DSS Bressert by MaxCap

DSS Bressert by MaxCap is an enhanced version of the Double Smoothed Stochastic (DSS) oscillator, originally developed by Robert Bressert.

It is designed to identify overbought/oversold market conditions and detect momentum shifts using a double-smoothing stochastic calculation.

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⚙️ How It Works

This indicator applies a two-stage stochastic calculation with double exponential smoothing to reduce noise and provide smoother trend signals.
1. Phase 1 (MIT):
A standard stochastic is calculated over the selected Stochastic_period, measuring the current close relative to the high-low range.
This value is then smoothed using an exponential moving average (EMA).
2. Phase 2 (DSS):
A second stochastic is applied on the smoothed MIT line using the same stochastic period, followed by another EMA smoothing step.
The result is a smooth and responsive momentum oscillator that filters out market noise.

This double-smoothing technique allows DSS to remain responsive to price changes while avoiding false reversals that are common with the traditional stochastic.

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🎨 Visualization
• The orange line represents the main DSS value.
• Blue dots appear when DSS is rising (bullish momentum).
• Red dots appear when DSS is falling (bearish momentum).
• The horizontal levels 20 and 80 mark oversold and overbought zones, respectively.

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🧠 Signal Interpretation
• DSS > 80: Overbought zone — possible downward reversal.
• DSS < 20: Oversold zone — possible upward rebound.
• DSS rising after crossing above 20: Bullish signal.
• DSS falling after crossing below 80: Bearish signal.
• Color change (blue ↔ red) may indicate a momentum shift.

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⚙️ Input Parameters

Parameter Description Default Value
EMA Period EMA smoothing period 8
Stochastic Period Period for stochastic calculation 13


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💡 Advantages
• Smoother and more reliable than a standard stochastic.
• Reduces market noise and false signals.
• Accurately reflects real momentum shifts.
• Color-coded visualization for clearer signal reading.

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