Double Stochastic: A Smoothed Oscillator for Higher Time Frames

Summary

The double stochastic applies a stochastic calculation to the output of another stochastic. This additional smoothing is presented as a way to filter some false signals compared with a single stochastic, making the indicator more trend oriented. The document gives a broad usage guideline: consider it on higher time frames, where its trend signal may be more meaningful than on very low time frames dominated by noise.

No formulas, parameter settings, entry or exit rules, or performance evidence are provided. The claims about reducing false signals and suitability for higher time frames are qualitative, so traders would need to define the calculation and test it on relevant markets and time periods before relying on it. The text does not explain how to interpret specific indicator levels or what constitutes a signal.

Key ideas

• The indicator calculates a stochastic on the output of a stochastic.
• The additional smoothing is intended to filter some false signals.
• The document frames the indicator as trend oriented.
• Higher time frames are suggested because very low time frames may contain substantial noise.
• The document provides no parameter guidance or empirical performance evidence.

Tags

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