Osi Cycle-Adaptive Slow Stochastics
This indicator is based on the calculation for Slow 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 Slow Stochastics.
Typical Usage Scenarios
This indicator is used in the same manner as the Slow 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 Slow Stochastics is used, whether as an overbought/oversold oscillator, or as a divergence trading tool.
As is well-known, the Slow Stochastics is just a smoothed version of the Fast Stochastics, so it tends to be a little less noisy. When adjusted to a factor of the dominant wave period, it still shows that smoothing effect, but the delayed effect is minimized.
The Osi Cycle-Adaptive Slow Stochastics chart to the left shows 2 divergences, marked on the chart by the sets of corresponding blue lines. Many traders use such divergences to look for reversals of the recent price action.
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 "HalfWave".