Using Exponential Smoothing in Creating a Technical Indicator

Creating an Exponential Smoothing Indicator to Trade the Market in Python

Smoothing or averaging is a form of noise reduction that traders use to get a clearer picture on the trend or on extreme moves. The stochastic oscillator is known to have a signal line called the %D where a simple moving average is applied to the stochastic formula so that it makes it smoother. In this article, we will create a stochastic oscillator ent…