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Stochasticoscillator

DSS of Advanced Kaufman AMA [Loxx]DSS of Advanced Kaufman AMA is a double smoothed stochastic oscillator using a Kaufman adaptive moving average with the option of using the Jurik Fractal Dimension Adaptive calculation. This helps smooth the stochastic oscillator thereby making it easier to identify reversals and trends. What is the double smoothed stochastic? The Double Smoothed Stochastic indicator was created by William Blau. It applies Exponential Moving Averages (EMAs) of two different periods to a standard Stochastic %K. The components that construct the Stochastic Oscillator are first smoothed with the two EMAs. Then, the smoothed components are plugged into the standard Stochastic formula to calculate the indicator. What is KAMA? Developed by Perry Kaufman, Kaufman's Adaptive Moving Average (KAMA) is a moving average designed to account for market noise or volatility . KAMA will closely follow prices when the price swings are relatively small and the noise is low. KAMA will adjust when the price swings widen and follow prices from a greater distance. This trend-following indicator can be used to identify the overall trend, time turning points and filter price movements. What is the efficiency ratio? In statistical terms, the Efficiency Ratio tells us the fractal efficiency of price changes. ER fluctuates between 1 and 0, but these extremes are the exception, not the norm. ER would be 1 if prices moved up 10 consecutive periods or down 10 consecutive periods. ER would be zero if price is unchanged over the 10 periods. What is Jurik Fractal Dimension? There is a weak and a strong way to measure the random quality of a time series. The weak way is to use the random walk index ( RWI ). You can download it from the Omega web site. It makes the assumption that the market is moving randomly with an average distance D per move and proposes an amount the market should have changed over N bars of time. If the market has traveled less, then the action is considered random, otherwise it's considered trending. The problem with this method is that taking the average distance is valid for a Normal (Gaussian) distribution of price activity. However, price action is rarely Normal, with large price jumps occuring much more frequently than a Normal distribution would expect. Consequently, big jumps throw the RWI way off, producing invalid results. The strong way is to not make any assumption regarding the distribution of price changes and, instead, measure the fractal dimension of the time series. Fractal Dimension requires a lot of data to be accurate. If you are trading 30 minute bars, use a multi-chart where this indicator is running on 5 minute bars and you are trading on 30 minute bars. Included -Toggle bar colors on/offf
Pine Script® indicator
by loxx
1
Stoch RSI, Div, Zone S3 by Gammaprod>> How to use this indicator : 1. Set your teadingview theme to dark theme. 2. My indicator is valid for forex, stock and but more valid for crypto. 3. Use three timeframe for more validation (choose between those, that fit to your trading style) : - Timeframe 1m, 5m, and 15m for Scalping - Timeframe 30m, 1h and 4h for Intraday - Timeframe 4h, 1D and 1W for Swing Trading 4 . Always use THREE INDICATORS FROM GAMMAPROD, those three indicators is back to back each other, by the way, I only made those three indicators only (for now) : - Trendlines Boll Ichi Crypto by Gammaprod - Stoch RSI Divs Zone Crypto by Gammaprod - MACD Volume Crypto by Gammaprod >> How to setting : 1. Trendlines Boll Ichi Crypto by Gammaprod A. Support and Resistence - Well if you familiar with this indicator you can add it, but recommended for Timeframe 30m or more B. Trendlines Primary or Trendlines Secondary - Timeframe 1m you DON'T NEED Trendlines Primary or Trendlines Secondary - Timeframe 5m you DON'T NEED Trendlines Secondary, but you CAN ADD Trendlines Primary if you fell it helpful (for me, it is helpful to find where the candles start or the end trend or a consolidation or where the candles will surpass a resistance or a support). - Timeframe 15m you DON'T NEED Trendlines Secondary, DEFENITELY add Trendlines Primary it will help to find where the candles stop or a consolidation or where the candles will surpass a resistance or a support). - Timeframe 30m or more, DEFENITELY NEED BOTH Trendlines Primary and Secondary Trendlines, it will help to find where the candle stop or consolidation or where the candle will surpass a resistance or support). C. Bolinger, Ichimoku Cloud and Lagging Span - Please DON'T CHANGE IT at all, it's really helpful to know when and where to make an entry decesion or a trend or a consolidation, if you don't understand how to read it, you better to learn it first (on "how to read" section and "How to OPEN position" the section below) 2. Stoch RSI Divs Zone Crypto by Gammaprod (DON'T CHANGE IT) 3. MACD Volume Crypto by Gammaprod (DON'T CHANGE IT) >> How to read : 1. Sell or Buy Priority : A. Buy Priority - Color background on macd and stoch rsi is pink or purple sell is the priority, (if you're not sure to buy, just wait until the best moment to sell) B. Buy Priority - Color background on macd and stoch rsi Teal or light green buy is the priority, (if you're not sure to sell, just wait until the best moment to buy) C. Indecision / Golden Moment - Color background on stoch rsi yellow is indecision / golden moment of reversal pattern (wait until it formed background only on Stoch RSI), please becareful at this moment. 