![New Stochastic Weight Indicator – Stochastic Weights – Basic [BigBitsIO] – Now Available Free](https://bigbits.io/wp-content/uploads/2020/07/New-Stochastic-Weight-Indicator-Stochastic-Weights-Basic-BigBitsIO-Now-Available-Free.jpg)
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YouTube Video Transcript
[Music] hey this is David for big bits in this video I want to talk about a new indicator that I’ve just published and some things we’re gonna do with this indicator in the future going ahead now I’ll go ahead and let you know I’ve already published this if you haven’t already followed me on Twitter or discord there should have been announcements made there you should see that already but we are going to be talking in the video about this if you haven’t already seen it you can go to my profile on tradingview and you can actually search for the script here I have the link for it directly up on the screen here for you if you want to see that the easiest way is just to go to my profile the link for my profile is in the description of the video so I’d appreciate it if you’d go and check that out whenever you get a chance if you’re curious about this indicator now the indicator is called stochastic weights and this is a basic version of the stochastic weights I’m working on a advanced version which is going to have some more features and I’ll explain to you what that’s going to entail in just a little bit but for now we are going to just because the psychic weights basic now if you read the name of it you probably can get an idea of what’s gonna happen we are waiting stochastics here so how are the weights actually applied well the easiest way to do this is to look at our settings I’ll go over the code a little bit later because that’s what we do on this channel would like to talk a bit about the code with behind script and stuff but if you’re just curious about the indicator itself I’ll go ahead and explain that to you first as part of our model here to show you completed work first and then explain how it actually works so this is the stochastic weights you’ll notice it looks a lot like the actual stochastic indicator and that’s because it actually is the stochastic indicator we have enabled right now the Siq astok and the stochastic RSI if you’re looking at this you see two lines and you might be thinking well is just one of those the sarcastic and the other one the stochastic RSI well no the blue line is the K value which actually is an average on the stochastic basic between the two enabled stochastics so the blue line is the average of these two so you can see if I disable one this is just the regular stochastic now and if I switch to just the stochastic RSI that is just the stochastic RSI but if I have both of them enabled they are now weighted equally because there’s two enabled and all of them will be weighted equally but 50% right now it’s just an average between the two and you can see that it changed the shape of the stochastic RSI it was rather flat you weren’t able to stochastic there’s much more of a dip there now and if you’re looking at just the stochastic you can see there’s a relatively big dip there where with stochastic RSI the dip isn’t as severe so that’s something to keep in mind as well of course you have all of your basic stochastic options here such as your K link now the built-in trading view stochastics are all slow stochastics which means they are smooth out three periods on their K value and you might be aware that the fast elastic if you’ve seen my trading view indicator series about stochastic you’ll know that the FASTA cassock is just a one period SMA or the actual k value of the stochastic and you can actually change this to the FASTA cassock just by changing the KMA length to one now of course we also have this for the stochastic RSI but I did want to point out there are a couple of indicators on here that I have created the stochastic price change which basically is a volatility measure it’s let me just show you it’s much easier to just show you so you can see when volatility increases in a particular direction the Socastee PC moves towards the volume direction that it’s going so there was a lot of volume down here or a lot of volatility down I should say so you can see that the average came up here due to the volatility upward there but once the volatility hit down really hard here in a far way it came right back down and when the volatility changed back upwards then it moved up so you can also combine that one of course with the other ones and you can see it’s smoothing things out even more and look you found a divergence here between these two and that’s actually a pretty good divergence that was a pretty good top there in my opinion but back to the settings there’s also the stochastic volume but before I get into that the stochastic PC is also a public indicator that’s available out there on my profile so while you’re looking for the stochastic weights if you want to figure out what stochastic PC is about that’s available on my profile as well now if you’re curious about the super fast smoothing length this has to do with the volatility I wouldn’t really recommend changing it because if you have it much lower the lines move very very rapidly and I don’t I don’t I didn’t really care for it here so I always set this to a one so the lines weren’t moving there set this to a four so the lines weren’t moving too quick but you can of course change all those settings that you want all right so now we’ve gotten three enabled our fourth one is the stochastic volume it’s the same thing as this stochastic price change except it deals with volume so it deals with the direction of the volume so when you get a bunch of green candles then your stochastic volume will go up you can see there’s a bunch of green candles with volume they move up now red volume pushes it down and this is just another one that you can throw into the assortment of stochastics here so now we’ve got four different stochastics enabled and it makes that divergence even more severe on that one when you have the stochastic volume enabled and you’ll notice you’re also not getting a lot of signals outside of the upper and lower bounds here and that’s part of the reason for doing this as well to eliminate a bunch of the noise from indicators that go too far above or below these bounds by combining them with the other ones then we also have the RSI so this further reduces noise as well because this is another indicator that’s range bound from 0 to 100 so I decided to toss this one in here it’s one of my favorite indicators to use and it’s one of the most popular indicators out there period that people use and since its range bound from 0 to 100 it made it super easy to weight it together with all of this other stuff and you can see now there’s it made it very difficult for this to go over the upper bounds and of course you can change your RSI settings if you wanted to and it will impact where the lines are on the chart of course because they’re all weighted so you’ve got these things to work with let’s change this back to 14 personally I don’t use my indicators on here because use them for something entirely different I’d like to use the stochastic the stochastic RSI and the RSI itself those are my favorite for this particular setting they are pretty jagged lines but I think it has a pretty good idea well I think it does a pretty good job I should say of helping you find when things go above the upper bounds and below the lower and potentially finding an entry I think it’s better than just simply using one or the other and I also think it’s better than trying to look at both of them