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2020issue C0842-45

A multi-timeframe stochastic as a panel of weekly voters

A 21-period stochastic can be computed on seven bar lengths and aligned to one weekly calendar. Buying pressure and selling pressure then become integer vote summaries, so agreement, disagreement, and quiet periods can be written as explicit rules.

  • A 21-period stochastic can be computed on daily, weekly, bimonthly, quarter-quarterly, monthly, half-quarterly, and quarterly bars and shown together on one daily chart.
  • Slower series populate forward onto weekly dates, and the daily series enters the weekly vote as a five-day high or low rather than as its raw reading. Each weekly vote summary is then an integer from 0 to 7.
  • Buying pressure is the count of timeframe readings below 0.2. Selling pressure is the count of readings above 0.8. Agreement across several timeframes is less frequent, and therefore more informative, than the same reading on one timeframe.
  • A fully specified long rule can buy at a maximum-to-date buying pressure with selling pressure at 0, or use a high-agreement setup and a later trigger. Very low readings on both pressure series are a consolidation or pause, not a directional vote.
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Current trackMomentum strategy103 readingsStochastic oscillator170 readingsRule-based entry174 readings

A familiar oscillator as a panel of voters

Editorial interpretation: treat the stochastic oscillator as a panel of independent voters rather than as a single overbought-oversold line. Agreement, disagreement, and quiet periods then become explicit states a rule can test, instead of impressions taken from a chart.

The archive workflow computes a 21-period stochastic on daily, weekly, bimonthly, quarter-quarterly, monthly, half-quarterly, and quarterly bars and shows those series together on one daily chart.

How each timeframe votes on the same week

Slower timeframe series are aligned to weekly dates by populating forward each series' latest value until that timeframe updates. Every voter can then be read on the same calendar.

The daily series is represented in the weekly vote by a five-day high or low of that oscillator rather than by its raw daily reading. That daily stabilizer replaces the raw daily oscillator with a short high or low of that series so the fastest voter does not dominate the weekly tally.

With seven timeframes, each weekly vote summary is an integer from 0 to 7.

Buying pressure, selling pressure, and long rules

Buying pressure is the count of timeframe readings below 0.2 on a given weekly date. Selling pressure is the count of readings above 0.8. Each count is a vote summary that condenses overbought or oversold states into one plottable series.

One fully specified long rule buys when buying pressure is at its maximum to date and selling pressure is 0. It exits when selling pressure is at its maximum to date and buying pressure is 0.

Two other long procedures share a setup of buying pressure at least 6 with selling pressure 0. They then differ on the trigger: selling pressure rising above 0, or buying pressure declining. Both of those setup-and-trigger procedures exit on the same condition used in the first example, selling pressure at its maximum to date with buying pressure at 0.

Halliburton closes with three vote-defined buy troughs

Daily Halliburton closes read off the published figure from early 2018 through early 2020. The three circled troughs near 18, 31, and 22 dollars are the author’s buy setups: at least six of the seven timeframe stochastics below 0.2 and none above 0.8. Each marked low was followed by an advance, which is the pattern those vote rules are meant to flag. Prices are approximate to the nearest dollar because they were taken from the raster, not from a table.
Daily Halliburton closes read off the published figure from early 2018 through early 2020. The three circled troughs near 18, 31, and 22 dollars are the author’s buy setups: at least six of the seven timeframe stochastics below 0.2 and none above 0.8. Each marked low was followed by an advance, which is the pattern those vote rules are meant to flag. Prices are approximate to the nearest dollar because they were taken from the raster, not from a table.Halliburton (HAL) · Daily · 2018-01-01T00:00:00.000Z to 2020-02-29T00:00:00.000Z

The 21-period %K votes on daily, weekly, bimonthly, quarter-quarterly, monthly, half-quarterly, and quarterly bars aligned to a weekly calendar. Oversold is below 0.2; overbought is above 0.8. The daily series uses a five-day high or low before it votes. Dates are aligned to the printed two-month ticks.