2. Trend / Consolidation : A. BULLISH trend - When Stoch RSI and MACD have teal or light green background that's means BULLISH trend, better to confirm by the candle is above green cloud and lagging span (red line) is also above the candle. B. BEARISH trend - When Stoch RSI and MACD have the Pink or purple background that's means BEARISH trend, better to confirm by the candle is above purple cloud and lagging span (red line) is also below the candle. C. CONSOLIDATION - When Stoch RSI have the mix background that's means CONSOLIDATION, better to confirm by the candle is in or near to green / purple cloud and lagging span (red line) is also on the candle. 3. Special Mark A. Ideal Bullish : - Near line 20 and green / teal background = When Stoch RSI have the char R / H on lime color label, that's means divergence or hidden divergence for buy position, if you not see this label that's means just a standard confirmation for buy B. Not an Ideal Bullish : - Near line 80 and green / teal background = if this happens make sure you know what happen, it could be a false signal or bullish continual pattern C. Ideal Bearish : - Near line 80 and pink / purple background = When Stoch RSI have the char R / H on lime color label, that's means divergence or hidden divergence for buy position, if you not see this label that's means just a standard confirmation for sell position. D. Not an Ideal Bearish: - Near line 20 and pink / purple background = if this happens make sure you know what happen, it could be a false signal or bearish continual pattern E. The Beginning of Reversal (from BEARISH to BULLISH) : - When Stoch RSI line shaping GREEN position is near 20. - MACD lines still PINK, position lines is UNDER the HISTOGRAM, but the HISTOGRAM start to SHAPE FALL PINK (light pink) and the BACKGROUND still PINK / PURPLE. - Position CANDLES NEAR BLUE line, NEAR PURPLE CLOUD, and lagging span (red line) STILL ON the area candle. (it used to be confirmed with the golden moment). F. The Beginning of Reversal (from BULLISH to BEARISH) : - When Stoch RSI line shaping PINK position is near 80. - MACD lines still GREEN, position lines is ABOVE the HISTOGRAM, but the HISTOGRAM start to SHAPE FALL GREEN (light green) and the BACKGROUND still TEAL / GREEN. - Position CANDLES NEAR WHITE line, NEAR TEAL CLOUD, and lagging span (red line) STILL ON the area candle. (it used to be confirmed with the golden moment). G. False Signals, or It could be a Golden Moment (better to see it on TF 15 or bigger): - Near line 20 or 80 and yellow background = When Stoch RSI have the char R / H on color label, that's means divergence or hidden divergence for buy / sell position, if you not see this label that's means just a standard confirmation for buy / sell depends on where the Stoch RSI line if near 20 that's means buy, near 80 means sell >> How to OPEN position: A. Bullish 1. Trendlines Boll Ichi Crypto by Gammaprod - The candles above the green cloud. - Lagging span (red line) above the candles. - then open buy near yellow line (the first option) / blue line (the second option) (always confirm the position with two other indicators below). 2. Stoch RSI Divs Zone Crypto by Gammaprod - Teal or Green background. - The lines is shaping green. - Better if on the bottom (at a range 20). 3. MACD Volume Crypto by Gammaprod - Teal or Green background. - The lines is shaped or shaping green. - Better if at the green histogram. B. Bearish 1. Trendlines Boll Ichi Crypto by Gammaprod - The candles below the purple cloud. - Lagging span (red line) below the candles. - then open buy near yellow line (the first option) / white line (the second option) (always confirm the position with two other indicators below). 2. Stoch RSI Divs Zone Crypto by Gammaprod - Pink or purple background. - The lines are shaping pink. - Better if the line on the top (at a range 80). 3. MACD Volume Crypto by Gammaprod - Pink or purple background. - The lines are shaped or shaping green. - Better if at the pink histogram. C. Consolidation 1. Trendlines Boll Ichi Crypto by Gammaprod - The candles on the cloud (green or purple). - Lagging span (red line) on the candles. - then open buy near the white or blue line (always confirm the position with two other indicators below). 2. Stoch RSI Divs Zone Crypto by Gammaprod - Mix background specially on a timeframe 15m or more. - The line move fast up and down. - Better if on the bottom or the top of the lines (at a range 20 or 80). 3. MACD Volume Crypto by Gammaprod - Changing the background. - The line is near the middle line. - Have small Histogram. >> The secret ingridient is comparing the timeframe : The example scalping (Timeframe 1m, 5m and 15m) - TF 1m is for making an open position. - TF 5m is for making a judgement of the trend market. - TF 15m is to confirm that judgement from TF 5m, be careful if it not similar then it used to be a consolidation or the beginning of the reversal. There's a lot a way to open the position than above information that i gave it to you, but consider there are a limit char on this column, I hope it will help your trading and make a more profit on it.
