This is the Stochastic Oscillator but now instead of reading it raw we sum the stochastic over a window and then take the cumulative sum of the difference. This allows us to have a much smoother representation of the stochastic while seeing the true momentum relative to it. I hope you can find this useful!
Refresher on Stochastic: Stochastics are range bound momentum oscillators. They calculate values between 0 and 1 which are usually plotted as 2 lines. These indicators are primarily used for identifying overbought and oversold conditions, line crossovers, divergences and increases in buying or selling pressure.
Hello my friend, I stumbled across this indicator by chance and have to say that it is working fantastically well for my particular trading style. It filters out a lot of false signals and has really optimized my system. Such a simple concept, easy to read and has slotted in beautifully (that said, I have made a few visual adjustments for my particular perception of the market). Will it work for everyone? Maybe not, but it is certainly working for my particular brand of trading. I have a few ideas on how to maybe refine it and will let you know when I get around to doing some tests. Well done.