William Blau Stochastic Momentum Indicator Calculation

Summary

This document describes the William Blau Stochastic Momentum indicator and its configurable inputs: lookback period, three smoothing periods, and the applied price. It first finds the midpoint of the highest and lowest prices across the lookback window, then measures the selected price's displacement from that midpoint. The displacement is passed through three successive exponential moving averages to produce the indicator value.

The document explains the calculation structure but gives no signal thresholds, entry or exit rules, chart examples, or performance evidence. It therefore serves as a concise indicator definition rather than a tested trading strategy. Users would need to decide how to interpret the resulting values and assess the indicator in the instruments and time frames they trade.

Key ideas

• The indicator measures the applied price's distance from the midpoint of the recent high-low range.
• The range midpoint is calculated from the highest and lowest prices within the selected period.
• Three successive exponential moving averages smooth the displacement series.
• The document defines inputs and calculation but does not provide trading rules or performance evidence.

Tags

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