YouTube Video Transcript
[Music] hey this is David for big bits and in this video we’re gonna talk about the newest trading view indicator here from big bets and that is the stochastic weights advanced indicator this one is a private indicator which is invite-only so if you’re interested in this one when you’re watching the video and you don’t already have access just reach out to me on youtube trading view Twitter disk or any of the platforms and we’ll see about getting you access I do plan to have some other indicators and sell access to these at some point and be a vendor as trading me refers to it but for now maybe not so much but if you’re seeing this video a little bit later down the road then you’ll probably need to purchase access or something to that measure but for now let’s go ahead and talk about this one and how it differs from the free version which is the basic version and really the thing that you need to know is that there are probably 10 to 12 new features in the advanced versus the basic and the advanced covers quite quite a bit more in-depth as well not just more settings just very detailed settings as well to help you fine-tune everything the best you can now let’s go ahead and take a look at some of these settings you notice the first one I’ve updated this pretty much as soon as I release the indicator I actually came back and I gave it a configuration and by default it will use the default settings which are the ones you’re seeing down here but if you choose big bits i/o settings you’ll get the same settings that I use and you’ll be able to see the same stochastic weights advanced that I’m actually using in this video and you’ll be able to create your own as well so what I’m going to do right now is actually I’m going to go and do this yes the 1-minute chart now I had to make sure I was on the 1-minute chart here okay so let’s pull up this again and let’s show you we have several different indicators we have the stochastic the stochastic RSI the stochastic PC which is another one my indicators this one’s actually open source and free as well the stochastic V which is only available in this script period it’s not in any other script at all and I honestly think this is one of the key pieces to making the stochastic weights advanced actually work correctly because on your divergences I believe it weighs the second part of the diversions a little bit more heavier than the first part so it’ll create a higher bump in the divergence so it makes it a little bit more clear it’s actually a divergence when you’re looking at it in my opinion there’s also the RSI smooth dar si MFI and smooth MF I know those are all of the stochastic or oscillator type indicators that range from 0 to 100 that are all weighted together to form these two lines now typically if you’re using stochastic it would look like this but what we’ve done is we’ve combined the siq astok with this casick RSI and so forth you have your regular stochastic your regular stochastic RSI and your other indicator settings but what you’re gonna do is you’re gonna actually give these a weighted value and by default they’re all weighted the same but you can actually apply a heavier weight to certain indicators within the stochastic weights so if you want your stochastic to be weighted three times first of all you’d have it on the default configuration but you would just set your stochastic weight to three and this would be worth three points as opposed to any of the other ones so essentially it’s creating a weighted average of your stochastics and all these other values except that this one is weighted three times as much as any of the others that are weighted at one so that’s something you can do you don’t just have to you don’t just have to do this with one of them you can actually do this with multiple so if you wanted this stochastic to be worth three but you also wanted our aside to be worth four you could do that you can have it be worth whatever you want as far as weights are concerned it’s gonna average those together based on their weights and it’s gonna come up with the values you see on the chart my settings I have them weighted a little bit differently of course then the default I have several of them waited more than the others and I think it came out just right at least for my stop now there is also a que length here so not only in the stochastics above that are actually included in the weighted values for the que you can set their kaeleen and average the que lengths of all these together or excuse me average the K values of all these together which is what we’re doing but then you can take that weighted K value and you can smooth that as well and I actually do that by default here actually use the three and my own settings as well and then you can also set the D link with is just the Purple Line here which is the smooth average or excuse me the simple moving average of the K line as you would expect with the stochastic indicator itself now there is some important things to tell you here the oversold very oversold overbought and very oversold levels excuse me it looks like I need to update the title on this one I’ll take care of that but as you can see these are all set to the values of these lines here and because of that I can’t make these a part of the default configuration but these are the values that I use in my own configuration so that is because of a limitation in the pond script coding that won’t allow me to use an integer value as opposed to just the input so we have to use the input value here to create the lines now beyond that I have added in another RSI which allows you to work on different resolutions in the chart and when you turn this on what it’s going to do is it’s going to calculate the RSI value for whatever resolution and other things that you have and in order for this to throw any sort of over bot or any sort of oversold type of signal it’s gonna