CTS-Stochastic

This Pine Script code defines a custom technical indicator for the TradingView platform called "CTS-Stochastic Complete". It calculates and displays a standard stochastic oscillator and generates trading signals based on unconventional crossover logic.

Here is a breakdown of its functionality:

Core Functionality

The script calculates the Stochastic Oscillator, a momentum indicator that compares a particular closing price of an asset to a range of its prices over a certain period of time. It consists of two lines:

%K Line: The main stochastic line, calculated and then smoothed.

%D Line: A moving average of the %K line, acting as a signal line.

These two lines oscillate between 0 and 100.

Key Sections of the Code:

Indicator Declaration:

indicator("CTS-Stochastic Complete", ... overlay=false): This line declares the script as an indicator that will be displayed in a separate panel below the main price chart.

User Inputs:

You can customize the indicator's parameters from the settings menu:

Stochastic Length: The lookback period for the stochastic calculation (default is 14).

%K Smoothing: The period for smoothing the raw stochastic to create the %K line (default is 3).

%D Smoothing: The period for the moving average of the %K line to create the %D line (default is 3).

Upper Band: The threshold for the overbought level (default is 65).

Lower Band: The threshold for the oversold level (default is 35).

Plotting:

It plots the %K line in blue and the %D line in orange.

It draws two horizontal lines: a red "Upper Band" for the overbought level and a green "Lower Band" for the oversold level.

Signal Logic and Visualization:

Buy Signal: A green triangle pointing up appears at the top of the indicator window when the blue %K line crosses above the red overBought line.

Sell Signal: A red triangle pointing down appears at the bottom of the indicator window when the blue %K line crosses below the green underSold line.

Note: The signal logic is unconventional. Typically, a buy signal is generated when the stochastic crosses up from the oversold area, and a sell signal occurs when it crosses down from the overbought area. This script's logic is reversed from the traditional interpretation.

Alerts:

The script includes alertcondition functions that allow you to create server-side alerts in TradingView. You can set up notifications for when a "Buy Signal" or "Sell Signal" occurs based on the logic described above.