Double Smoothed Stochastics (W. Bressert):

Indicator Description

The Bressert Double Smoothed Stochastic, as introduced by Walter Bressert (DSS Bressert), is identical to the Double Stochastics indicator that comes preinstalled with NinjaTrader 8. Our version contains the following improvements:

• The NinjaTrader default version calculates the K-line with a smoothed SMA(3) whereas our version allows for alternative smoothing periods.
• The indicator comes with a signal line
• The NinjaTrader default version can only be used with price as input. This indicator has been recoded so that you may also apply it to other indicators. To do so, simply select a different indicator as input series.

Bressert Double Smoothed Stochastic vs. Blau Double Smoothed Stochastic:

Stochastics by George Lane: The (Close – Low_n) / (High_n – Low_n) is calculated, usually with n= 14. The resulting value is then smoothed 2 times with a SMA:

• K-Line smoothed with a SMA(3)
• D-Line smoothed with a SMA(7)

In other words, the reference period (14) is differentiated from the first smoothing SMA(3) and the second smoothing SMA(7), borrowing from the raw stochastics concept (first smoothing SMA(3) and the second smoothing SMA(7)).

Double Smoothed Stochastics by William Blau: In this version the numerator = (Close – Low_n) and denominator (High_n – Low_n) each exponetially smoothed two times.

• The K-Line is then calculated using the raw stochastics. As opposed to George Lane, William Blau applies an EMA to do so.
• The main concept here is the individual smoothing of the raw stocastics components, using an EMA

Double Smoothed Stochastics by Walter Bressert: The Stochastics K-Line is calculated without modifing the raw stohcastics components. Subsequently a EMA is used in the final K-Line calculation.

• From the resulting value a new Stochastics is calculated, i.e. a smoothed stochastics is used for this step.
• The main concept here is first calculating the raw stochastics, EMA smoothing, raw stochastics and again smoothing with an EMA

The Double Smoothed Stochastics (Bressert) is best used in combination with a mid/higher time frame trend filter, confirming setups with volume analyis. You may for example review the ADXVMA, Directional Movement Index (DMI), Trigger Lines, Sine WMA, Volume Weighted Standard Deviation and the Relative Volume / Relative Ranges indicators as discussed in our Indicator Spotlight newsletter.

Other library indicators

Other than this version of the Double Smoothed Stochastics, the momentum oscillators category feature a number of other entries, including the Awesome Oscillator, LBR 3/10 Oscillator, Double Smoothed Momentum (Blau), Double Smoothed Stochastics (Blau)  Fast Stochastics, Stochastic Momentum Index, Projection Oscillator and the Traders Dynamic Index (TDI). The TDI indicator was reviewed in the Indicator Spotlight newsletter. The Ichimoku Kinko Hyo, also discussed in our Indicator Spotlight, has certain similarities with the MACD and the Donchian Channel mid line.

The DSS Bressert indicator is available for NinjaTrader 8.