Pine Script® indicator
by Gammaprod
20
OnChart Stochastic💡 Stochastic oscillator superimposed on the chart! 👉 This is a very convenient visualization for trading in any market and TF! Stochastic settings are standard. The exit of the Stochastic lines above the upper border (High band) indicates that the price has entered the overbought zone (here you should look for a sale), the exit below the lower border (Low band) indicates the entry into the oversold zone (here you should look for purchases). The intersection of the "stochastic" lines indicates a probable reversal of the direction of price movement. The indicator also has a range setting, in which the "stochastic" moves with reference to the MA. For MA, you can select the type, period and data type. The values ​​are adapted based on the daily values ​​of the previous bar and adjusted by the period (ATR Len) for smoothing. The values ​​of the upper and lower bounds for the "stochastic" are also set. It is possible to show on the chart the points of intersection in the oversold/overbought zones (show cross). 👉 I wish everyone profit and be sure to follow the risk management in trading! You can set alerts for "stochastic" line crossings in oversold/overbought zones (use UP cross/DN crross "Once per bar close"). If you have any questions, you can write to me in private messages or by using the contacts in my signature. ---------------------------------------------------- 💡 Стохастический осциллятор наложенный на график! 👉 Это очень удобная визуализация для торговли на любом рынке и ТФ! Параметры настройки "стохастика" - стандартные. Выход линий "стохастика" выше верхней границы (High band) говорит о входе цены в зону перекупленности (здесь следует искать продажу), выход ниже нижней границы (Low band) говорит о входе в зону перепроданности (здесь следует искать покупки). Пересечение линий "стохастика" говорит о вероятном развороте направления движения цены. В индикаторе также есть настройка рейнджа, в котором двигается "стохастик" с привязкой к МА. Для МА можно выбрать вид, период и тип данных. Адаптация значений выполнена на базе дневных значений предыдущего бара и регулируется периодом (ATR Len) для сглаживания. Также задаются значения верхней и нижней границы для "стохастика". Есть возможность показать на графике точки пересечения в зонах перепроданности/перекупленности (show cross). Вы можете установить оповещения для пересечения линий "стохастика" в зонах перепроданности/перекупленности (используйте UP cross/DN crross "на закрытии бара"). 👉 Желаю всем профита и обязательно соблюдайте риск-менеджмент в торговле! По любым вопросам Вы можете написать мне в личные сообщения или по контактам в моей подписи.
Pine Script® indicator
by Shuttle_Club
3
RSI/CCI/MFI/ADX/Stoch MTF DashBoardGauge Sentiment across timeframe for various indicators in single dashboard. RSI - to get the idea about relative price strength across all TFs. CCI /ADX- to get idea about power and strength in trend across all TFs. MFI- gives idea whether trend is supported by volume or not across all TFs. with this dashboard , you will get complete sentiment of market on your screen whether you use lower to upper TF or upper to lower TF approach. you can see market behavior and sentiment with these all in one dashboard across all TFs. Better use this with MA or vwap to get trend direction. Added feature to change location of dashboard on chart, now you can place it on top left, top right, bottom left, bottom right corner of chart as per your comfort. 2. Added ability to hide/show for all TFs. Now you can on/off , 5min, 15 min, 30 min, 60 min, 4 hour, daily ,weekly and monthly TF column if you do not use it. you can keep and work with TFs as per your comfort and liking. 3. Added feature to hide/show indicators, MFI, CCI, ADX. Now you can on/off indicator s MFI, CCI and ADX if you don't need them on dashboard as per your need. Made dashboard cell width and height auto adjusted, so that it values can be visible fully on TV app on mobile too. Hope it provides a better visual experience to read data on dashboard. 4. Added Stochastic as indicator to dashboard. STOCH is a range bound momentum oscillator. It is designed to display the location of the close compared to the high/low range over a user defined number of periods. You can use STOCH for Identifying overbought and oversold levels and also for identifying bull and bear set ups or signals across all TFs. Hope IT helps to take better trading decisions.
