Introducing the worlds first StochasticLSMA. A powerful Stochastic that shows trends and highlights market tops/bottoms. This may be the ultimate tool in locating tops and bottoms on any timeframe.
How to tune the settings: Depending on what chart you use and what timeframe you are on it may be necessary to dial in the settings to correctly locate the tops and bottoms you wish to trade. Here are some settings to try:
32 < Finds longer term Tops and bottoms. 21 < Great for longer term tops and bottoms on hourly and daily charts. 19 < If 21 is not accurate enough. 17 < If 19 is not accurate enough. 13 <Great setting for short to mid range tops and bottoms and lower timeframes. (default) 11 9 6 < Excellent for finding shorter term tops and bottoms on all timeframes.
*Changing the “Stochastic Price” setting to “hl3” or “low” can help hone in on lows and highs.*
It can be very useful to to use 2 StochasticLSMA indicators with different settings. Here we have two examples how to use multiple indicators on the ETHUSD Daily chart. One set on 13 and the other on 6. A trader can enter on the 6 length indicator and exit on the 13. It also shows how it has the potential to filter out “bad entries” by matching the bottoms.
Example of different length settings.
Alerts: Overbought: K line crosses over overbought line (Red Dot) Oversold: K line crosses under oversold line (Green Dot) Buy Signal: K line is under oversold line and trends up (Green Up Arrow) Sell Signal: K line is over oversold line and trends down (Red Down Arrow) Last Chance Sell Signal: As K line leaves overbought line (Yellow Dot) Last Chance Buy Signal: As K line leaves oversold line (Yellow Dot)
Example of alert signals and trigger enabled in settings
Here is an example of using multiple timeframes to find entries on the BTC 30min chart. The 1 hourly pumps as the 30 min dumps creating a "mirror image"