Experimenting with Stochastic Oscillators Using Different Averages

Summary

The document presents an experimental stochastic oscillator that changes the averaging method used in its calculation while leaving the price inputs unchanged. It offers four variants based on simple, exponential, smoothed, and linearly weighted averages. With a simple moving average, the indicator matches a standard built-in stochastic; the other averaging choices produce alternative versions of the oscillator. The signal line can also use different average types.

Color changes and alerts are tied to crosses between the stochastic and its signal line, following a conventional way to interpret the indicator. The text invites further experimentation with these variants but provides no formulas, parameter settings, chart examples, backtests, or performance comparisons. It therefore explains the design choices and alert concept without showing whether any variant improves trading decisions. Results may depend on settings and market conditions, which the document does not evaluate.

Key ideas

• The indicator varies the averaging method used to calculate the stochastic while keeping its price inputs unchanged.
• The simple moving average version matches a standard stochastic, while other average types create variants.
• The signal line can also use different averaging methods.
• Alerts and coloring are based on crosses between the stochastic and its signal line.
• The document offers no testing or comparative evidence about trading performance.

Tags

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