Pine Script® indicator
by MTFTrader
28
Vol Buy/Sell %s, CMF, and Stocahstic Osc & UOPlots % Buy / Sell Volume , Chaikin Money Flow , Stochastic Oscillator, and Ultimate Oscillator on same axis, bound -1 to 1. Show Volume Percentage, displaying buying as green and positive, selling as red and negative. Showing the CMF, with green / red fill for positive / negative values. Modified Stochastic Oscillator, converting bounds to -1 and 1, moving overbought/sold to -0.6 and 0.6, accordingly. Green fill (buy signal) with %D below -0.6 and %K lower than %D. Red fill (sell signal) with %D above 0.6 and %K higher than %D. Fill is between %D and bound, to be more visible. Modified Ultimate Oscillator, converting bounds to -1 and 1, moving overbought/sold to -0.6 and 0.6, accordingly.
Pine Script® indicator
by thessnake03
6
Stochastic with Lines - ChartWhat is Stochastic with Lines - Chart and why do you need it? I use it for chart analysis to identify key K/D levels from which bullish / bearish market structure continues to develop. Chart means that every K/D cross above/below the signal lines will be notified on your Chart and not on the stocahstic oscillator. To see them on your chart please choose "Stochastic with Lines - Default" in my library. Once K or the D line cross over or under your upper or lower signal line you will see background colors which you can adjust in the settings menu. This small indicator is for a larger project which will be uploaded in several days/weeks.
Pine Script® indicator
by UnknownUnicorn5507594
(JS) Double StochasticThe idea for this indicator came from looking at the Stochastic RSI. The Stochastic RSI takes the RSI reading then applies the Stochastic formula to it - an indicator on top of an indicator. Using this logic, I decided to try using a Stochastic on the existing Stochastic in order to smooth it out - hence the "Double Stochastic". I have also added the option to add RSI on to the indicator as well (with smoothing if you'd like). Resolution: I added this so you can look at the reading on any time frame. K & D: This is the standard K% and D% used with the Stochastic indicator - the numbers modify the length of their calculations. Smooth: This is the smoothing calculation, also from the normal Stochastic indicator. Use Second Stochastic: This adds a second Stochastic on to the chart for analysis. K & D 2: This is the parameters used to calculate the second K% and D% lines. Smooth 2: This is the smoothing interval for the second K% and D% lines. Use K% and D%: The default for this is to have it on. What it means is that you wish to see both the K% and D% lines (watching for a cross). If you turn this off, the plot switches to a K% & D% difference line. It is just one line that plots the distance between the two. SMA Length Using Difference: If this is on, then you can smooth the difference plot with an SMA, obviously if you just want the raw difference to plot, then set this to 1. Use RSI: Since both RSI and Stochastic use a 0-100 scale, I added the ability to plot the RSI along with the Stochastic. This will not plot if you are using the Difference plot, being that plot isn't on a 0-100 scale. Smooth RSI: I also added the ability to smooth the RSI if you'd like, you can turn this off for the standard RSI reading. RSI Length: This is the period of bars used to calculate the RSI. RSI Smoothing Length: This is the smoothing interval if you'd like to apply a moving average on the regular RSI reading. RSI Smoothing Use EMA: This makes the RSI smoothing use an EMA, when off an SMA is used instead. RSI Source: And finally, this is the source used to calculate the RSI value. I hope that you all may find this useful, I have been using it myself with a lot of success. Any questions, please leave them in the comments, thanks!
Pine Script® indicator
by J-Streak
Cash Trap Oscillator 2.0This script uses a DMI, Stochastic , and one RSI , when they are all overbought or oversold (also applying price action and looking for bounce points) we can obtain a greater probability that the price will go in the direction we expect This script is compact, which can be very useful for many traders. For Best Results, Collect Minimum of 4 Confirmations. Default values DMI: Lenght=10 Stolenght=3 Stochastic: K=5 D=1 Smooth=1 RSI: Lenght=4 The indicators configured in this way can bring greater efficiency, do not confront only them, also use price action or other confirmat They are arranged in a graph, such that the DMI has the oversold at 10 and the overbought at 90, the stochastic oversold at 120 and overbought at 180 and the RSI at oversold at 220 and overbought at 280, you can configure them your way taking into account that the DMI range is from 0-100, stochastic 100-200 and RSI 200-300.
