Multi-Period Stochastic Oscillator -> PROFABIGHI_CAPITAL

🌟 Overview

The Multi-Period Stochastic Oscillator → PROFABIGHI_CAPITAL fuses multiple Stochastic sets across varying periods into a weighted composite for nuanced momentum detection, blending fast reactivity with slow confirmation to pinpoint overbought/oversold turns and crossovers.

It empowers traders to weigh timeframe sensitivities and spot consensus alignments for high-probability reversals in ranging or trending conditions.

👁️ Stochastic Sets

– Enable Stochastic Set 1: Toggle to incorporate a fast set tuned for short-term price swings and quick signals.
– Stoch1 K/D/Smooth Periods: Adjustable lookbacks and smoothing for %K raw calculation, %D signal, and noise reduction in Set 1.
– Enable Stochastic Set 2: Toggle to add a medium set for balanced intermediate momentum without excessive lag.
– Stoch2 K/D/Smooth Periods: Customizable periods for %K, %D, and smoothing tailored to Set 2's responsiveness.
– Enable Stochastic Set 3: Toggle to include a slow set for validating sustained trends over longer horizons.
– Stoch3 K/D/Smooth Periods: Configurable lookbacks for %K, %D, and refinement in Set 3.
– Enable Stochastic Set 4: Toggle to blend a custom set for personalized sensitivity adjustments.
– Stoch4 K/D/Smooth Periods: Flexible periods for %K, %D, and smoothing to fit specific strategies in Set 4.

⚖️ Weights

– Weight Stoch1/Stoch2/Stoch3/Stoch4: Proportional influences from each set in the composite, allowing emphasis on faster or slower components for tuned bias.

👁️ Display Settings

– Smoothing Length: Period to exponentially average the composite for smoother trend depiction.
– Show Individual Stochastics: Option to overlay separate set lines for multi-period divergence checks.

📏 Levels

– Overbought Level: Upper boundary signaling potential exhaustion from upward momentum.
– Oversold Level: Lower boundary indicating possible rebound from downward pressure.
– Neutral Upper/Lower: Inner thresholds framing the range for transitional bullish or bearish leans.

🎨 Colors

– Overbought Color: Shade for extreme upper zones and sell cautions.
– Oversold Color: Tint for deep lower zones and buy opportunities.
– Neutral Color: Hue for balanced readings in sideways action.

🔧 Stochastic Oscillator Function

The core routine derives %K from closing price position within recent high-low ranges, smooths it, then generates %D as a moving average signal for crossover confirmation.

📈 Calculations

– Individual Sets: Computes %K and %D for each enabled set using price extremes over specified lookbacks.
– Weighted Composite: Averages %K values proportionally by weights to form a unified momentum proxy.
– Signal Derivation: Applies simple moving average to the composite for a secondary %D line to detect turns.
– Smoothing Finish: Exponential average on the blend for refined, lag-minimized output.

📡 Signals

– Crossover Triggers: Bullish on rises above oversold; bearish on drops below overbought for reversal entries.
– %K/%D Crosses: Upward in lower half for bullish momentum; downward in upper for bearish.
– Midline Momentum: Breaks above 50 for upside confirmation; below for downside.
– Extreme Alerts: Deep oversold with positive change for strong buys; overbought with negative for sells.
– Consensus Alignment: All sets above midline for bullish unity; below for bearish.
– Divergence Scans: Price lower lows with higher oscillator lows for bullish; opposite for bearish.
– Strength Indicators: Absolute levels measure conviction across periods.

📉 Visualization

– Composite Lines: Thick %K plot tinting by zone, with thinner %D for crossover visuals.
– Individual Overlays: Faint %K/%D pairs for active sets, revealing timeframe-specific behaviors.
– Reference Lines: Dashed extremes, dotted neutrals, solid midline for level orientation.
– Zone Fills: Gentle shading in overbought/oversold for emphasis.
– Signal Markers: Tiny triangles for crossovers and circles for %K/%D interactions.
– Info Table: Top-right grid with composite and set values, signals, consensus, and strength in dynamic colors.

🔔 Alerts

– Crossover Notices: For oversold buys or overbought sells.
– Cross Warnings: On %K above/below %D in respective halves.
– Midline Shifts: For 50-level momentum changes.
– Extreme Flags: For deep turns with velocity.
– Consensus Triggers: When sets align above/below midline or in extremes.
– Divergence Alerts: For bullish/bearish mismatches.

✅ Key Takeaways

– Multi-set fusion yields layered Stochastic insights beyond isolated views.
– Weights and toggles fine-tune for scalping speed or swing patience.
– Crosses and consensus layer confirmations for reliable edges.
– Table and markers distill complexity into actionable glances.