Comments on: Double Stochastic

By: Chart of E-Mini Dow Futures for Friday, 18 Feb 2011 « Strategesis

Chart of E-Mini Dow Futures for Friday, 18 Feb 2011 « Strategesis — Sun, 20 Feb 2011 20:46:12 +0000

[...] Cyclone [Dim-gray background, red/green signal line]: The Cyclone indicator is based on the commonly-used Stochastics indicator. It computes %K exactly the same, but computes %D using a triple-exponential moving average (instead of using a simple moving average.) As I normally use it, I don’t even have it show the plot of %K (it can, if desired.) I do have it show %D as a thin, dotted gold line. But for trading, I rely more on the Inverse Fisher Transform of %D, which is plotted as a relatively thick line whose color shifts between red and green (red when the line is moving down, green when it is moving up.) Also plotted as a thin gold/orange line is the inverse Fisher Transform of %D of Cyclone applied to %K recursively (my variation of “Double Stochastics.”) [...]

By: Doug Tucker

Doug Tucker — Sat, 21 Nov 2009 16:37:27 +0000

The double stochastic is a different formula than a regular stochastic. Changing the parameters of a regular stochastic won’t simulate the double stochastic. You need to actually imped the regular stochastic within another stochastic formula. You might be able to find the formula already written in eSignal if you google around or check the forums.

By: damniel sternthal

damniel sternthal — Sat, 21 Nov 2009 14:04:59 +0000

Read your article with great interest.
I have access to the standard Stochastics on eSignal with inputs %K, %K, %D for modifying it.
What are the parameters for the %K, %K, %D for the Double Stochastic.
Thanks….Daniel

By: Al

Al — Sun, 07 Dec 2008 19:52:47 +0000

Hi,
The writeup(s) are well conceptualized and content is very helpful in expressing the viewpoints. Great Work, Appreciate the same.
On the issue of not giving any parameter settings etc., i agree that these are proprietory studies and one should set up what’s workable for them, however if you could provide any info or links to obtain such parameter settings in order to further understand the subject shall be just great. Once again, great work.

By: JR Smith

JR Smith — Thu, 23 Oct 2008 21:48:53 +0000

Is there a ninja scriptfile available for the Double Stochastin indicator?

By: Dean Davis

Dean Davis — Thu, 21 Aug 2008 02:45:59 +0000

Thanks for this Doug

By: Scott Williams

Scott Williams — Sun, 17 Feb 2008 18:07:29 +0000

I’ve been using the 10 period double stochastic (DS) to trade the QQQQ, by waiting for the 60 minute DS to turn up thru 10 (or down thru 90) then entering each time the direction of the 15 minute DS aligns with the direction of the 60 minute DS (i.e when the 60 and 15 minute DS’s are both rising or falling). But as your article addresses, I have been missing extended rallies as the DS’s stay overbought (or oversold). So per your example, I’ve overlaid both the 5 and 10 period DS’s (in both timeframes), and will see if that makes a difference in terms of:
1. Good Long entries using 5 DS dips when the 10 DS is ‘overbought’
2. Using the 5 DS for a slighly earlier long entry (i.e while the 10 DS is less than 10 and flat, but not yet turned up).

It looks like you use 80/20 for your upper/lower crossovers (vs my 90/10). I’ll have to watch for which works better with both DS’s.

Also combining two DS’s in two time frames may create confusing signals or may add additional confirmation …. time will tell.

By: Hank W. denHaring

Hank W. denHaring — Mon, 14 Jan 2008 04:46:49 +0000

Hi there!
Interesting article! How do you set up a double stochastic like that? I have a normal charting package and can make changes to the Stochastics.
I’d appreciate your help!
Thanks!
Hank