Stochastic TrendDetect — part of the DS Essentials package — is a conventional stochastics indicator that has been integrated with a trend/momentum detection algorithm designed to keep you on the right side of a trade. It will run on any bar interval/custom period available in Technician.

Initiating trades based on stochastic crossovers and/or excursions into overbought or oversold territory is a popular strategy on all timeframes. When a security is exhibiting cyclical behavior it can be very profitable. However when a trend emerges the strategy is inherently unreliable. The trend detection component of Stochastic TrendDetect (implemented as green and red bands above/below the stochastic plot) can help you stay out of trouble. When increasing bullish momentum is detected, a green band will begin drawing in the overbought region of the stochastic indicating that trades to the downside might not be advisable. When increasing bearish momentum is detected, a red band will begin drawing in the oversold region of the stochastic indicating that trades to the upside might not be advisable. In addition to the standard stochastics, the indicator provides user-defined upper and lower reference levels.

The full Stochastic TrendDetect user guide can be found on the Divergence Software website here: http://www.sr-analyst.com/ChartIQHelp/index.html

It should not be assumed that past performance is any guarantee of future results. Results obtained from the use of the DS Essentials Indicator Collection for ChartIQ indicators or any information provided in this User Guide are not guaranteed to be profitable. It should be understood that investing or speculating in the financial markets involves risk and may result in either a partial or total loss of one’s investment capital. The information presented in this User Guide is believed to be reliable, but cannot be guaranteed as to its accuracy or completeness.

Divergence Software, Inc. and/or its principals and employees will accept no liability whatsoever for any loss arising from any use of the DS Essentials Indicator Collection for ChartIQ indicators, or the information contained in this User Guide. Neither Divergence Software, Inc. nor ChartIQ offer trading advice of any kind and we are solely involved in the business of financial software development and education.

Reproduction, duplication, or redistribution of the indicators or any material in this User Guide, in any form, without prior written permission from Divergence Software, Inc. is strictly prohibited.

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