here is a pic from the recent euro price action.


Re: Stochastic indicator(s)

189
Double Stochastic RSI
A bit older version - newer version is far best features wise - posted here
https://www.forex-station.com/viewtopic ... 1294882847
This version Double Stochastic RSI with interpolated mtf - rsi periods - rsi price to use rsi calculation basic 7 - stoch 1 and 2 periods - stoch smoothing periods - stoch signaling periods - 4 averaging methods for smoothing and signaling
very good tool,flexible to fit and adjust in any situation,thanks to our experts
Indicator is just a tool.

Use it only if it can benefit you. Leave it if you don't know how to use it optimally.


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