separately so instead of having a stochastic and then it’s the Casa karzai below it I think this is a little bit easier to look at than having to look at both of them and try and decide if both of them look good I suppose you’re just combining them together to see if you know just the one indicator looks good because they’re weighted together let’s see take off the RSI and of course the values get really high but one of the things I’m gonna be working on and that is for the advanced stochastic weights and this is actually gonna be I believe my first private indicator that I’m gonna share with everyone I don’t think it’s gonna be paid although we might end up making a strategy out of it or something out of that that might end up being that way eventually but for now I will just grant anyone access to it who wants it and what we’re gonna be doing is instead of waiting all of these equally we’re gonna add another option to all the indicators and allow you to specify a weighted value so if we’re just using the CICC a stick and a Socastee RSI and we wanted the stochastic RSI to be twice as valuable as a stochastic we would weight it with a value of 2 and thus akashic would be a value of 1 so it would be worth twice as much as this stochastic so that’s gonna be the more advanced system the code isn’t really that much more advanced honestly weighting is not an issue but what I’m also looking to do is add all of the alert and the alert conditions to it and then also I’m wanting to add the divergences to it as well so we have that to look forward to going forward and if you’re curious about getting access to the indicator please comment on the YouTube video or if you don’t want to put your tradingview username in the comment of the video you can always reach out to me on training view through their messaging feature or you know on twitter or discord and send me your user ID and I’ll put you on a list and we’ll get you on there and to get that one in the future so I’ll go ahead and actually show you that one I’m not done with it of course but I do have the unequal Waits completed so where is stochastic weights advanced here we go so I have some custom settings here and they are weighted unequal you can see I gave this a cassock a 5 and the stochastic RSI 1 and then the RSI it has a weight of 1 as well so I value the stochastic very much and you can see whenever it goes above the upper bounds it produces a pretty good signal and look you don’t get that initial bump above the upper bounds here which might have thrown you off and one of the things that I really enjoyed was the divert the divergences excuse me I’m having a hard time talking in this video for some reason but you can see here is the divergence and that is gigantic divergence in price but there were only the two bumps as opposed to some other indicators where you might have this actually come lower than the original value here now you probably could have picked this up on the stochastic weights but you might not have been able to pick this up on like say the stochastic RSI because the stochastic RSI went all the way back down to zero so we’ve got that and what I’m going to do about the divergences is I’m going to try to code in the actual divergences let’s see there is an indicator for this that we’re going to use for references you can see how it plots the divergences here I’m actually going to try to have them plotted on the stochastic weights to show you when the price has moved down and you know stochastic weights have moved up and it finds the divergence hopefully it’ll plot it on here and we’ll also get some alerts on that as well so that’s the goal with stochastic weights advanced indicator I think it holds a lot more promise than the other ones but we shall see and like I mentioned if you’re interested you can always check that out so back to the basic here on to the code I just want to explain to you just a few things if you’ve been following this series you can always check out this code since it’s on my profile but all we’re doing here is we come up with our total weights and our weighted total of our stochastic so this is the total of all the stochastic values from 0 to 100 and this is just in this case the number of indicators we have enabled and we’re going through more calculating all the indicators but only if they’re enabled so that we don’t waste our resources but once we have calculated their value we add one to our weights for each indicator and then we multiply its value times the well we don’t multiply it here excuse me we add its value on to the weighted total already now we would multiply this by how much the weights are but since this is only weighted one time we don’t really need to add the multiplication in there it’s just kind of useless code in this case so this is how we’re doing it all the calculations you can see those in here this is all basic stuff other than the ones that I’ve created but you can check those out as well if you want more information on how those actually work and you can see the K value is just the weighted total divided by the weights it’s just the average between all the indicators we have enabled now on the advanced one we do multiply this by the unequal weights or whatever weight you have selected so that we can come up with the actual weighted value the voided K and then we just smooth that with a simple moving average using the input for the users there and then of course it plots it out for it so that’s all there is here it’s pretty basic I hope you have enjoyed this hope you understand what the stochastic weights are doing and that this video was useful for you at all or if you just enjoyed it or you just sit here and listen to me talk the whole time hopefully you liked the video so please go down and like the video on YouTube please leave a comment if you’re interested in the advanced version of the indicator and then also please subscribe while you’re down there that helps a whole lot and you’ll be able to come back and get updates on these stochastic weights and the stochastic weights advanced indicators and anything else that we’re gonna do I do have another indicator that I talked about on the livestream earlier that I wanted to share with everyone and that one will be a own video soon so we have something called a volatility weighted moving average that we’re going to talk about soon to so please I’ve already mentioned it please like and subscribe but other than that thanks have a great day [Music]
YouTube Video Description
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New Stochastic Weight Indicator – Stochastic Weights – Basic [BigBitsIO] – Now Available Free: In this video, we discuss a brand new indicator by BigBitsIO on TradingView. This indicator combines multiple stochastics together in an evenly weighted fashion to help reduce noise to produce better signals. With Pine Script it is very easy for even beginners to create their own indicators or strategies that have many other indicators within them. Once we have completed the script, we can see our results immediately and begin working with more functions, indicators, and strategies.
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This channel focuses on Bitcoin, Ethereum, LiteCoin, Ripple, Link, Basic Attention Token and almost all cryptocurrencies that demand attention. Please like the video if you liked the video, and subscribe if you like these types of videos. David from BigBits is an experienced Software Engineer, but no one is perfect, If you find any issues with any of the open-source, free code, or code shown in videos please comment to let us know what to fix, we listen to our viewers!
