MTF Stochastic Signals (CM Style) - Technical Guide

Multi-timeframe Stochastic Oscillator with configurable cross signals, B/S labels, and an optional second higher-timeframe Stochastic.


Language	Indie Script v5
Platform	TakeProfit
Category	Oscillators
Type	Indicator
Author	@insurgent on TakeProfit
Original (TradingView)	CM Stochastic Multi-TimeFrame by ChrisMoody
License	MPL-2.0 (derivative work)
Live script	Open on TakeProfit
Source file	MTF Stochastic Signals (CM Style).indie5

Overview

This indicator plots a smoothed %K and %D Stochastic pair computed on a user-selected timeframe, independent of the chart’s resolution. It is designed for multi-timeframe analysis, allowing traders to view the primary Stochastic on one timeframe while optionally overlaying a second Stochastic on a separate higher timeframe for confluence. The indicator draws the %K and %D lines, upper/lower bands (default 80/20) with a fill, an optional mid line at 50, and a single priority-based background highlight.

Signal modes include a strict cross (triggers only when %K crosses %D while already inside the overbought or oversold zone) and an any cross (triggers on every %K/%D crossover regardless of position). Each mode can independently show background highlights and/or B/S text labels directly on the chart. The indicator is inspired by the CM_Stochastic_MTF by Chris Moody.

How it works

Computes the main Stochastic %K using Stoch.new on the selected timeframe’s close, low, high, then smooths it with Sma.new.
Computes the %D line by smoothing %K again with Sma.new.
Optionally computes a second Stochastic on a separate higher timeframe using the same method.
Detects strict cross signals: %K crosses %D while the previous %K was inside the oversold or overbought zone.
Detects any cross signals: every %K/%D crossover regardless of zone.
Applies a single background color with priority: strict cross > above/below band > any cross.
Places B (buy) and S (sell) text markers on bars where strict or any cross conditions are met.
Returns all plot values including bands, mid line, and markers to the chart.

Mathematical model

\[\%K = \text{SMA}\big(\text{Stoch}(\text{close}, \text{low}, \text{high}, \text{len}), \text{smooth\_k}\big)\] \[\%D = \text{SMA}(\%K, \text{smooth\_d})\] \[\text{Stoch} = \frac{\text{close} - \text{lowest}(\text{low}, \text{len})}{\text{highest}(\text{high}, \text{len}) - \text{lowest}(\text{low}, \text{len})} \times 100\]

Logic flow

flowchart TD
A["Start calc"] --> B["Compute main Stoch %K and %D"]
B --> C{"show_2nd?"}
C -- Yes --> D["Compute 2nd Stoch %K2 and %D2"]
C -- No --> E["Set out_k2, out_d2 to nan"]
D --> F["Detect cross conditions"]
E --> F
F --> G["Determine background color with priority"]
G --> H["Set marker values"]
H --> I["Return all plot values"]

Parameters

Parameter	Type	Default	Range	Description
`len`	int	14	≥ 1	Length for Main Stochastic
`smooth_k`	int	3	≥ 1	SmoothK for Main Stochastic
`smooth_d`	int	3	≥ 1	SmoothD for Main Stochastic
`up_line`	int	80	50 - 90	Upper Line Value
`low_line`	int	20	10 - 50	Lower Line Value
`show_mid_line`	bool	true		Show Mid Line?
`show_bg_above_below`	bool	false		BG When Stoch Is Above/Below Band?
`show_bg_strict`	bool	true		BG on Strict Cross (K in OB/OS zone)?
`show_labels_strict`	bool	true		Show B/S Labels on Strict Cross?
`show_bg_any`	bool	false		BG on Any K/D Cross?
`show_labels_any`	bool	false		Show B/S Labels on Any K/D Cross?
`main_tf`	time_frame	1h		Main Stoch Timeframe
`show_2nd`	bool	false		Show 2nd Stochastic?
`stoch2_tf`	time_frame	1D		2nd Stoch Timeframe
`len2`	int	14	≥ 1	2nd Stoch Length
`smooth_k2`	int	3	≥ 1	SmoothK for 2nd Stoch
`smooth_d2`	int	3	≥ 1	SmoothD for 2nd Stoch

Code walkthrough

Multi-timeframe data context

Lines 10-13 of MTF Stochastic Signals (CM Style).indie5:

@sec_context
def StochDataCtx(self):
    """Returns close, low, high from this context's timeframe for MTF stoch."""
    return self.close[0], self.low[0], self.high[0]

Defines a separate context StochDataCtx that returns close, low, high from the specified timeframe. This allows the indicator to compute the Stochastic on a different timeframe than the chart’s resolution.

