We provide two ways of reverse calculation. Current reverse value and forecasted value.
Current K and Current D option is just the simple reverse calculation of .
However, we found due to oscillator’s calculation (based on high, low and close), the indicator repaints or update value too much. For example, when price moves up, the reverse value also moves up a lot, it’s too reactive to the current price. So we made the reverse even better by forecasting the value by the open of next bar. This makes the indicator much more stable to the current price and allows you to anticipate the crossing of the oscillator one step ahead.
Even though it's "forecast", it's just simple math trick. The value of oscillator is calculated by the length of the sample size. When it does the calculation on the next bar, it will erase the last bar in the sample and add a new bar which equals to the one bar ago closing price. By moving all the data of price forward by one bar we produce a 100% accurate forecast of the value the indicator will produce by the closing of the current bar or open of next bar.
One usage of Using Forecast K and Forecast D is that you can anticipate the turning point one bar ahead:
One Bar before the actual cross
When they actually crossed
All display, The forecast K and D leads the current K and D by one bar, it's almost like one bar offset ahead.
Now we can apply this forecast VS original concept on reverse . It makes even more impact. It reduces lag and overshoot. It's also more stable to changes in the current price. So the reversal price value won't change too much intrabar.
Reverse Forecast VS Reverse Original
Reverse Forecast leads Reverse Current one bar ahead
One bar before cross
After they both cross
Our recommendation in K,D options:
For people who want to anticipate turning point earlier, they should use forecast K and forecast D options.
For people who like more confirmation, they should use current K and current D options.
Warning: For forecast value, even though its 100% accurate. The value can still change due to the next bar value. Eg: Current Bar close below forecast level, the next bar can close above to reverse the result.
Settings functions explanation:
K,D, and Smooth length is the same as K,D and smooth length
"Show cross value panel" and "Show overbought and oversold Panel" allows users to display or hide a panel with crossing or overbought and oversold price.
"Overbought and Oversold Style" changes the display of the overbought and oversold price of .
Option "Line Levels" plots horizontal lines of the price when K reaches overbought and oversold level.
Option "Bands" plots the historical running value of the price when K reaches overbought and oversold level. The user should tick off log display of the chart when they choose "Bands" option.
'Line Levels" and "Bands" have the same current value just different displays.
User can choose to plot or hide the overbought and oversold price by ticking and unticking the "plot overbought price" and "plot oversold price"
They can also adjust the oversold and overbought value of (Default is 80 and 20).
"Stoch Cross Smoothing" enables users to smooth out the reverse . It turns the reverse into a close to moving average smooth filter.
User can adjust the length of smoothing to change the smoothness of the filter.
"Plot Historical Value" the value when it crosses in the past on the running reverse .
User can choose the display K or D value when it crosses.
"Plot Crossing Circles" plots circles on the reverse when crosses.
There's a bug in Tradingview label system. When the background of the label is transparent, the text will get burry when we scroll in and out on the chart. When this happens, changing any settings on the panel could refresh the text display. It could also be avoided by ticking the "dark background" setting to make the background not transparent.
For prices that require more decimal places, users can type in the decimals places they want in the “decimal” setting.
Added Multi Time Frame Options, Tick "Use Multi Time Frame" to enable this function. Select the time frame in the "Multi Time Frame Resolution". Added More selections in the resolution such as 12 hours. The time frame selected should be higher than the current time frame. If not an error warning will appear.
Access to this script is restricted to users authorized by the author and usually requires payment. You can add it to your favorites, but you will only be able to use it after requesting permission and obtaining it from its author. Contact balipour for more information, or follow the author's instructions below.
TradingView does not suggest paying for a script and using it unless you 100% trust its author and understand how the script works. In many cases you can find a good open-source alternative for free in our Community Scripts.
Warning: please read before requesting access.