Using the Double-Smoothed Stochastic for Trend Signals

Summary

This short indicator note introduces William Blau’s double-smoothed stochastic, attributing it to a 1990 article. It identifies the calculation’s inputs as the current close, the lowest low and highest high over a lookback period, and exponential moving averages. The page says this version adds a signal or trigger line to make trend assessment easier, and suggests treating color changes as signals.

The document does not show the actual equation, parameter choices, chart examples, or a rule for entering and exiting trades. It also gives no backtest or performance evidence, and does not explain how the smoothing affects lag or how signals behave in different market regimes. The note is therefore a brief description of an indicator concept rather than a validated trading strategy; users would need the original calculation and independent testing before drawing conclusions about its usefulness.

Key ideas

• The indicator is described as a double-smoothed stochastic based on closing prices and rolling price extremes.
• The note attributes the method to William Blau’s 1990 publication.
• This version adds a signal line to support trend assessment.
• Color changes are suggested as possible signals, but no precise trading rules are supplied.
• The displayed text omits the equation, parameter settings, examples, and performance evidence.

Tags

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