Pine Script® indicator
by Edrul_Alejandro
2
Stochastic CandlesA series of up to 28 stochastics oscillators used to form an average stochastic value, which is then used to colour the candles based on the momentum. Each candle can be coloured one of ten colours and each one represents a position on the stochastic oscillator. The indicator helps traders to visualise the momentum and helps trend following. Inputs: MA: multiple smoothing methods Theme: multiple colours Increment: stochastic length start and increments End: stochastic length end Smooth: smooth stochastic
Pine Script® indicator
by Violent
27
Ultimate Gemstone‘’Ultimate Gemstone = best indicator to accurately predict price movement based on momentum’’ This indicator is combination of multiple indicators (RSI, Stoch, GM, Moving averages & CCI) works on all the trading assets and time frames. Accurately predicts top and bottoms ( tested on all major crypto's, stocks and forex). Comes with 6 different presets with different calculations giving additional flexibility to the user. "Instructions How To Use" This indicator is based on four different moving lines depicting momentum; first line (Aqua) is a fast trend line, which reacts rapidly to existing price action, second line (Purple) is slower and takes more price action into account, while third line (Yellow) is the slowest and depicts overall trend. Additionally, CCI/EMA moving line with changing color's (red/green) acts as a another trend confirmation tool. The three moving lines acts as support and resistance depending on there location to each other. Non-moving parts include fibonacci support and resistance (68.2 & 38.2) areas of the oscillator. Different caution (Red, Green dots & background flashes) settings based on GM indicator to help identify perfect buying and selling opportunities. Additionally, the oscillator has oversold, overbought, bullish and bearish control zones similar to RSI/Stoch oscillators. Similar to RSI/Stoch divergences and trendlines do also work on this oscillator. Other ways to use is Aqua line crossovers with the Purple line, giving hard buy/sell signals and Aqua(fast) line turning (angle change) indicating momentum is reversing. Example 1: When faster moving line gets pulled into the medium and slower line (especially in the overbought territory of the oscillator) gives you indication to be prepared as most likely the price will go down. Perfectly called Bitcoin top in 2017. Example 2: BTC bottom in dec2018 and start of new trend in feb2019 Example 3 BTC Top in june2019 Example 4 works across all time frames, Recent BTC price action from 6500 to 7700. Example 5 LINKBTC daily
Pine Script® indicator
by UltimateJewel
16
Stochastic Pro Suite (Zeiierman)█ Overview Stochastic Pro Suite (Zeiierman) is a full stochastic trading framework built on top of an Efficient Price engine. Instead of feeding the oscillator with raw price data, the script first converts price into a volatility-aware, efficiency-weighted path called Efficient Price and then builds a stochastic on that foundation. Every major component, including EP Stochastic, Significant Stochastic Moves, divergence logic, inefficiency regimes, momentum impulses, and the multi-timeframe dashboard, reads from this refined stream. The result is a stochastic that still behaves like the familiar 0–100 %K/%D oscillator, but with far more context behind every move. It doesn’t simply tell you where the price is within a recent high–low range; it tells you how reliable that move is, how clean the underlying regime is, and when the internal rotation is stretched. The tool works equally well for traders who like classic overbought/oversold swings and those who prefer higher-level context such as pressure bands, regime shifts, and impulse-driven moves. ⚪ Why This One Is Unique Most stochastic indicators calculate %K and %D directly from the recent high–low range. Stochastic Pro Suite goes a step earlier in the chain. It first runs the chosen EP source (Close, Mean-reversion, or Trend) through a two-stage Efficient Price model that adapts to volatility, filters out random zigzags, and emphasizes directional quality. Only then is the stochastic calculation applied. This means that when the oscillator hugs the top of its range, it’s not just reacting to any move up; it’s reacting to price movement that has already passed through an efficiency filter. Shallow, noisy moves tend to be down-weighted; clean, committed pushes stand out more. Around this EP Stochastic core, the script layers: Significant Stochastic Moves to track internal pressure zones, Divergence detection based on EP-Stochastic pivots, An inefficiency layer that flags distorted regimes, A momentum impulse engine focused on unusually strong surges, and A dashboard that stitches everything together across multiple timeframes. █ Main Features ⚪ EP-Based Stochastic At the core is an EP-Stochastic built on Efficient Price instead of raw highs and lows. The oscillator keeps the classic stochastic look: 0–100 scale, Upper and lower tension zones, A midline representing balance, Signal line via several moving-average types. What changes is the input: instead of loosely tracking every tick, the EP engine compresses noisy swings and lets structured moves dominate the signal. This makes the stochastic more stable in directionally clean phases and more revealing when the market truly rotates. You can choose between three EP behaviors to shape how the oscillator responds: Close The engine follows price almost one-to-one, but with the benefit of efficiency filtering. This setting is