have to require that this RSI on the overbought side be above 80 or below 20 and this is to kind of filter out some of the weak signals so if you’re wanting to find something that’s overbought you might not want to get something that’s overbought on the 1-minute chart but not overbought on the 5 or 15 so you can set the RSI here on the 15-minute to require that it’s over 80 to be overbought and on the one-minute chart it’s not gonna say it’s overbought unless the 15-minute RSI is about 80 so that’s just another filter that we have here now the indicator itself searches for divergences and let me take you to the actual page of the indicator itself and scroll down here and show you I’ve already talked about a lot of this stuff but this does a very good job of showing you some of the things that we’re talking about now this is an example of the divergences that it does and I sort of took some of the code from the default divergences indicator on trading view but I had to change it around somewhat considerably to get it to work without repainting and I’ve done that by making it very strict so you don’t see a lot of divergences but they are usually pretty good and I think this one came a little too soon but at the same time the entries are only occurring on crossovers after divergences so if it picks up the divergence and the indicator continues to go up it’s not going to actually tell you to enter that divergence until after the opposite crossover occurs so hopefully that can help as well and with manual trading you would see that there was actually yet another divergence here and you could have looked up here as well so there’s that there are multiple settings for that there is the divergence look-back period which tells you how far back to look for the divergence the maximum of the divergence look-back range which means it can only go back that far and I think based on the way that the detergents code works is that really this is only gonna be 20 because there is no look forward with the right look back and the minimum can be zero now there is also the option to turn off plotting those bullish divergences or the bearish divergences and again that would be these so if you don’t want these you can just hide those and honestly these aren’t always the best signals but if you don’t want to plot them you don’t have to sit and just turn those off with that particular setting now there is what’s called a bull divergence recency and a bear divergence recency and going back to the actual divergence this just means from the point that the divergence occurs the corresponding crossover or cross under must occur within that recency period so if they’re virgins curd here and your recency is set to two it probably would not have triggered this but if you had it set to five it would have kazoo this crossover was about five candles after the divergence was detected so that’s how the divergence of recency works and we have a couple of more settings this is what I call the very quick oversold or overbought div recency and what this does it’s the same thing as the bull and bear divergence recency except this is our own calculation here for a divergence and what we’re doing is we are looking for and let me zoom into the chart here a period where the indicator goes above the very overbought or below the very oversold levels and then it closes at a much higher price within that recency period with a lower high on the actual indicator itself so you can see it spotted out a really good divergence here and if you were to short there it would have worked out well for a quick scalp and it appears that’s how most of the trades work out unless you’re pretty confident that you’re in tat the end of a trend you see this occurred midway through what appears to be a an upward trend and a lot of times you had signals like back here it was very overbought you’ll get those at the beginning of trends and it will continue to go on so it’s good to look for divergences in my opinion on this particular indicator now there is also the requirement that the D value must be within a certain range as well on the second point so let’s go back to this one so when the second part of the divergence occurs the crossover must happen above 60 for the overbought bearish divergences and it must happen below 40 for the bullish divergences and this is to kind of weed out some of the cases where it’ll get very low and then it bounced back up really really high and then of course you need to use the recency window to change when they can actually occur so looking out 40 candles from there this was in that range but if you had the recency set to 20 or so back here this would not have thrown a divergence and this would not have been a divergence because it did not meet the other requirements that are in the code behind the scenes now there are a couple of other indicators being used behind the scenes to kind of determine when a divergence of these sorts should actually be thrown it’s checking for basically some pretty volatile price action to require that there are signals being thrown so you’re probably not gonna see a whole lot unless there’s some pretty volatile action and honestly with my settings the indicators hardly ever go to very overbought let’s go back up over here you can see there was a very strong move up and it went to over BOTS twice so when it throws an over very overbought or a very oversold signal it means it was a huge move and this is a one-minute chart so I would not have recommended chasing that but that’s one of the reasons I recommend looking for these divergences because if you would have paid attention to the very first very quick overbought divergence this one would have been pretty good if you’re looking at a one minute chart now in the price tend to went sideways here on this particular one and let me hide these indicator values so they’re not in the way see the price went sideways after