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The ProfitTrader™ oscillators show oversold and overbought levels in a market. They are also used to determine trend, and to generate mechanical buy/sell signals.

The Bressert Double Stochastic
The Bressert DoubleStoc reduces false signals and increases the accuracy of identifying cycle bottoms and tops with high probability Mechanical Buy/Sell signals that are approximately 70% accurate.

The Bressert DoubleStoc oscillator (DBS) is the backbone of ProfitTrader™ because it tops and bottoms with approximately 70%+ of all cycle highs and lows, in all time frames, in all markets -- futures, commodities, stocks, bonds… anything that can be charted. Therefore, many trading patterns are based upon an interaction with the Double Stochastic.

The DoubleStoc indicator is used to identify tops and bottoms of the trading cycles in all time frames -- intraday, daily, weekly, and monthly --and in all markets -- stocks, indices, futures, commodities, options, Forex ...and all foreign markets.

The standard Stochastic often wiggles at tops and bottoms giving false buy/sell signals. The crossover (%D) is used in the regular stochastic to offset these wiggles by using a rise above the crossover as a buy signal, and a drop below the crossover as a sell signal.

The Bressert Double Stochastic shows market direction and overbought oversold levels that coincide with cycle tops, bottoms and trend reversals. It plots in the oscillator sub-graph of the chart.

The vertical lines below the chart are drawn through the oscillator to show the accuracy of the oscillator in identifying cycle bottoms. They are just as accurate in identifying cycle tops. (The lines are not plotted by PT.)

The oscillator turns in the DoubleStoc generate mechanical buy and sell signals in a 2-part process.

1. The 10DBS oscillator drops below the buyline at 40 and turns up. This triggers a buy setup bar indicated a blue dot, or blue square below the setup bar.

2. Prices rising above the high of the buy setup bar generate a mechanical buy signal.

When trading a market, the protective stop for the buy signal should be placed below the cycle low as this signal has 70% odds that the trading cycle bottom has already occurred by the time the buy signal completes; therefore, the odds are high that prices will continue higher into the trading cycle top.

This oscillator can also be used to determine trend when plotted in a longer-term chart. For example, a weekly oscillator will show the trading trend for a daily chart.

In the 20minute chart, the 10DBS oscillator will show the trading trend for the 5minute chart. If the oscillator is up and/or flattened at a high level, the trading trend is up; if down and/or flat at a low level, the trading trend is down for the next smaller, dominant time frame. (The 5minute chart).

Next:  ProfitTrader™ OSCILLATORS: The Bressert BLine