The double smoothed Stochastic indicator is similar to the standard Stochastic. The difference is the double smoothing. This feature of the oscillator does help to overcome some of the limitations of the standard Stochastic oscillator to a certain extent. This relates to the Stochastic Oscillator's tendency to fail when the market is trending strongly.

The result is a smoother indicator that responds slower to price fluctuations, enabling its usefulness even when the market is trending. This indicator can be used in the same manner as any other oscillator - buy when the indicator is signaling oversold conditions and sell when it reaches relatively high values. Make sure that you are aware of the overall trend and also significant areas of support and resistance. The indicator can be used on any timeframe chart either for scalping on lower one minute chart or daytrading on higher timeframes.

Parameters

• StochasticLength - indicator calculation period.
• SmoothEMA - averaging parameter for the double smoothed indicator values.
• SignalEMA - variable period of the moving average for the signal indicator value.
• oversoldlevel - oversold level (a line will be drawn for easy visual reference).
• overboughtlevel - overbought level.