ideal if you want a familiar, general-purpose stochastic feel with fewer random spikes and more meaningful tests of the bands. Mean-reversion Here, the EP source emphasizes swing turns and back-and-forth rotation. The stochastic becomes a dedicated swing tool: transitions between upper and lower zones become more pronounced, and range-bound behavior is easier to read. This mode is well-suited for traders who fade extremes or trade oscillations inside a broader sideways structure. To get better mean-reversal signals, increase the Stochastic Length to 200 and the Efficiency Length to 20. Trend In Trend mode, the EP source is smoothed to emphasize directional movement. When a trend is strong, the oscillator stays mostly in one half of its range and usually remains there until the trend begins to weaken. This makes it easier to see whether a pullback is just a pause in the trend or a sign that the structure is starting to roll over. If you increase the EP Length, a more filtered trend will appear. ⚪ Significant Stochastic Moves Instead of only watching fixed numerical levels like “80” or “20,” the suite identifies where the oscillator is trading within its own evolving range. Significant Stochastic Moves appear when the EP Stochastic pushes into internally important zones, areas where the market has historically shown heightened reaction or follow-through. These highlights show when the stochastic is pressing into one of its key pressure zones. This helps you distinguish between normal rotation and moments where the internal push becomes strong enough to deserve attention. To identify significant moves, switch to Mean-reversion mode. ⚪ Divergence Detection The script includes automatic detection of regular bullish and bearish divergences between the EP-Stochastic and price: Bullish divergence: price makes a lower low while the EP-Stochastic prints a higher low. Bearish divergence: price makes a higher high while the EP-Stochastic prints a lower high. These are drawn directly on the oscillator pane with clear labels. Because the oscillator is driven by Efficient Price, many of the “random” divergences you see with standard stochastic are filtered out, leaving fewer but more structurally relevant signals, especially around extended trends, tight ranges, and turning points. To detect divergence, switch to Mean Reversion mode. Since this divergence function is based on price-efficiency rather than traditional momentum swings, some divergences may appear a bit unconventional; however, the accuracy is on an entirely different level. ⚪ Momentum Impulses Momentum impulses focus on moments when the oscillator accelerates unusually quickly relative to its own recent behavior. Green circles near the upper region highlight powerful bullish surges. Red circles near the lower region highlight powerful bearish surges. The underlying logic exaggerates only the strongest deviations and ignores routine oscillation. These impulses often coincide with breakout thrusts, exhaustion spikes, sharp squeezes, or capitulation moves, places where the market briefly abandons its usual rhythm. They’re not a stand-alone trading system, but a visual cue that something unusually strong just happened in the stochastic structure. ⚪ Inefficiency Regime The inefficiency engine monitors how orderly or distorted the combined price–stochastic behavior is. When the internal regime becomes noisy, spiky, or unbalanced, the script marks blue diamonds around the mid-region of the oscillator. These diamonds tend to cluster when: A previously clean trend starts to fragment, A range becomes unstable and prone to fake breakouts, Moves extend beyond what the recent structure would consider “normal.” Used together with Significant Stochastic Moves, impulses, and divergence, these inefficiency markers help you distinguish between healthy follow-through and movement that is increasingly fragile. ⚪ Visual Multi-Timeframe Dashboard On the right edge of the pane, a compact dashboard summarizes several key elements across 5M, 15M, 1H, 2H, 4H, and 1D: Signals: immediate directional bias from the stochastic context, OB/OS flags: stretched conditions by timeframe, Divergence: where the structure disagrees with price, Impulse: active momentum bursts, Inefficiency: unstable or imbalanced regimes, Explosive: high-energy conditions highlighted by Significant Stochastic Moves. Think of it as a “stochastic climate map.” Instead of checking six separate charts, you get a quick snapshot of whether lower timeframes are in sync with the higher backdrop, or whether they are fighting each other. This is extremely helpful for multi-timeframe alignment and for deciding when to be aggressive versus when to stay defensive. █ How to Use ⚪ Classic Stochastic Trading Interpreting EP-Stochastic is similar to classic stochastic, but cleaner: Sustained time above the midline signals a bullish rotational bias in the Efficient Price space. Sustained time below the midline signals a bearish rotational bias. When the oscillator repeatedly leans against the upper zone with a strong signal line, it indicates firm buyer control; when it leans against the lower zone with a soft or falling signal line, it indicates firm seller control. When using “Close” as the EP Source, consider increasing the Efficiency Length to above 10 to produce more trend-like behavior. ⚪ Trend Trading For trend trading, Trend mode is your core setting: Use Trend mode with a moderate or slightly longer stochastic length. Watch whether the oscillator lives mostly in the top or bottom half of its range. Use the dashboard to