Double Smoothed Stochastic: Construction and Signal-Line Use

Summary

The document describes one version of the Double Smoothed Stochastic (DSS) oscillator and notes that several formulas circulate under similar names. In the version presented, a stochastic calculation is applied to a stochastic series that has itself been smoothed with an exponential moving average, and the result is smoothed again with an exponential moving average. The author explains that both the repeated stochastic calculation and the smoothing contribute to the name. Price selection is configurable, with a high-and-low price combination offered as the default.

The indicator adds a trigger line to help assess potential entries and exits, and changes in the plotted color may also be used as signals. These are practical descriptions of how to read the indicator, not a fully specified trading system: the document gives no parameter values, market examples, backtest results, or rules for confirming signals. It also declines to resolve competing claims about the indicator’s inventor, so the formula description should be understood as one particular variant rather than a definitive standard.

Key ideas

• The document distinguishes among multiple formulas called the Double Smoothed Stochastic.
• The described variant applies stochastic calculations and exponential moving average smoothing in succession.
• The price inputs can be selected, with high and low prices given as the default combination.
• A trigger line and color changes are presented as aids for judging possible entries and exits.
• The document supplies no tested performance evidence or complete trading rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.