This is Mr. Sylvian Vervoort's take on improving some well-known indicators (%B and Stoch) using smoothing techniques. A combination of TEMA and WMA does a nice job smoothing out %B, derived from zero-lag “Rainbow” data series. The same Rainbow series, averaged with the typical price, smooth the Stochastic K oscillator to produce slowStoch.
Vervroot's strategy for this oscillator (detailed explanation in the reference material below):
- It must be bullish for a buy signal and bearish for a sell signal. This means that both the oscillators must be moving up or down.
- Use the oscillators for detecting divergences. Divergence even in one is still valid.
- Stoch crossing 50 is a good confirmation signal. Momentum usually is an excellent leading indicator, so keep an eye on Stoch.
More info:
www.traders.com/Docu...013/09/Vervoort.html
www.scribd.com/doc/1...82736057/2013SEP-pdf
Complete list of my indicators (Check the comments, I keep the list updated there):
Vervroot's strategy for this oscillator (detailed explanation in the reference material below):
- It must be bullish for a buy signal and bearish for a sell signal. This means that both the oscillators must be moving up or down.
- Use the oscillators for detecting divergences. Divergence even in one is still valid.
- Stoch crossing 50 is a good confirmation signal. Momentum usually is an excellent leading indicator, so keep an eye on Stoch.
More info:
www.traders.com/Docu...013/09/Vervoort.html
www.scribd.com/doc/1...82736057/2013SEP-pdf
Complete list of my indicators (Check the comments, I keep the list updated there):
List of my free indicators: bit.ly/1LQaPK8
List of my indicators at Appstore: blog.tradingview.com/?p=970
List of my indicators at Appstore: blog.tradingview.com/?p=970
//
// @author LazyBear
// List of all my indicators: https://www.tradingview.com/v/4IneGo8h/
//
study(title="Vervoort Smoothed Oscillator [LazyBear]", shorttitle="SV%BStoch_LB")
lengthStdev = input( 18, title="StdDev lookback")
mult=input(2.0, title="StDev Mult Factor")
smooth = input(3, title="calc_tema smoothing")
periodK = input(30, title="PeriodK")
smoothK = input(3, title="SmoothK")
calc_tema(src, length) =>
e1 = ema(src, length)
e2 = ema(e1, length)
e3 = ema(e2, length)
3 * (e1 - e2) + e3
sma2=sma(close,2)
dsma2=sma(sma2,2)
tsma2=sma(dsma2,2)
qsma2=sma(tsma2,2)
psma2=sma(qsma2,2)
ssma2=sma(psma2,2)
s2sma2=sma(ssma2,2)
osma2=sma(s2sma2,2)
o2sma2=sma(osma2,2)
desma2=sma(o2sma2,2)
rainbow = (5*sma2+4*dsma2+3*tsma2+2*qsma2+psma2+ssma2+s2sma2+osma2+o2sma2+desma2)/20
ema1 = ema( rainbow, smooth )
ema2 = ema( ema1, smooth )
zlrb = 2 * ema1 - ema2
tz = calc_tema( zlrb, smooth )
hwidth = stdev( tz, lengthStdev )
zlrbpercb = (tz + mult*hwidth - wma(tz,lengthStdev)) / (2*mult*hwidth)*100
rbc = avg(rainbow, hlc3)
nom = rbc - lowest( low, periodK )
den = highest( high, periodK ) - lowest( rbc, periodK )
//fastK = 100*nom/den // No Stoch clipping version
fastK = min( 100, max( 0, 100 * nom/den ) )
hline(0)
hline(50)
hline(100)
slowKOBLevel=input(80)
slowKOSLevel=input(20)
sk=sma( fastK, smoothK )
bs = (sk > slowKOBLevel) ? slowKOBLevel : sk
us = (sk < slowKOSLevel) ? slowKOSLevel : sk
bl=plot(bs, color=red, style=circles, linewidth=0)
ul=plot(us, color=red, style=circles, linewidth=0)
tl=plot( sk, title="SlowK", color=red, linewidth=2 )
fill(bl, tl, color=red, transp=90)
fill(ul, tl, color=blue, transp=90)
plot( zlrbpercb , title="Zero Lag Rainbow %B", color=blue, linewidth=2 )