
Osi Cycle-Adaptive Fast Stochastics
This indicator is based on the calculation for Fast Stochastics, but the calculation period used, on each bar, is a fixed, user-selectable, factor of the period of the dominant wave as measured on that bar: quarter-wave, half-wave or full-wave.
The user may also elect to use a fixed period, in which case it is no different from the standard Fast Stochastics.
Typical Usage Scenarios
This indicator is used in the same manner as the Fast Stochastics. The real advantage is that the period of calculation is adjusted, depending on the market's dominant cycle. An internet search will show the many ways in which the Fast Stochastics is used, whether as an overbought/oversold oscillator, or as a divergence trading tool.
The Fast Stochastics tends to be pretty noisy, so quite a few traders use it as a trend indicator rather than as an overbought/oversold indicator. Such a use is demonstrated on the chart, which deliberately uses the FullWave period for calculation, so that the Plot is not so noisy. The signals are generated (shown by the arrows, which were manually drawn, and are not drawn by the Osi Cycle-Adaptive Fast Stochastics indicator), when the Plot crosses the 50% line, in the direction of the cross.
The blue lines are then used as confirmation that the trend may have ended when both the price and the indicator show a lower high.
The calculation period, and the method (in this case, "Cycle"), are indicated by the information panel at the bottom. The parameter choice is part of the chart label in the upper text; in this case "FullWave".
NB: Note that the arrows were not drawn by the indicator: they were manually drawn to indicate a usage scenario.