Main Stochastic computation

Lines 73-76 of MTF Stochastic Signals (CM Style).indie5:

        k = Sma.new(Stoch.new(self._c1, self._l1, self._h1, len), smooth_k)
        d = Sma.new(k, smooth_d)
        out_k = k[0]
        out_d = d[0]

Computes the raw Stochastic using Stoch.new on the main timeframe data, then smooths it with Sma.new to produce %K and %D. The current bar values are accessed with [0].

Second Stochastic (optional)

Lines 79-82 of MTF Stochastic Signals (CM Style).indie5:

        k2 = Sma.new(Stoch.new(self._c2, self._l2, self._h2, len2), smooth_k2)
        d2 = Sma.new(k2, smooth_d2)
        out_k2 = k2[0] if show_2nd else nan
        out_d2 = d2[0] if show_2nd else nan

If show_2nd is enabled, computes a second Stochastic on a separate timeframe. Otherwise, sets the output to nan so nothing is plotted.

Cross signal detection

Lines 88-92 of MTF Stochastic Signals (CM Style).indie5:

        cross_up = (k[1] < d[1] and k[1] < low_line) and out_k > out_d
        cross_dn = (k[1] > d[1] and k[1] > up_line) and out_k < out_d

        cross_up_all = k[1] < d[1] and out_k > out_d
        cross_dn_all = k[1] > d[1] and out_k < out_d

Defines strict cross conditions (previous %K inside OB/OS zone) and any cross conditions (every crossover). Uses k[1] and d[1] to access previous bar values for crossover detection.

Priority-based background

Lines 95-107 of MTF Stochastic Signals (CM Style).indie5:

        bg: Optional[Color] = None
        if show_bg_strict and cross_up:
            bg = color.GREEN(0.20)
        elif show_bg_strict and cross_dn:
            bg = color.RED(0.20)
        elif show_bg_above_below and above_line:
            bg = color.RED(0.10)
        elif show_bg_above_below and below_line:
            bg = color.GREEN(0.10)
        elif show_bg_any and cross_up_all:
            bg = color.GREEN(0.20)
        elif show_bg_any and cross_dn_all:
            bg = color.RED(0.20)

Assigns a single background color based on priority: strict cross first, then above/below band, then any cross. Uses elif to ensure only one condition applies per bar.

Return tuple with all plots

Lines 117-131 of MTF Stochastic Signals (CM Style).indie5:

        return (
            out_k,                                   # K line
            out_d,                                   # D line
            out_k2,                                  # 2nd K line
            out_d2,                                  # 2nd D line
            float(up_line),                          # Upper band line
            float(low_line),                         # Lower band line
            plot.Fill(),                             # Band fill
            mid,                                     # Mid line at 50
            plot.Background(bg),                     # Combined signal BG
            plot.Marker(value=b_strict, text='B'),   # Buy label strict
            plot.Marker(value=s_strict, text='S'),   # Sell label strict
            plot.Marker(value=b_any, text='B'),      # Buy label any
            plot.Marker(value=s_any, text='S'),      # Sell label any
        )

Returns a tuple matching the @plot.* decorators order. Includes lines, fill, background, and marker objects. Markers use plot.Marker with text ‘B’ or ‘S’ and are positioned below for buy, above for sell.

Reading the chart

%K line (lime): Smoothed Stochastic %K value.
%D line (red): Smoothed Stochastic %D value.
Upper band (red, default 80): Overbought threshold.
Lower band (lime, default 20): Oversold threshold.
Band fill (gray 25% opacity): Area between upper and lower bands.
Mid line (gray, optional): Reference line at 50.
Background: Green tint for buy signals, red tint for sell signals. Priority: strict cross > above/below band > any cross.
Buy labels (‘B’): Placed below bars on buy cross signals.
Sell labels (‘S’): Placed above bars on sell cross signals.
Second Stochastic (orange/yellow): Overlaid when enabled, for higher timeframe confluence.

Implementation notes

The indicator uses sec_context and calc_on to compute the Stochastic on a different timeframe than the chart, which may cause repainting on historical bars if the higher timeframe bar is not yet closed.
Strict cross signals require the previous %K to be inside the overbought/oversold zone, reducing signal frequency but potentially increasing conviction.
Background colors are semi-transparent (0.10 or 0.20 alpha) and layered with priority; only one background color is shown per bar.
The second Stochastic is completely independent and can be on any timeframe, useful for confluence analysis.

