Filtered Stochastic MA

🔴 Filtered Stochastic MA (FSM) 🔴

Filtered Stochastic MA (FSM) is an all‑in‑one overlay that combines an adaptive moving average, momentum analysis, and dual volatility bands to give you clear, actionable levels on any chart.

🔧 Core Components

Center MA with “Custom” Filters

• Choose from familiar SMAs, EMAs, WMAs, HMAs, RMAs … or select “Custom 1” and “Custom 2” for two proprietary smoothing methods that react gracefully in both trends and chop.
  
  
• Tune the length to match your style—from fast scalp MAs (10–20) to smoother swing MAs (50+).
  
  

Hidden Stochastic Momentum

A built‑in %K/%D oscillator runs quietly under the hood, helping the bands adapt to shifting momentum without cluttering your chart.

Dual SuperTrend‑Style Bands

• Band 1 (standard multipliers) hugs the Center MA to mark early support/resistance.
  
  
• Band 2 (double multipliers) creates a wider envelope for breakout thresholds and over‑extension signals.
  
  
• Both fade or highlight based on market direction for instant visual cues.
  

⚙️ Key Settings

Setting Description
MA Type & Length Pick your smoothing style and period.
Stochastic Length Controls momentum sensitivity.
Band Multipliers ATR & StdDev factors for Band 1 (and ×2 for Band 2).
Color Controls Customize colors and opacity for each band and the MA.
Non‑Repainting Lock signals to the previous bar for extra safety.

📈 How to Trade with FSM

1. Trend‑Following Entries

• Long when price pulls back toward Support Band 1 in an uptrend (price > Center MA and Support Band 1 is rising).
  
  
• Short when price rallies into Resistance Band 1 in a downtrend (price < Center MA and Resistance Band 1 is falling).
  

Example: On a 15 min chart of EUR/USD, set MA = 20 EMA, ATR = 1, StdDev = 1. When price dips to the green Band 1 and then closes back above it, risk a long with stop just below the band.

2. Breakout & Exhaustion Plays
A decisive close above Resistance Band 2 signals a strong breakout. Look to ride the impulse or wait for a retest of Band 2 as support.

Conversely, a break below Support Band 2 can mark trend exhaustion or a reversal opportunity.

Example: On a 1 hour BTCUSD chart with MA = 50 (Custom 1), watch for candle closes beyond the outer fuchsia band—enter on a successful retest for better risk/reward.

3. Mean‑Reversion Scalp Setups
In range or low‑volatility conditions, price swings outside Band 1 often snap back toward the Center MA. Fade these extremes on fast timeframes (1–5 min).

Example: On a 5 min Apple stock chart, when the price spikes above Resistance Band 1 and fails to hold, short toward the Center MA for a quick scalp.

4. Momentum Confirmation
Use the hidden stochastic readings (via the Data Window or your own alerts) to confirm entries:

Favor long setups when momentum is rising.

Avoid shorts when momentum remains strong above 50, even if bands are touched.

FSM brings together smoothing, momentum, and volatility in a single, clean overlay. Adjust the “Custom” filters and band widths to match your market and timeframe, and use the examples above as a starting point to build your own high‑probability setups.

Add “Filtered Stochastic MA (FSM)” to your TradingView chart today and turn noisy data into precision entry and exit zones!


Caution:

This is an educational idea, past performance or what you see on a chart may not be repeatable behavior. Trade at your own risk.

Regards!