Double Smoothed And Amibroker Data Feed: Trading Now!

Double Smoothed Stochastic is a highly efficient technical indicator that smooths the price data to ensure precise trends and reversal signals. Combined with the Amibroker Data Feed, it can provide the best insights for the market so that noise can be reduced while increasing decision-making capabilities in entering or exiting positions.

This article looks at the mechanics and advantages of DSS integration with the Amibroker Data Feed, and actionable strategies are found for its effective implementation.

Features Of Double-Smoothed Stochastic:

1. Double Smoothing Technique: The DSS uses two levels of smoothening applied to price data that minimizes price fluctuations, giving a better, clearer indication of trends.
2. Better Accuracy of Signal: DSS reduces false signals by a large margin as compared to stochastic indicators and hence provides confidence to trade among traders.
3. Smooth Data Feeding: When combined with Amibroker Data Feed, DSS ensures real-time calculations, which keeps the traders updated with the current market trends.
4. Customizable Parameters: Traders can adjust smoothing periods according to volatility, which optimizes performance for intraday, swing, or long-term trading strategies.

Advantages Of Double-Smoothed Stochastic:

1. Reduces False Signals: DSS removes the noise generated from short-term movements, offering smoother signals and higher reliability when integrated with Amibroker Data Feed.
2. Obvious Overbought and Oversold Zones: The indicator provides zones for reversal based on thresholds set using the same criteria as used above, e.g., 20 as oversold and 80 as overbought.
3. Market-Responsive Adaptive Parameters: It can be tuned with volatility to suit adaptability for the different classes of assets
4. Real-time performance monitoring: Using Amibroker Data Feed, DSS obtains live price feeds. The former makes it a very ideal solution for fast-moving markets in the likes of intraday and scalping trades.

Applications of Double Smoothed Stochastic:

1. Identify trend reversal

• Identifies the reverse zones of a DSS, hence catching an early trend reversal
• Combined with Amibroker Data Feed that offers timely alerts.

2. Momentum Trading

• The breakout and breakdown trades in momentum due to short-term momentum change

3. Testing Support and Resistance

• A DSS confirms the price action of its significant supports and resistances against any false breakout

4. Divergence Signals

• The price action trend against that of the indicators reveals signals of potential reversal using DSS.

Step-by-step Implementation with Amibroker Data Feed:

1. Connecting Amibroker to the Data Feed

• Connect the platform to Amibroker Data Feed for real-time updates.

2. Add Double Smoothed Stochastic

• Proceed to the indicator settings and select DSS.
• Smsoo then sets the smoothing periods eg N1 = 14, N2 =3, and N3=3.

3. Analyze the Signals

• Look for buys and sells by observing several DSS values at the point where DSS crosses across the 20 and 80 levels.

4. Trend Confirmation

• Use Moving averages to confirm the trend before executing trades.

5. Backtest the Strategy

• One also backs their strategy using Ami Broker’s historical Data to tweak the parameter values.

Useful Trading Strategies:

1. Overbought and oversold strategy

• Buy when DSS rises above 20. This is the oversold line.
• Sell when DSS falls below 80. It is an overbought level.

2. Divergence Trading

• Search for the divergence of DSS with the price trends
• Take entries based on reversals that are confirmed by Amibroker Data Feed.

3. Crossover Signals

• Trade with crossover signals of other indicators like RSI and DSS to be confirmed for entry

Maximize DSS’s Performance:

• Setup Smoothing Periods- Adjust the smoothing values as per asset volatility for performance.
• Combining Multi-Timeframe Analysis- DSS signals to be combined with timeframes for verification of trades.
• Combining Volume Indicators- Increase the correctness by merging DSS with the volume-based tools to filter erroneous signals.

Why combine DSS with Amibroker Data Feed?

• Real-time Accuracy- DSS is made up to provide up-to-date correct signals through Amibroker Data Feed for quicker execution.
• Versatility Across Markets – DSS can be used for stocks, forex, and commodity trading.
• Advanced Customization – The parameters can be adjusted for specific market requirements.

Strategy Example:

• Entry Signal: Buy when the DSS indicator crosses above the 20 level and gets confirmed with rising volume.
• Exit Signal: Sell when DSS goes below 80 with declining volume backing it.
• Stop loss: Place your stops at the latest levels of recent lows. 

Conclusion:

This enables Double Smoothed Stochastic with Amibroker Data Feed to provide strong filtering noise to detect a real-time trade, with its customizable parameters ensuring that smooth updates and integrations are always available, thereby making DSS a better approach to trending detection and perfecting the art of timing the market. This bases its focus on the reliability aspect as the signals are smoothed. Visit our Facebook page, for more details!