Multi-Length Stochastic Average
By LuxAlgoSep 20, 2021
Multi-Length Stochastic Average blends stochastic oscillators of every period from 4 up to a user-defined maximum into one average. The payoff is double: an oscillator more reactive than any single long lookback, and a direct read on where price sits relative to rolling maximums and minimums across the whole span of periods. The line prints 0 only when price matches every rolling minimum in the range, and 100 only when it matches every rolling maximum.
How to Trade the Multi-Length Stochastic Average?
- Crosses of the 20/80 levels: marked with circles. These transitions time trades better than watching slope alone or waiting for the 50 mark to give way.
- Extremes at 0 or 100: every measured lookback agrees price is pinned to its lows or highs, the strongest statement of stretch the tool can make.
- Direction and strength: read it like any bounded oscillator from the momentum family; sustained readings on one side of 50 accompany trending conditions.
Pre-smoothing the source (a 20-period simple average, for instance) makes the color coding and crossing circles more pronounced. Stay alert to retracements inside a trend, which can bend the oscillator without ending the move.
Multi-Length Stochastic Average Settings
- Length: the largest stochastic period included; every period from 4 up to it contributes to the average.
- Source: the series the stochastics are computed from.
- Pre-Smoothing (1st Input): how much smoothing hits the source before calculation.
- Pre-Smoothing (2nd Input): the pre-smoothing method.
- Post-Smoothing (1st Input): smoothing applied to the finished oscillator.
- Post-Smoothing (2nd Input): the post-smoothing method.
Available methods are a simple, triangular, or least-squares moving average, plus "None" for raw output; the least-squares option can overshoot when used for post-smoothing.
Frequently Asked Questions
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