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JMA double stochastic
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The power of using low-lag, ultra smooth indicators is that you can safely experiment with feeding one indicator to another without signal degradation. Here is one such example... In this experiment, we fed a JMA based fast %K stochastic into another identical stochastic and plotted the results. This double stochastic analyzes market acceleration, which is synchronized with rapid market reversals, typically found in a tight trading range. Note how well this double stochastic aligns with price reversals in the following chart. |

Additional code was written in TradeStation 8 to produce the RED-BLUE color changes.