Trigonometric Stochastic

Trigonometric Stochastic - Mathematical Smoothing Oscillator

Overview

A revolutionary approach to stochastic oscillation using sine wave mathematical smoothing. This indicator transforms traditional stochastic calculations through trigonometric functions, creating an ultra-smooth oscillator that reduces noise while maintaining sensitivity to price changes.

Mathematical Foundation

Unlike standard stochastic oscillators, this version applies sine wave smoothing:

• Raw Stochastic: (close - lowest_low) / (highest_high - lowest_low) × 100
• Trigonometric Smoothing: 50 + 50 × sin(2π × raw_stochastic / 100)
• Result: Naturally smooth oscillator with mathematical precision

Key Features

Advanced Smoothing Technology
• Sine Wave Filter: Eliminates choppy movements while preserving signal integrity
• Natural Boundaries: Mathematically constrained between 0-100
• Reduced False Signals: Trigonometric smoothing filters market noise effectively

Traditional Stochastic Levels
• Overbought Zone: 80 level (dashed line)
• Oversold Zone: 20 level (dashed line)
• Midline: 50 level (dotted line) - equilibrium point
• Visual Clarity: Clean oscillator panel with clear level markings

Smart Signal Generation
• Anti-Repaint Logic: Uses confirmed previous bar values
• Buy Signals: Generated when crossing above 30 from oversold territory
• Sell Signals: Generated when crossing below 70 from overbought territory
• Crossover Detection: Precise entry/exit timing

Professional Presentation
• Separate Panel: Dedicated oscillator window (overlay=false)
• Price Format: Formatted as price indicator with 2-decimal precision
• Theme Adaptive: Automatically matches your chart color scheme

Parameters

• Cycle Length (5-200): Period for highest/lowest calculations
- Shorter periods = more sensitive, more signals
- Longer periods = smoother, fewer but stronger signals

Trading Applications

Momentum Analysis
• Overbought/Oversold: Clear visual identification of extreme levels
• Momentum Shifts: Early detection of momentum changes
• Trend Strength: Monitor oscillator position relative to midline

Signal Trading
• Long Entries: Buy when crossing above 30 (oversold bounce)
• Short Entries: Sell when crossing below 70 (overbought rejection)
• Confirmation Tool: Use with trend indicators for higher probability trades

Divergence Detection
• Bullish Divergence: Price makes lower lows, oscillator makes higher lows
• Bearish Divergence: Price makes higher highs, oscillator makes lower highs
• Early Warning: Spot potential trend reversals before they occur

Trading Strategies

Scalping (5-15min timeframes)
• Use cycle length 10-14 for quick signals
• Focus on 20/80 level bounces
• Combine with price action confirmation

Swing Trading (1H-4H timeframes)
• Use cycle length 20-30 for reliable signals
• Wait for clear crossovers with momentum
• Monitor divergences for reversal setups

Position Trading (Daily+ timeframes)
• Use cycle length 50+ for major signals
• Focus on extreme readings (below 10, above 90)
• Combine with fundamental analysis

Advantages Over Standard Stochastic

1. Smoother Action: Sine wave smoothing reduces whipsaws
2. Mathematical Precision: Trigonometric functions provide consistent behavior
3. Maintained Sensitivity: Smoothing doesn't compromise signal quality
4. Reduced Noise: Cleaner signals in volatile markets
5. Visual Appeal: More aesthetically pleasing oscillator movement

Best Practices

• Market Context: Consider overall trend direction
• Multiple Timeframe: Confirm signals on higher timeframes
• Risk Management: Always use proper position sizing
• Backtesting: Test parameters on your preferred instruments
• Combination: Works excellently with trend-following indicators

Built-in Alerts

• Buy Alert: Trigonometric stochastic oversold crossover
• Sell Alert: Trigonometric stochastic overbought crossunder

Technical Specifications

• Pine Script Version: v6
• Panel: Separate oscillator window
• Format: Price indicator with 2-decimal precision
• Performance: Optimized for all timeframes
• Compatibility: Works with all instruments

Free and open-source indicator. Modify, improve, and share with the community!

Educational Value: Perfect for traders wanting to understand how mathematical smoothing improves oscillators and trigonometric applications in technical analysis.