When both pressure series stay quiet

Very low readings on both pressure series are treated as a consolidation or pause rather than as a directional vote. Editorial interpretation: the all-quiet state is neither a weak long nor a weak short. It is a third, testable outcome in which the panel is not casting a directional vote.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
49 of 51 in the Momentum strategy track
202024-29 pp.Next on Momentum strategyCenterline crossovers that compare index momentumsPlace two or more same-parameter price-momentum oscillators on one pane so centerline, signal-line, and relative-strength crossings can be read together.
All readings on this track · 51 readings
  1. 1984Half-cycle differencing for momentum signals
  2. 1987Relative strength evaluation under competing optimization criteria
  3. 1988Weekly MACD as a two-clock momentum confirmation stack
  4. 1989Equal-weight zero-cross from smoothed spreads
  5. 1989Testing relative-strength-index reversal rules against trend continuation
  6. 1989Smoothed three-day futures filter for index option bounces
  7. 1989Cycle-length windows for momentum, Relative Strength Index, and stochastic construction
  8. 1991Filtered rally magnitude as a bull-regime breakout
  9. 1992Constructing true strength from double-smoothed momentum
  10. 1992Constructing a double-smoothed true strength index
  11. 1993When momentum structure and breadth break together
  12. 1993Constructing double-smoothed range and momentum oscillators
  13. 1993Constructing a two-parameter relative momentum index
  14. 1993Building a bounded momentum oscillator with RSI smoothing
  15. 1993Two-speed oscillators with divergence and trendline gates
  16. 1993Constructing a relative momentum index from the relative strength index
  17. 1994Constructing daily advance-decline breadth tools
  18. 1994Building a composite regime score from monetary climate and weekly trend
  19. 1994Averaging Relative Strength Index and the stochastic oscillator into one reversal oscillator
  20. 1995Dividend-yield regression as a hold versus momentum gate
  21. 1996Jump and hold filters for long-term Treasury yield direction
  22. 1997Constructing extendedness from a 10 percent swing filter
  23. 1997A range-expansion oscillator that can refuse its own stretch
  24. 1997RSI trend permission and Fibonacci pullback rules
  25. 1998Nested midpoint construction for a range-normalized oscillator
  26. 1999Evaluating Relative Strength Index momentum with zero-line and threshold rules
  27. 1999Treat RSI and momentum as three mechanical procedures
  28. 2000Thrust strength figure from moving-average swings
  29. 2001Constructing a non-range-bound balance of market power score
  30. 2004Cleaned breadth oscillator and new-high divergence: a swing-market case file
  31. 2004Evaluating advance-issues-momentum on a fixed-symbol-basket
  32. 2004Constructing a trend filter from two adjacent high-low windows
  33. 2006A dollar-versus-commodity extreme as a regime case
  34. 2008Zero-centered stochastic bands and bracket stops
  35. 2012Evaluating engulfing momentum across hold windows
  36. 2012Staged stops as one mechanical entry and exit procedure
  37. 2012Stacking a relative-strength-index forecast, a trend filter, and long-only momentum
  38. 2013Constructing fair-value filters from averages and momentum
  39. 2014Constructing a multi-window slope divergence entry
  40. 2015Bandedge trend filter construction with inverse crossover rules
  41. 2017Opposite rules for index price and volatility momentum
  42. 2018A three-state overlay that colors a trend only after the line clears the bar
  43. 2018Half-cycle relative-strength index with a Fisher map for cyclic reversals
  44. 2018Emotion as a rule input when momentum breaks
  45. 2018Two-bar body expansion as a momentum breakout construction
  46. 2019Pair a two-day high breakout with a volume-weighted exit on the same chart
  47. 2020Building reflex and trendflex cross and extreme entry rules
  48. 2020Construct a dual-series price momentum oscillator overlay
  49. 2020A multi-timeframe stochastic as a panel of weekly voters
  50. 2020Centerline crossovers that compare index momentums
  51. 2020Multi-timeframe stochastic voting as one mechanical rule
By fieldIndicators and filters682 readingsBy year202085 readings
All 103 readings tagged Momentum strategy
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1989Cycle-length windows for momentum, Relative Strength Index, and stochastic construction1993Constructing double-smoothed range and momentum oscillators1994Averaging Relative Strength Index and the stochastic oscillator into one reversal oscillator1998Nested midpoint construction for a range-normalized oscillator2008Zero-centered stochastic bands and bracket stops