that so it wasn’t the greatest time but if you were trying to find the top and you were trying to trade divergences I think that one was pretty good in my opinion now I do plan on creating this into a strategy at some point so we can see where the entries and exits would be and that will be pretty interesting because there are a lot of different things going on with this particular one so let’s zoom out let’s go take a look at some of these divergences on the one-minute chart just to see what we’ve got so that one that was a divergence this was a divergence based on the settings that it has and like I said these particular divergences I don’t really care for as much unless it’s very clear that’s actual divergence this one was ok but like I said this is a 1-minute chart so it’s hard to get these correct that’s why I look for the very oversold or the very overbought divergences so let’s go back over here you can see this one very oversold and in this case a lot of times just going very overbought or going very oversold are pretty good signals themselves because of that volatility so if you’re expecting price to be within a range sideways just looking for very overbought or very oversold conditions might be good enough and even if you were to look for very oversold or very overbought and then add in on a divergence to average your price up or down that might be an option to work with as well let’s go ahead and take a look at some of these five minutes values now if you’re wondering the labels up here are the multi-resolution RSI call-outs and I tend to look for these when I am using the stochastics indicator because if it does get to a high value then the RSI needs to kind of correspond so like for here it went pretty low but the RSI didn’t get very low so I knew it probably wasn’t a good signal and this these settings are very picky and this is on Bitcoin and honestly Bitcoin is known for its volatility but versus the dollar on most these exchanges it’s a lot less volatile and a lot of the other things that we look at so I actually look at aetherium and other ones as well so here you can see this probably should have been a very quick I mean a very oversold quick divergence and that one would have been a good call as well here and that’s why I also recommend kind of looking at the chart as well it isn’t entirely automated just yet to the point to where you know you get your alert and you trade on it specifically this is just another tool within our toolbox that we can actually use and if you’re curious to kind of follow along to see how these are going you can always follow me on Twitter I’ve actually got my own bot that I’ve created that’s going to be tweeting out when these alerts occur on the 5-minute chart and these are going to be posted with screenshots of the chart that we just looked at and it’s going to tell you some information about it give you some links and some other information that you might need now if you follow me on Twitter you’ll get it there but also if you go to my discord there should be a link for that in the description of the video there is a section there for bottle art so you can go back and look at those it’s probably a little bit easier to find them in discord going through the history so you can find those there but if you do the discord please mute that channel because it does tag the people who are actively in that server so you might get some notifications from it and I toyed with the idea of disabling those and we might still do that but if you’re interested in following these you can check out discord or Twitter now I believe that it for this particular video we went over pretty much everything there is with this indicator if anybody has any questions you’re more than welcome to reach outs on any of these platforms and as I said if you’re wanting to get access to this please reach out to me directly and I will see what I can do to help you out about that I’m willing to give anybody free access to it at least for a couple of days for the time being basically right after this video goes live for the first time I will allow people to get access to it for free for a while and then maybe eventually we’ll look at changing things up on how we do these things but that’s gonna be it for this video today hopefully I covered everything about the stochastic weights advanced and answered any questions you might have on how it actually works if I didn’t please leave a comment on the video or reach out on Twitter or discord or tradingview as well and I will try to answer your questions there but that’ll do it for today if you haven’t already please like the video you’ve watched it all the way through even if you don’t want the indicator hopefully you were interesting you like this type of video so you’ll leave a like but while you’re down there please also subscribe I do a lot of videos like this I do a lot of free indicators that are a completely open source as well this one just didn’t happen to be so if you’re interested in these in these types of videos with other indicators then you’ll definitely like to subscribe this channel because we do a lot of those videos but that’s it for today thanks and have a great day [Music]
YouTube Video Description
< br/> 🔻🔻🔻🔻 IMPORTANT LINKS BELOW 🔻🔻🔻🔻
Purchase Lifetime Access Here: https://bigbits.io/product/lifetime-access-to-the-stochastic-weights-advanced-indicator-bigbitsio-on-tradingview/
New Advanced Indicator on TradingView – Stochastic Weights Advanced [BigBitsIO]: In this video, we discuss a brand new indicator by BigBitsIO on TradingView. This indicator combines multiple stochastics together in a weighted fashion to help reduce noise to produce better signals. This indicator allows for more advanced utility with unequal weights, RSI confirmations, recency bias, divergences, and more. 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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