Stochastic Levels on Chart

The Stochastic Levels on Chart indicator projects Stochastic oscillator levels directly onto the price chart using reverse engineering calculations. By translating oscillator values into price levels, traders can visualize the exact closing prices required for the Stochastic to reach specific overbought or oversold conditions.

Usage

The tool is primarily used to anticipate potential reversals or trend continuations by identifying key price thresholds. Traders can use these levels alongside a standard Stochastic or Stochastic RSI indicator. When price interacts with the projected extreme levels (e.g., 0 or 100) and is accompanied by a K and D line crossover on the oscillator, it often signals a potential pullback or trend reversal.

In strong trending environments, the extreme levels will dynamic shift (e.g., the 100 level moving higher in a bullish move), helping users stay aligned with the trend until a formal crossover confirmation occurs.

Details

The indicator calculates levels by reversing the standard Stochastic formula: 100 * (close - lowest(low, length)) / (highest(high, length) - lowest(low, length)).

In addition to the price levels, the script includes a multi-timeframe table that displays RSI, K, and D values for the current and higher timeframes. This allows for a comprehensive view of momentum across different horizons without switching charts.

Settings

Table Settings

• Show Table: Toggles the visibility of the multi-timeframe dashboard.
• Table position: Determines where the dashboard is anchored on the chart.
• Table Text Size: Adjusts the size of the text within the dashboard.
• Rising/Falling color: Customizes the colors used for bullish and bearish momentum states in the table.
• RSI Source/Length: Configures the parameters for the RSI calculations used in the table.
• K/D Smoothing & Length: Configures the Stochastic parameters for the table data.

Stoch Pivots Points Settings

• Show Stochastic Cross signals: Enables visual markers for oscillator crossovers.
• Line/Labels Distance: Adjusts the horizontal offset for the projected lines and their associated labels.
• Hide Labels/Lines: Individually toggles the visibility of the projected price components.
• Extreme OB/OS & Overbought/Oversold: Sets the specific Stochastic values (e.g., 100, 80, 50, 20, 0) to be reverse-engineered into price levels.
• Line Style: Selects the visual style (solid, dotted, dashed, etc.) for the projected levels.
• Color Settings: Individual color pickers for the extreme, overbought, neutral, and oversold price lines.

FAQ

How do I interpret the projected price lines?

The lines represent the price at which the Stochastic oscillator would reach the value defined in the settings (e.g., 80 for overbought). If the current price is above the "Overbought" line, the Stochastic oscillator is currently in overbought territory.

Why do the lines move?

Because the Stochastic formula relies on the highest high and lowest low of a specific lookback period, the projected price levels will update as new price extremes are established or as old ones exit the lookback window.

How can I access Stochastic Levels on Chart?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.