In technical analysis of securities trading the "stochastic indicator" is a "momentum indicator" that uses support and resistance levels. Dr. George Lane developed this indicator in the late 1950s. The term stochastic refers to the point of a current price in relation to its price range over a period of time. This method attempts to predict price turning points by comparing the closing price of a security to its price range. The 5-period stochastic oscillator in a daily timeframe is defined as follows:
where H5 and L5 are the highest and lowest prices in the last 5 days respectively, while %D is the 3-day moving average of %K (the last 3 values of %K). Usually this is a simple moving average , but can be an exponential moving average for a less standardized weighting for more recent values. There is only one valid signal in working with %D alone — a divergence between %D and the analyzed security."
"in reality the "stochs" are just the rank of price plus a "sma" and have no predictive powers and are only a lagging description of price which helps with providing some context but treating it as anything more has led many to make wrong assumptions based on its direction or its value. "
The term stochastic is from the "stochastic process" which is a random process that can be defined as a collection of random variables that is indexed by some mathematical set, meaning that each random variable of the stochastic process is uniquely associated with an element in the set. Which makes the use of the term by Dr . George Lane pretty ironic.
"This indicator is an attempt to improve upon the concept by sampling more of the data and combining multiple ranks to have a more accurate picture of price movement. Also hopefully to educate people about its shortcomings as well.
The concept was inspired by a crypto youtuber but we wanna make sure the community understands that this is not a "copy" its merely a "bioequivalent" made from diligent and methodical reverse engineering . so please if you use this and still wanted to purchase it please refer to the closed source equivalent.
We hope the community gets a kick out of it but more importantly get a different perspective on the mechanics of the stochastic oscillator. We also encourage modification and reuse of the code since we passed on a few ideas for exact graphical duplication. "
This is insane. Do you even have the paid version? no way lol
balipour
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@balipour, just so people can see this crypto youtuber's version so they can appreciate the work. That top one is 300/MO subscription lol .
Supernova432
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@balipour, hopefully he can also reverse engineer reverse stoch and expected moves , ohh no wait, someone gets butt hurt if they see someone else recreate any volatility based indicator lol
balipour
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@Supernova432, no my friend. if people only published ones right after we showed them, made a copy with the same name, colors and settings at least as how they appear to them and never mention or give us credit then sure leech we get "butt hurt". nothing we're offering we're claiming some nonsense copyrights to and literally anyone smart could make what we make and probably even in some way improve upon them.
however, it's really interesting that all this time has passed and not one person has. most don't even know why their copies aren't worth anything because they're doing the wrong math. they might be all "volatility based" to u but then ur probably the type who thinks atr is volatility too and it's not 2017 anymore.
Also smart people have and do make copies but again its interesting that they either make ones for themselves or come and work with us instead of trolling for likes.
when you attack things that's clearly logical and factual then you have to ask what's the upside of being in the camp of people who when u say well math says this they say well math might say the but..." rhetorical question. your answer if you have one doesn't mean anything to someone like me.
balipour
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@Supernova432, Everyone here is free to "recreate" anything they'd like (given they follow house rules). As a matter of fact some smart people have made copies our stuff and in some cases even have added things to add to their functionality.
However, they all either use them privately or have joined us to add to our ever growing brain trust. lol
I can get into details of each case but by your statement it's clear that you're an agent of the reality denying and math hating camp and not interested in things like the truth or facts. So no reason to entertain your insane ideas. Just as a public service announcement and maybe for someone like you who could definitely use the help...
Non of the scam copies that were publish right after we showed them ours and that have the same name, same colors and same setting (at least as they appears to them) are correct and we might even show how dumb their versions are if we get some time.
Furthermore, it's clear you don't even understand the principle issue with the scam copies which is their incorrect math which is misleading and potentially even harmful to the end user.
Also, just a note to yourself, the math people are on the side of reason. The fake gurus and people who hate the math people because it exposes them aren't. So i'm not sure why anyone would like to advertise their membership to their clubs.
People fall then crawl all the way to their houses only not to admit that they had fallen in the first place to be crawling instead of walking home.
Supernova432
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@balipour, bro here you are hailing this guy when he is using exact same colors/layout and without a doubt implying its exact copy of it, so its a bit hypocritical of you that you dont like when someone else does that to your indicators.
Also you are not first one to come with the idea of expected moves, its widely researched topic and people have been using it to trade options for decades. There are thousands of books with probability cones and all sorts of statistical data science behind trading.
Also i remember laughing at your expected moves indicator just few months ago when you didnt even know how to use it properly. You recently started using it with 'close[1]' past bars instead of 'close' future bars making all the targets Krown was giving out in the past wrong as the price kept on changing intraday.
I am pretty sure you know know even on tradingview itself 'UCSGears was the first one to publish expected moves, so there is no need to brag that what you have created is some novel PhD research based indicator. While coming to your reverse Stoch indicator the concept and idea is quite similar to previously researched and published work by well known authors related to predicting moving average crossover before it happens. Some examples here
Finally, i have no problem with your indicators, its just that if anyone ever disagrees with your point of view, you dont even have basic manners to have a constructive dialogue with them. No wonder people are usually afraid even to argue with you and end up following you like a sheep. Coming to you other point i hate maths and blah blah, again strawman argument. I am a PhD Power Electronics Engineer and currently working in one of the leading Electric Car Companies, all we do it based on math on science, so dont just assume if someone disagrees with you they hate math.
balipour
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@Supernova432, You're not so bright are you? I didn't invent the concept of "Expected move" Mr. PhD. How can you not know the basic properties of every distribution? lol.
You can do a google search and know that don't need a PhD or thousands of books. That's what makes it funny that idiots like you and the rest can't/couldn't get it or do/did the math wrong then hate from a far and say stupid things.
With HVP, I definitely came up with it but the name sorta is descriptive isn't?
Also, I personally know most of the idiots who published with the wrong math. They're from the cave...errrr the swamp where we showed them ours and told them well the dumb way of doing it is just multiple everything together. So they did and published, etc.
If you need it to be more spelled out for you. Our stuff was free (then only accurate/ correct one) and we didn't **name it things to hide** the fact that they're basic things packaged and priced as next level premium stuff and your master scammer charges disgusting amounts of monies for his basic garbage.
Again to reiterate don't make "promises" we encourage you to copy our stuff if you can. But don't just take the name and publish garbage only showing you don't grasp the concept.
You should never advertise your affiliations, who is giving you PhDs in anything? haha
Also, odd because I posted the 2nd reply only because the 1st one didn't show up earlier here (some sorta bug). However, still good because it got you to say more things which is always a win for the smart camp. Never once does your camp make a point based on logic or merit. Just dumb statements and claims.
balipour
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@Supernova432, "Also i remember laughing at your expected moves indicator just few months ago when you didnt even know how to use it properly. You recently started using it with 'close' past bars instead of 'close' future bars making all the targets Krown was giving out in the past wrong as the price kept on changing intraday."
"I am pretty sure you know know even on tradingview itself 'UCSGears was the first one to publish expected moves, so there is no need to brag that what you have created is some novel PhD research based indicator"
Ask your master he used to say "Bali is never wrong." To save myself from checking back here. Yeah what's funny that the idiots say things like that then think they deserve my attention and time. Maybe once one of you say something relatively not dumb.
I don't think this will stop the idiots but Mr. PhD price is log normal. So go back and study high school stats first maybe then waste my time.