William Blau Stochastic Oscillator: Triple Smoothing and Signal Line

Summary

This document explains the William Blau Stochastic Oscillator and its inputs. The indicator uses a lookback period, three successive smoothing periods, a signal-line period, and a selected applied price. It first measures the current price’s distance above the lookback low relative to the full high-low range, then smooths both the distance and range through three exponential moving-average stages. Their ratio, scaled to a percentage, forms the oscillator; a further exponential moving average produces the signal line.

The description defines the calculation components but supplies no parameter recommendations, chart examples, trading rules, or performance evidence. It therefore explains how the indicator is constructed, not when to buy or sell with it. Interpretation may depend on input choices and market conditions, and the document does not discuss edge cases such as a zero high-low range or compare this formulation with other stochastic indicators.

Key ideas

• The oscillator begins with price’s position above the lowest price in a lookback window.
• The high-low range and price distance are each smoothed through three exponential moving averages.
• The scaled ratio of the smoothed values is the oscillator reading.
• A separate exponential moving average of the oscillator forms its signal line.
• The document gives no trading rules or evidence of predictive performance.

Tags

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