This indicator is derived from Bressert’s works in market cycles (Double Smooth Stochastic). It is converted from MT4 code and it is a part of a complete trading strategy of scalping, I certainly post on forums soon.
The DSS indicator is intended to spot overbought and oversold areas with less false signals than any other stochastic indicator. When the oscillator remains longer into one of the area, it is the beginning of a trend change.
I found it useful to spot price rebound while in a already formed trend. Of course, because stochastic is most used to find price reversal over a calculated price center, this indicator can also be nicely used in ranging markets.
once DssBuffer = 50
once MitBuffer = 30
smoothcoefficient = 2.6 / (1 + EMAperiod)
if barindex>STOperiod then
//price range definitions
HighRange = Highest[STOperiod](high)
LowRange = Lowest[STOperiod](low)
delta = Close - LowRange
rrange = HighRange-LowRange
if rrange = 0 then
rrange = 1*ticksize
MIT = delta/rrange*100.0
MitBuffer = ROUND(smoothcoefficient * (MIT - MitBuffer) + MitBuffer)
for i = 0 to Stoperiod do
delta = MitBuffer - LowRange
DSS = delta/(HighRange - LowRange)*100.0
DssBuffer = smoothcoefficient * (DSS - DssBuffer) + DssBuffer
// 30.144.255 / blue
// 255.105.180 / hot pink
RETURN dssbuffer as "DSS Bressert Scalper", 20 coloured(102,102,102) as "20 level", 80 coloured(102,102,102) as "80 level"
No information on this site is investment advice or a solicitation to buy or sell any financial instrument. Past performance is not indicative of future results. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.ProRealTime ITF files and other attachments :