FAQ

How do I enable the second Stochastic?

Set the ‘Show 2nd Stochastic?’ parameter to true, then configure its timeframe, length, and smoothing periods in the indicator settings.

What is the difference between ‘Strict cross’ and ‘Any cross’?

Strict cross triggers only when %K crosses %D while the previous %K was already inside the overbought or oversold zone. Any cross triggers on every %K/%D crossover regardless of zone position.

Why does the background sometimes not show even when a cross occurs?

The background uses a priority system: strict cross > above/below band > any cross. If a strict cross occurs, it overrides any cross background. Also, each background type must be enabled in the settings.

License and attribution

This Indie script is a derivative work of CM Stochastic Multi-TimeFrame by ChrisMoody on TradingView. This is a port of an open-source TradingView script whose header we could not retrieve; TradingView applies MPL-2.0 by default to open-source scripts, so that license is assumed. A modified version of MPL-2.0 code must stay under MPL-2.0, so this file is distributed under that license (the notice is appended to the end of the source file). The original author keeps the credit for the algorithm; this page is not affiliated with or endorsed by them.

Full source code

Indie Script v5, as published on TakeProfit. Copy it into the platform’s script editor or open the live script.

# indie:lang_version = 5
from math import nan
from indie import (
    indicator, MainContext, sec_context,
    param, plot, color, Color, Optional, format
)
from indie.algorithms import Sma, Stoch


@sec_context
def StochDataCtx(self):
    """Returns close, low, high from this context's timeframe for MTF stoch."""
    return self.close[0], self.low[0], self.high[0]


@indicator('MTF Stochastic Signals', format=format.PRICE)
# ─ Main stoch ──────────────────────────────────────────────────────────────────
@param.int('len', default=14, min=1, title='Length for Main Stochastic')
@param.int('smooth_k', default=3, min=1, title='SmoothK for Main Stochastic')
@param.int('smooth_d', default=3, min=1, title='SmoothD for Main Stochastic')
@param.int('up_line', default=80, min=50, max=90, title='Upper Line Value')
@param.int('low_line', default=20, min=10, max=50, title='Lower Line Value')
# ─ Visibility toggles ──────────────────────────────────────────────────────────
@param.bool('show_mid_line', default=True, title='Show Mid Line?')
@param.bool('show_bg_above_below', default=False, title='BG When Stoch Is Above/Below Band?')
@param.bool('show_bg_strict', default=True, title='BG on Strict Cross (K in OB/OS zone)?')
@param.bool('show_labels_strict', default=True, title='Show B/S Labels on Strict Cross?')
@param.bool('show_bg_any', default=False, title='BG on Any K/D Cross?')
@param.bool('show_labels_any', default=False, title='Show B/S Labels on Any K/D Cross?')
# ─ Main stoch timeframe ────────────────────────────────────────────────────────
@param.time_frame('main_tf', default='1h', title='Main Stoch Timeframe')
# ─ 2nd stoch ───────────────────────────────────────────────────────────────────
@param.bool('show_2nd', default=False, title='Show 2nd Stochastic?')
@param.time_frame('stoch2_tf', default='1D', title='2nd Stoch Timeframe')
@param.int('len2', default=14, min=1, title='2nd Stoch Length')
@param.int('smooth_k2', default=3, min=1, title='SmoothK for 2nd Stoch')
@param.int('smooth_d2', default=3, min=1, title='SmoothD for 2nd Stoch')
# ─ Main K / D lines ────────────────────────────────────────────────────────────
@plot.line('k', color=color.LIME, line_width=3, title='Stoch K')
@plot.line('d', color=color.RED, line_width=3, title='Stoch D')
# ─ 2nd stoch K / D lines ───────────────────────────────────────────────────────
@plot.line(color=color.ORANGE, line_width=3, title='2nd Stoch K')
@plot.line(color=color.YELLOW, line_width=3, title='2nd Stoch D')
# ─ Band lines + fill ───────────────────────────────────────────────────────────
@plot.line('upper', color=color.RED, line_width=3, title='Upper Line')
@plot.line('lower', color=color.LIME, line_width=3, title='Lower Line')
@plot.fill('upper', 'lower', color=color.GRAY(0.25), title='Band Fill')
# ─ Mid line ────────────────────────────────────────────────────────────────────
@plot.line(color=color.GRAY, title='Mid Line')
# ─ Single combined background ──────────────────────────────────────────────────
# Strict cross → highest priority; above/below → lowest priority; any cross → middle
@plot.background(title='Signal BG')
# ─ Buy / Sell label markers ────────────────────────────────────────────────────
@plot.marker(color=color.LIME, style=plot.marker_style.LABEL,
             position=plot.marker_position.BELOW, size=3, title='Buy Label (Strict)')
@plot.marker(color=color.RED, style=plot.marker_style.LABEL,
             position=plot.marker_position.ABOVE, size=3, title='Sell Label (Strict)')
@plot.marker(color=color.LIME, style=plot.marker_style.LABEL,
             position=plot.marker_position.BELOW, size=3, title='Buy Label (Any Cross)')
@plot.marker(color=color.RED, style=plot.marker_style.LABEL,
             position=plot.marker_position.ABOVE, size=3, title='Sell Label (Any Cross)')
class Main(MainContext):
    def __init__(self, main_tf, stoch2_tf):
        self._c1, self._l1, self._h1 = self.calc_on(StochDataCtx, time_frame=main_tf)
        self._c2, self._l2, self._h2 = self.calc_on(StochDataCtx, time_frame=stoch2_tf)