see if higher timeframes show similar directional signals and OB/OS flags. Impulse markers and Significant Stochastic Moves can be treated as continuation confirmations when they appear in the direction of the trend. Inefficiency diamonds and fading impulses act as early warnings that the current leg is losing coherence and may transition into consolidation or reversal. Inefficiency diamonds also signal imbalance in the market, where price can move quickly as the structure becomes unstable. ⚪ Pullback Trading One useful workflow: Run EP-Stochastic in Trend mode to define the dominant direction and regime. Overlay a shorter, standard stochastic to spot pullbacks inside that regime. When the EP-Stochastic clearly favors one side (mostly upper-half behavior in an up move, lower-half in a down move), wait for the short stochastic to cycle into its opposite extreme (oversold in an uptrend, overbought in a downtrend). Entries during those counter-swings, especially when they coincide with impulse exhaustion in the opposite direction, often give cleaner, better-timed participation in the ongoing trend. ⚪ Overbought/Oversold Trading Overbought zones represent strong buying pressure. When the stochastic becomes overbought, start watching for signs that buying pressure is fading. If buying pressure continues, it typically indicates a strong bullish trend. If the stochastic starts to decline and crosses back under the upper band, it can signal that buying pressure is weakening and a potential reversal is forming. Oversold zones represent strong selling pressure. When the stochastic becomes oversold, start looking for signs that selling pressure is easing. If selling pressure persists, it usually indicates a strong bearish trend. If the stochastic begins to rise and crosses back above the lower band, it can signal that selling pressure is fading and a potential reversal is developing. ⚪ Mean-reversion Trading Switch to Mean-reversion mode, increase the EP Source Length to 200, and reduce the Stochastic Length to 20 when you’re primarily focused on turning points and range rotation. Look for clear spikes or peaks in the indicator, short-term bursts that quickly reverse. These moments often signal market conditions with a high likelihood of mean reversion, making a snapback in the opposite direction more likely. ⚪ Divergence Trading When you want to focus on structural turning points rather than trend following: Enable divergence detection. Focus on divergences that form after extended moves or near the outer zones of the oscillator. Bullish divergences emerging from deep lower regions can confirm early long ideas or justify scaling in as pressure transitions from aggressive selling to rotational buying. Bearish divergences out of extended upper regions can support profit-taking or exploratory short positions. The EP-Stochastic basis helps reduce “false” divergences that arise from random noise. To get more divergence signals, consider switching to Mean-reversion mode and increasing the Efficiency Length to 20. Keep in mind that some divergences may appear “weird” or different from traditional divergence patterns—this is because they are based on Efficient Price, which uses a completely different detection engine in the background. ⚪ Breakout Trading For breakout and breakdown scenarios, use: Significant Stochastic Moves as evidence of a meaningful internal shift, Impulse markers to confirm that the move is carried by strong momentum, Inefficiency diamonds to recognize when the structure is becoming unstable. When price breaks a level and the EP Stochastic prints a Significant Move in the direction of the break, backed by fresh impulses, it signals that the breakout is supported by internal strength. ⚪ Reversal Trading Enable the reversal signals to identify potential turning points. Use them together with quick peaks in the stochastic oscillator. If the oscillator forms a peak and a reversal signal appears nearby, it strengthens the case for a reversal. However, if a reversal signal prints while the stochastic is simply leaning toward the upper or lower band without forming a clear peak, the signal carries less significance. ⚪ Interpreting Inefficiency Diamonds Inefficiency diamonds highlight imbalance points in the market. When they appear, they signal that price and order flow are no longer in harmony, creating unstable conditions. These imbalance points often lead to sharp or sudden moves as the market snaps to correct the inefficiency. Clusters of diamonds indicate a stronger imbalance and a higher likelihood of fast movement or abrupt shifts in direction. ⚪ Overview Panel Use the multi-timeframe dashboard as a context checklist rather than a mechanical entry system. It quickly answers: Are lower and higher timeframes pointing in the same direction? Are multiple frames overbought or oversold at once? Are impulses and inefficiency regimes showing up in isolation or in clusters? █ How It Works ⚪ EP Source and Pre-EP Layer The system begins by selecting an internal driver such as Close, Mean-reversion, or Trend. This source is evaluated through an efficiency model that measures how clean or noisy recent movement has been. Each increment is weighted by its structural quality and volatility conditions, producing a preliminary Efficient Price stream that favors meaningful directional progress over random chop. Calculation: Applies efficiency weighting, volatility normalization, and adaptive length control. The output is a first-stage EP path that encodes directional reliability. ⚪ Main EP Engine and Adaptive Refinement