This is another variant of the stochastic indicator. The normal stochastic indicator gives buy, sell signals many times even if the price is trading in a single direction. This indicator gives fewer signals i.e. filters out false signals and gives a clear alert on screen for buy or sell.
Another point, which I must disclose here is that I’m not the original coder of this indicator. I’ve changed some code and added alerts.
The usage is self-explanatory. More examples for this indicator can be found at my website.
- Use on higher timeframe like H4. On shorter time frames, this indicator may not work properly.