Double-Smoothed Stochastic Variants Using Four Averaging Methods

Summary

This indicator description explains how a double-smoothed stochastic can be configured with four averaging methods: simple, exponential, smoothed, or linear weighted. Exponential smoothing is the default, while changing the average types creates alternative versions of the oscillator. The indicator also allows different price inputs, which it orders for use in the calculation; setting both smoothing periods to one or less can produce a raw stochastic form.

The document describes the stochastic as commonly used to identify overbought and oversold conditions, while suggesting that longer stochastic calculation periods may also be worth examining for reversal signals. It provides no formula details, trading rules, test results, or evidence that one smoothing choice is superior. Settings should be evaluated for each instrument because no single configuration is presented as universally suitable.

Key ideas

• The indicator supports simple, exponential, smoothed, and linear weighted averages for double smoothing.
• Exponential averaging is the default, but other choices produce distinct oscillator variants.
• Price inputs can be varied, and minimal smoothing periods can yield a raw stochastic form.
• The oscillator is commonly used for overbought and oversold readings, with longer periods also proposed for reversal analysis.
• The document provides no comparative performance evidence, so settings require instrument-specific evaluation.

Tags

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