Quad Stoch v4 - George Lane Method

# Quad Stoch v4 - User Guide

## Overview

**Quad Stoch v4** uses the traditional **George Lane Stochastic** calculation method to track four different timeframe stochastics simultaneously, identifying asymmetric rotation patterns for long and short entries.

## Core Philosophy

**Longs and shorts are NOT symmetrical:**
- **Longs**: V-bottom pattern, sharp rotation up from oversold (fast stochs lead)
- **Shorts**: Either bleed down then dump OR synchronized flush (different patterns)

## George Lane Method

v4 uses the pure George Lane calculation:
1. **%K** = Raw stochastic: `100 × (Close - LL) / (HH - LL)`
2. **%K Smoothing** = SMA of raw %K (default: 1 = no smoothing)
3. **%D** = SMA of smoothed %K (classic: 3-period)

**Default Display**: %D lines only (traditional slow stochastic)

## Default Stochastic Settings

| Stoch | %K Length | %K Smooth | %D Smooth | Color | Description |
|-------|-----------|-----------|-----------|-------|-------------|
| **1** | 9 | 1 | 3 | **RED** | Fastest - leads rotations |
| **2** | 14 | 1 | 3 | **GREEN** | Fast |
| **3** | 40 | 1 | 4 | **CYAN** | Slow |
| **4** | 60 | 1 | 10 | **WHITE** | Slowest - confirms trend |

*Colors match DTR Dashboard for easy reference*

## Rotation Signals

### 🟢 Bullish Rotation (Long Entry)
**Pattern**: V-bottom rotation

**Conditions**:
- Fast avg (D9 + D14) / 2 is **oversold** (< 25)
- Fast avg **turning up sharply** (slope > 3.0)
- Slow avg (D40 + D60) / 2 still **low** (< 50)
- Slow avg **flat or not turning** (slope < 1.0)

**What to look for**: Fast stochs bottoming and rocketing up while slow stochs haven't turned yet

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### 🔴 Bearish Rotation (Short Entry)
**Two asymmetric patterns**:

#### **Pattern A: "Bleed Then Dump"**
- D60 was recently **overbought** (> 80 in last 10 bars)
- D60 just **broke below 75**
- Fast avg already **falling** (slope < -1.0)
- Not too oversold (fast avg > 40)

**What to look for**: Slow stoch rolling over from overbought while fast already bleeding

#### **Pattern B: "Synchronized Flush"**
- All 4 stochs **below 75**
- Both fast AND slow **dropping sharply** (< -2.5)
- Not too oversold (fast avg > 40)

**What to look for**: All stochs dumping together in coordinated fashion

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## Key Settings

### Display Options
- **Show %K Lines**: Off by default (turn on to see raw fast stochastic)
- **Show %D Lines**: On by default (smoothed values)
- **Show Fast Avg**: Lime line = average of D9 and D14
- **Show Slow Avg**: Yellow line = average of D40 and D60

### Signal Filters
- **RTH Only Signals**: Arrows only during 9:30-16:00 ET (default: ON)
- **Spread Filter**: Optional - requires minimum spread between stochs
- **Min Spread**: Default 15 (ignored unless spread filter enabled)

### Slope Calculation
- **Slope Bars**: Number of bars to calculate slope (default: 2)
- Higher = smoother slope detection, slower reaction

## Visual Indicators

| Indicator | Meaning |
|-----------|---------|
| 🟢 **Green Triangle** ↑ | New bullish rotation signal |
| 🔴 **Red Triangle** ↓ | New bearish rotation signal |
| **Green Background** | Bullish rotation active |
| **Red Background** | Bearish rotation active |
| **Lime Line** | Fast average (D9+D14)/2 |
| **Yellow Line** | Slow average (D40+D60)/2 |

## Info Label

Shows current state (top right):
- Fast avg value and state (oversold/neutral/overbought)
- Slow avg value and state
- Fast slope (direction and magnitude)
- Slow slope
- D60 value
- Active pattern (if any)

## Alerts Available

1. **Bullish Rotation** - New bullish signal fired
2. **Bearish Rotation** - New bearish signal fired
3. **Bearish Pattern A** - Bleed then dump detected
4. **Bearish Pattern B** - Synchronized flush detected
5. **Bullish Rotation Active** - In bullish state (continuous)
6. **Bearish Rotation Active** - In bearish state (continuous)

## Usage Tips

### For Longs
1. Wait for fast avg to drop below 25
2. Watch for **sharp upward** slope (>3.0)
3. Confirm slow avg still lagging below 50
4. Enter on green triangle
5. Fastest stochs (red/green) should be leading

### For Shorts
1. **Pattern A**: Watch D60 (white line) roll over from 80+
2. **Pattern B**: All stochs failing together from highs
3. Confirm fast avg not already oversold (<40)
4. Enter on red triangle
5. Look for follow-through on next bar

### Risk Management
- Signals are **entry timing tools**, not standalone systems
- Use with price action, support/resistance, and market context
- Fast rotation up = higher probability longs
- Shorts need more confirmation (Pattern A or B)
- Avoid shorting when already deeply oversold

## Customization

All thresholds are adjustable:
- **Bullish Rotation** group: Oversold levels and slope requirements
- **Bearish Rotation** group: Pattern A/B parameters
- **Colors** group: Customize all line colors

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**Version**: v4 (George Lane Method)
**License**: Mozilla Public License 2.0