Generalized SmoothStep Indicator and Higher-Order Smoothing

Summary

This document describes a generalized SmoothStep indicator built by repeatedly smoothing a normalized signal, drawing on an idea attributed to computer scientist Kenneth Perlin. It explains how the order parameter relates the generalized version to familiar indicators: order zero corresponds to a stochastic oscillator divided by 100 with slowing set to one, while order one matches the SmoothStep indicator. Higher orders apply additional filtering while retaining values within the expected range.

The indicator may be used in ways similar to the stochastic oscillator, or as a normalized input wherever a bounded signal is needed. The document gives no formula, parameter guidance beyond the order examples, backtest, or performance evidence. It therefore introduces the concept and its intended use, but does not establish that extra smoothing improves trading decisions or explain the lag and responsiveness tradeoffs that may result.

Key ideas

• The generalized indicator applies further smoothing as its order increases.
• At order zero, it corresponds to a stochastic oscillator scaled by 100 with slowing set to one.
• At order one, it matches the SmoothStep indicator.
• Higher orders are described as filtering the signal while keeping values in the expected range.
• The normalized output can be used similarly to a stochastic oscillator or as a bounded model input.

Tags

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