F!72 Dynamic Stoch KDJ

F!72 Dynamic Stoch KDJ

The F!72 Dynamic Stoch KDJ is an advanced momentum oscillator designed to enhance trend identification, overbought/oversold (OB/OS) zone detection, and volatility analysis. By integrating Stochastic RSI with the KDJ framework, this indicator provides a precise and adaptive approach to market dynamics across multiple timeframes.

Core Methodology: Understanding the KDJ Indicator
The KDJ indicator expands upon the traditional Stochastic Oscillator by introducing the J Line, a calculated momentum component that offers enhanced responsiveness to market fluctuations. The three primary components of this indicator are:

%K Line – Measures price momentum relative to recent highs and lows.
%D Line – A smoothed version of %K, acting as a signal confirmation tool.
J Line – A highly sensitive momentum extension, capable of detecting volatility spikes and early trend reversals before standard indicators react.
By incorporating the J Line, the indicator offers a more refined reading of price acceleration and deviation, making it particularly effective in high-volatility environments.



Adaptive Timeframe-Based Parameters
Unlike static oscillators, the F!72 Dynamic Stoch KDJ dynamically adjusts its length parameters based on the chart’s timeframe, optimizing readings for different trading styles:

• Scalping Mode (Short-term) – Applied for timeframes up to 60 minutes, prioritizing quick momentum shifts. In those TF, the standard length is 8
  

• Intraday Mode (Medium-term) – Optimized for timeframes between 1 hour and 1 day, balancing responsiveness with trend confirmation. In this cases the standard length of the indicator is 14
  

• Swing/Position Mode (Long-term) – For daily and higher timeframes, filtering out short-term noise to focus on broader market movements. Here, the standard length is 50.
  

This adaptive parameterization ensures that traders receive relevant and context-specific momentum signals, whether executing short-term scalps or analyzing macro trends.


Key Features & Usability Enhancements

1) Overbought & Oversold Zones with Extreme Levels
Standard OB/OS thresholds at 80 and 20, identifying potential trend exhaustion and reversal points.
Extended extreme zones enhance detection of high probability mean-reversion opportunities in overextended markets.



2) J Line as a Volatility Detector
The J Line excels at capturing sharp price movements, making it a powerful tool for momentum acceleration analysis.
When the J Line sharply diverges from the %K and %D lines, it signals an impending trend shift or breakout.

3) Divergence Detection for Momentum Shifts
Automatic bullish and bearish divergences indicate momentum weakening or trend continuation potential, even when price action seems stable.
Hidden divergences help confirm trend strength during retracements.


4) Smart Alerts for Key Market Events
Alerts trigger when the %K Line enters Overbought/Oversold zones, providing actionable trade setups.
Crossovers between %K and %D Lines highlight potential trend reversals or continuation signals.

5) Customizable Smoothing for Precision Trading
Users can adjust %K and %D smoothing settings, fine-tuning the indicator’s sensitivity based on market conditions and individual trading preferences.

Technical Implementation
Developed in Pine Script V6, ensuring compatibility with TradingView’s standard functions and calculations.
This guarantees accuracy and reliability, with all indicator values reflecting real-time market conditions without external data dependencies.

Disclaimer
This indicator is intended for technical analysis purposes only and does not constitute financial advice. Markets are inherently unpredictable, and past performance is not indicative of future results. Traders should perform independent analysis and apply risk management strategies when utilizing this tool.