    def calc(self, len, smooth_k, smooth_d, up_line, low_line,
             show_mid_line, show_bg_above_below, show_bg_strict,
             show_labels_strict, show_bg_any, show_labels_any,
             show_2nd, len2, smooth_k2, smooth_d2):

        # ── Main stochastic ────────────────────────────────────────────────
        k = Sma.new(Stoch.new(self._c1, self._l1, self._h1, len), smooth_k)
        d = Sma.new(k, smooth_d)
        out_k = k[0]
        out_d = d[0]

        # ── 2nd stochastic ─────────────────────────────────────────────────
        k2 = Sma.new(Stoch.new(self._c2, self._l2, self._h2, len2), smooth_k2)
        d2 = Sma.new(k2, smooth_d2)
        out_k2 = k2[0] if show_2nd else nan
        out_d2 = d2[0] if show_2nd else nan

        # ── Signal conditions ──────────────────────────────────────────────
        above_line = out_k > up_line
        below_line = out_k < low_line

        cross_up = (k[1] < d[1] and k[1] < low_line) and out_k > out_d
        cross_dn = (k[1] > d[1] and k[1] > up_line) and out_k < out_d

        cross_up_all = k[1] < d[1] and out_k > out_d
        cross_dn_all = k[1] > d[1] and out_k < out_d

        # ── Combined background (one plot, priority-ordered) ───────────────
        bg: Optional[Color] = None
        if show_bg_strict and cross_up:
            bg = color.GREEN(0.20)
        elif show_bg_strict and cross_dn:
            bg = color.RED(0.20)
        elif show_bg_above_below and above_line:
            bg = color.RED(0.10)
        elif show_bg_above_below and below_line:
            bg = color.GREEN(0.10)
        elif show_bg_any and cross_up_all:
            bg = color.GREEN(0.20)
        elif show_bg_any and cross_dn_all:
            bg = color.RED(0.20)

        # ── Markers ────────────────────────────────────────────────────────
        b_strict = out_k if (show_labels_strict and cross_up) else nan
        s_strict = out_k if (show_labels_strict and cross_dn) else nan
        b_any    = out_k if (show_labels_any and cross_up_all) else nan
        s_any    = out_k if (show_labels_any and cross_dn_all) else nan

        mid = 50.0 if show_mid_line else nan

        return (
            out_k,                                   # K line
            out_d,                                   # D line
            out_k2,                                  # 2nd K line
            out_d2,                                  # 2nd D line
            float(up_line),                          # Upper band line
            float(low_line),                         # Lower band line
            plot.Fill(),                             # Band fill
            mid,                                     # Mid line at 50
            plot.Background(bg),                     # Combined signal BG
            plot.Marker(value=b_strict, text='B'),   # Buy label strict
            plot.Marker(value=s_strict, text='S'),   # Sell label strict
            plot.Marker(value=b_any, text='B'),      # Buy label any
            plot.Marker(value=s_any, text='S'),      # Sell label any
        )

# ---------------------------------------------------------------------------
# This Source Code Form is subject to the terms of the Mozilla Public
# License, v. 2.0. If a copy of the MPL was not distributed with this
# file, You can obtain one at https://mozilla.org/MPL/2.0/
# Derived from "CM Stochastic Multi-TimeFrame by ChrisMoody" (TradingView).
# ---------------------------------------------------------------------------