DV Super Smoothed Double Stochastics Oscillator
Posted: 14 Sep 2009
I was wondering if there are any programmers that can create this indicator as recently shared on CSS Analytics blog...here are the steps DV laid out:
To calculate the double stochastic oscillator take the following steps:
1) take the stochastic of the last 10 days including high, low, and close data calculated as (today’s close- min(last 10 days HLC))/(max(last 10 days HLC)-min(last 10 days HLC))
2) take the stochastic of the number calculated in step 1, in this case (stochastic-min(stochastic last 10 days))/(max(stochastic last 10 days)-min(stochastic last 10 days))
3) take the 3 period (day) average of this result for the first smoothing
4) take .85 x the first smoothed value + .15 x the previous day’s smoothed value for to get the final result
The resulting stochastic is smooth and very responsive to the cycles that occur in the S&P500.
To calculate the double stochastic oscillator take the following steps:
1) take the stochastic of the last 10 days including high, low, and close data calculated as (today’s close- min(last 10 days HLC))/(max(last 10 days HLC)-min(last 10 days HLC))
2) take the stochastic of the number calculated in step 1, in this case (stochastic-min(stochastic last 10 days))/(max(stochastic last 10 days)-min(stochastic last 10 days))
3) take the 3 period (day) average of this result for the first smoothing
4) take .85 x the first smoothed value + .15 x the previous day’s smoothed value for to get the final result
The resulting stochastic is smooth and very responsive to the cycles that occur in the S&P500.