DSS is similar to Stochastic except for this Indicator we use what is called double exponentially smoothing. This will give the trader a more speedy response to price changes which tends to smooth out the erratic movements of a regular Stochastic.
Because its always best to know what the larger timeframes are doing. I have adopted the tactic of overlaying the larger chart of DSS over the smaller chart to gauge whats going on overall and to pint point best entry or exit points.
I have left it adjustable for the user so they can tweak which size of charts they think is best but I've set it at a standard factor of 5 times larger than the main smaller chart.
Double Smoothed Stochastic Calculation is:
- DSS = EMA(r) (X - Lxn / Hxn - Lxn) x 100
- MIT = EMA(r) (close - Ln / Hn - Ln) x 100
- Ln = lowest low of n periods
- Hn = highest high of n periods
- Lxn = lowest low of the price series X of n - periods
- Hxn = highest high of the price series X of n - periods
- X = latest price of the price series X
Features :
- Customizable so the user can input the required size of charts to overlay.
- Can change the color of the charts and arrows.
- Has choices of which alarms we want to use.
- Can be traded on any market and timeframe. (I tend to see more accurate signals on larger timeframes such as the 1hr chart)
Settings :
Small Chart
- EMA - Settings for smaller chart
- Stochastic - Settings for smaller chart
Large Chart
- EMA - Settings for larger chart
- Stochastic - Settings for larger chart
Graphical Object Settings
- Bull Arrow - Sets color of bull arrow
- Bear Arrow - Sets color of bear arrow
- Bull DSS - Sets color of bull DSS
- Bear DSS - Sets color of bear DSS
Alert Settings
- Soundfile - Sets the wave file used contained within folder program files > mt4 > sounds
- PlaySound - true means we here our PC alarm, false means we don't hear our PC alarm.
- MessageBox - true means we see a message box, false means we don't see a message box
- SendeMail - true means we get an alert sent to our email, false means we don't get an alert sent to our email.
- SendMobile - true means we get an alert sent to our mobile device, false means we don't get an alarm sent to out mobile device.
