Concept
Double Stochastic
Double Stochastic is a Momentum & Oscillators concept. The Library holds 1 implementations, each one a working definition you can pull into Quant.
Top Double Stochastic indicators
1 total
What is a Double Stochastic?
A Double Stochastic runs the stochastic calculation twice. Price is first converted into a Stochastic Oscillator reading; that output is then ranked within its own range a second time, with smoothing at each stage, producing a 0-100 oscillator that is far smoother than a raw %K yet still travels decisively into its extremes.
The name covers more than one published recipe. The variant usually credited to Walter Bressert applies the %K formula twice with EMA smoothing after each pass, while William Blau's double-smoothed stochastic applies two stages of exponential smoothing separately to the numerator (close minus lowest low) and the denominator (the high-low range) before taking their ratio. Both trade a little extra lag for a large cut in false wiggles, and both are read like a conventional stochastic.
How traders use it
- Overbought/oversold swing timing: because the double pass suppresses noise, visits to the extreme zones are less frequent and treated as more deliberate, faded in ranges or used for pullback entries in the trend's direction.
- Divergence work: the smoothed turns make peak-to-peak comparisons against price cleaner than on a fast stochastic, so bullish and bearish divergences are a common application.
- As slow confirmation behind a fast line: some setups require the double stochastic's direction to agree before acting on a fast stochastic's cross.
Related concepts · Stochastics
Concept family
Momentum & Oscillators
91 concepts mapped · 72 in the Library
Double Stochastic FAQ
Is a Double Stochastic the same as Stochastic RSI?
No. Both are indicator-of-indicator constructions, but Stochastic RSI feeds RSI values into the stochastic formula to make a deliberately fast, jumpy oscillator, while a double stochastic feeds the stochastic back through itself (or double-smooths its components) to make a deliberately smooth one. They sit at opposite ends of the noise spectrum and behave very differently at their extremes.
What settings does a Double Stochastic use?
There is no single standard. Each stochastic pass has its own lookback and each smoothing stage its own short period, and platforms differ both in defaults and in which published variant they implement, Bressert's two-pass version or Blau's double-smoothed components. The usual trade-off applies: longer values mean fewer, slower signals; shorter values mean earlier turns with more noise.
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