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The DSS Bressert trading indicator is an algorithm based on a modification of the standard Forex Stochastic Oscillator indicator, to the calculations of which double smoothing was applied. The indicator can be used in trading for several purposes, for example, to determine the current trend, its strength, to find the optimal moment for entering the market, as well as determining whether the market is in the overbought or oversold zone. It is presented in the lower window of the price chart in the form of two lines that intersect each other and move within the signal levels of the indicator. Taking into account the values of these lines, the current trend is first determined, and in turn, then the trade.
The DSS Bressert indicator can be applied to any currency pairs and timeframes.
Input parameters
The settings of the DSS Bressert indicator consist of only two input parameters that allow generating the optimal periodization value for the indicator and its components. Its settings also have a Colors section, with which can change the color scheme and general visualization of the indicator values. The Levels section is responsible for adding to the window indicator of signal levels.
- EMA period - exponential moving average period used by the indicator in calculations. The default value is 8.
- Stochastic period - value of the period of the Stochastic indicator. The default value is 13.
Indicator signals
The signals of the DSS Bressert indicator are directly related to changes in current market movements. That is, the indicator lines move and intersect each other in a certain order, characterizing a certain trend, already taking into account the direction of which, a certain trade can be opened. If the trend is up, a buy trade, if the trend is down - a sell trade.
Signal for Buy trades:
- The indicator lines intersect each other so that the color line with the growth value is higher than the line with the fall value. In this case, the lines move up from level 20 to level 80.
Upon receipt of such conditions, a long position may be opened on the signal candle due to the presence of an uptrend in the market. It should be closed upon receipt of reverse conditions from the indicator, namely, when its lines cross back. This may indicate a change in the current trend, which will allow considering the opening of new trades.
Signal for Sell trades:
- Both lines of the indicator move from top to bottom and intersect so that the line with the value of the fall is higher than the line with the value of the increase.
A sell trade, due to the presence of a downward trend in the market, can be opened upon receipt of these conditions on a certain candle. This trade should be closed at the next intersection of the lines. During this period, one should consider opening new trades characterized by a change in the current trend.
Conclusion
The DSS Bressert indicator is a very accurate algorithm based on a very effective indicator. Its use is very simple even for beginners, and therefore it is suitable for traders with different levels of training and trading skills. These quality of the trade can be greatly improved by using a demo account in advance.
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