William Blau Stochastic Uses Three-Stage EMA Smoothing

Summary

The document describes a William Blau stochastic indicator and its configurable inputs: a lookback period, three successive smoothing periods, and the price series used in the calculation. It first measures the current price relative to the lowest price in the lookback window, then applies exponential moving averages in sequence to smooth that value.

This is an indicator definition rather than a tested trading strategy. The text gives no signal thresholds, entry or exit rules, performance evidence, or comparison with a standard stochastic oscillator. Its formula describes a price-minus-low measure, so it does not by itself establish a normalized oscillator bounded between conventional levels. Traders implementing it would need to verify the source formula and determine how to interpret its output before using it in decisions.

Key ideas

• The indicator measures price relative to the rolling low over a configurable period.
• It smooths the resulting series through three successive exponential moving averages.
• The applied price and each smoothing period are user-configurable inputs.
• The document provides no 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.