The Bressert Double Stochastic Oscillator is an advanced indicator that helps short-term technical analysis-driven traders to make investment decisions. A stochastic process is essentially random where one point does not influence the next point on the graph. However, financial analysts have still determined probabilities to understand the likelihood of future price movements. They uses these to create a probability band of potential changes in a graph. The double stochastic attempts to double the accuracy of this measurement.
Find the Exponential Moving Average of your graph. The formula is: Today's Price * K + Previous SMA * (1 - K) = EMA. K = 2/(Number of Periods Examined + 1) Previous SMA = Sum of Prices from Previous Periods/Number of Previous Periods
Find the variables that will be needed to solve for the Bressert Double Stochastic. You must find the highest price during the entire period, the lowest price of the entire period and the latest price. So if your period is 10 days, search for the highest, lowest and latest values during that time span.
Use the formula for the Bressert Double Stochastic Oscillator to solve for the indicator. The formula is: EMA * 100 * (Latest Price - Lowest Price) / (Highest Price - Lowest Price).
Josh Victor started writing in 2006 as an author for various blogs across the internet. His areas of expertise include finance, business, marketing and technology. He has a Bachelor of Arts in economics from the University of Illinois at Chicago.