Recursive Double-Smoothed Stochastic: Options and Timeframe Use

Summary

This document describes a recursive variant of a double-smoothed stochastic oscillator. It distinguishes the variant from the more familiar DSS calculation, noting that the latter has an additional smoothing stage. In this version, the initial input can be price, while each subsequent recursive step uses the previous step’s output; the recursion depth is capped for practical reasons.

The indicator offers simple, exponential, smoothed, and linearly weighted averages, along with floating, quantile, or fixed reference levels. Users can base color changes and alerts on slope, crossings of outer levels, or crossings of a middle level. It also supports multiple timeframes and alternative price inputs, including Heikin-Ashi data. The author suggests that the related double-smoothed stochastic tends to show cycles clearly on hourly charts and longer horizons, but gives no charts, backtest, or quantitative comparison. The timeframe guidance is therefore an observation to investigate, not evidence that the indicator predicts profitable trades.

Key ideas

• The variant recursively feeds each smoothed output into the next step after its initial price input.
• It provides four choices of averaging method and three types of reference levels.
• Alerts and colors can respond to slope or crossings of outer or middle levels.
• The indicator supports multiple timeframes and alternate price sources, including Heikin-Ashi values.
• The suggested use on longer horizons and hourly charts is not supported by performance testing in the document.

Tags

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