The preliminary EP stream is passed through a second refinement stage. This step smooths irregularities, boosts consistent movement, and remains sensitive to shifts in volatility regimes. The result is a fully refined Efficient Price path that forms the input for the EP-Stochastic rather than using raw highs and lows. Calculation: Uses a second ER pass with volatility moderation and cumulative weighting. The output is the core Efficient Price trajectory used to build the EP-Stochastic. ⚪ EP-Stochastic Construction Instead of calculating %K from raw price highs and lows, the oscillator is derived from where the refined Efficient Price sits within its own recent EP range. This keeps the stochastic familiar in shape but far more structurally coherent. Calculation: Determines the EP range over the selected window, computes %K from EP’s position within that range, and applies optional smoothing for the signal line. ⚪ Inefficiency–Trend This component evaluates the Efficient-Price-driven stochastic through two behavioral lenses: inefficiency and trend. Inefficiency highlights spike-driven, unstable, or imbalanced movement, while the trend component captures underlying slope, persistence, and regime strength. A smooth transition blends these two views depending on the system’s efficiency state. Calculation: Computes an inefficiency score from ER deviation and a trend score from normalized regression slope. A smoothstep blend transitions between them, and diamond markers appear when the oscillator confirms it is operating inside an inefficiency regime. ⚪ Momentum Impulse Momentum impulses isolate powerful rotations inside the EP-Stochastic. Only the sharpest acceleration bursts make it through, while routine oscillation is suppressed. Calculation: Applies chained non-linear transforms to exaggerate extreme deviations, compares them to local historical envelopes, performs a cluster check to avoid false bursts, and marks impulses only when the deviation is structurally significant. ----------------- Disclaimer The content provided in my scripts, indicators, ideas, algorithms, and systems is for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any financial instruments. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
Pine Script® indicator
by Zeiierman
60
OBV StochasticsThis indicator uses both a standard Stochastic Oscillator based on security prices and stochastically oscillated OBV values. Explanation: Stochastics measure momentum by comparing the current closing price to its lowest and highest price over a user-defined window of n periods. Without going too in depth, traders can view the K value as the current value for the stochastic indicator and the D value as a Simple Moving Average of K values. Users can adjust the length of that Simple Moving Average through modifying the smooth D parameter in the input option menu. Traders can also define the upper and lower bounds for both sets of K and D values. These are plotted on the graph as the horizontal red (upper) line and horizontal green (lower) line. Generally, the upper line is viewed as the threshold at which a security can be considered overBought. Conversely, the lower green line is the threshold at which they can be viewed as overSold. OBV, or On-Balance Volume, is a versatile momentum indicator that we discussed in our OBV Z-Scores open-source script. That is a good place to look if you're looking to gain a better understanding of the OBV indicator. By applying the stochastic formula to the OBV, it allows us to gain a better understanding of the current OBV value relative to its historical data and display the OBV in a {0.100} bounded range of values. Plotting the standard price-based Stoch. K and D in combination with the Stoch. OBV K and D can help identify divergences and track the progression and direction of trends. For example, you can see that when the two move in opposite directions or when one significantly outpaces the other, it often hints towards an impending reversal. The Graph: As mentioned the upper and lower overbought and oversold thresholds can be adjusted by the trader and are plotted on the graph in red and green. The green oscillating line represents the Stoch. K of OBV values, while the red line symbolizes the OBV D values. The teal line is the standard Stoch. K and the orange line is the standard Stoch. D. Users have two options for background highlights. The first option is to use green highlights to show entry signals and red highlights to show exit signals. These signals are based on the criteria we have set for identifying optimal entry and exit points. This is shown in the second pane. The second option is to plot red highlights whenever Stoch. OBV K crosses the upper bound and green highlights whenever it crosses the lower bound. This is shown in the bottom pane. NOTE: Choosing this option means that signals will not be displayed in sequential entry-exit order (instead this is a good option if traders only want to identify when the security is overbought or oversold). Input Options: Traders can adjust the respective smooth K and smooth D values for both the standard stoch. and OBV stoch. Additionally, the lookback window length can be adjusted as well as the upper and lower bounds(in addition to the display options shown above). Alerts: Indicator sends alerts when entry and exit conditions are met, as well as alerts to inform traders when overbought/oversold conditions are met. Alerts can be tailored for GunBot / other automated trading platforms upon request. ~Happy Trading~
Pine Script® indicator
by ProfitProgrammers