Double Stochastic Markers

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-- SPDX-License-Identifier: MIT
-- IQOptionWiki QCS Library
-- IQOW Double Stochastic Markers v1.0.0
--
-- Price-chart companion of IQOW Double Stochastic (double-stochastic). It
-- draws no lines: only that script's HIGHER and LOWER markers, above and below
-- the candles on the price chart. A script with its own panel draws its
-- markers at the candle's price on the panel's axis, so on assets priced above
-- about 100 (for example JPY pairs) they fall outside the panel. Add IQOW
-- Double Stochastic as well to see the four Stochastic lines. Keep the
-- settings of both scripts equal.
--
-- Two Stochastic oscillators with different settings. The fast one (8, 3, 5)
-- gives the first reversal hint; the slow one (17, 3, 7) confirms it, as the
-- IQOptionWiki Double Stochastic article describes. Settings are %K period,
-- %D period and %K smoothing.
--
-- The Stochastic follows IQ Option's built-in Stochastic Oscillator: the close
-- against the highest high and the lowest low of the %K period.
--
-- HIGHER: the fast %K crossed above its %D in the oversold zone (at or below 20)
--         within the last few candles, and now the slow %K crosses above its %D
--         while also in the oversold zone.
-- LOWER:  the mirror case: fast cross down in the overbought zone (at or above
--         80), then the slow %K crosses below its %D in the overbought zone.
--
-- Markers use the previous completed candle: they appear after the next candle
-- opens and are shifted back one bar onto the candle that qualified.
-- Educational chart tool only. It does not place trades, choose an expiry,
-- predict outcomes, or guarantee results. Test on a Practice balance first.

instrument {
    name = "IQOW Double Stochastic Markers",
    short_name = "MK 2xSTOCH",
    overlay = true
}

input_group {
    "1. Fast Stochastic",
    fast_k_period = input (8, "%K period", input.integer, 2, 100),
    fast_d_period = input (3, "%D period", input.integer, 1, 50),
    fast_smooth = input (5, "%K smoothing", input.integer, 1, 50)
}

input_group {
    "2. Slow Stochastic (confirmation)",
    slow_k_period = input (17, "%K period", input.integer, 2, 100),
    slow_d_period = input (3, "%D period", input.integer, 1, 50),
    slow_smooth = input (7, "%K smoothing", input.integer, 1, 50)
}

input_group {
    "3. Zones and timing",
    oversold_level = input (20, "Oversold level", input.double, 5, 45, 1, false),
    overbought_level = input (80, "Overbought level", input.double, 55, 95, 1, false),
    fast_memory = input (5, "Fast cross memory (candles)", input.integer, 1, 20)
}

input_group {
    "Display and advice",
    signals_visible = input { default = true, type = input.plot_visibility },
    advice_enabled = input { default = false, name = "Enable platform advice", type = input.boolean }
}

input_group {
    "Colors",
    higher_color = input { default = "#25E154", type = input.color },
    lower_color = input { default = "#FF6C58", type = input.color },
    signal_text_color = input { default = "#FFFFFF", type = input.color }
}

-- Stochastic as IQ Option's built-in oscillator draws it: the close against the
-- highest high and lowest low of the %K period (not the highest and lowest
-- close), 50 when that range is zero. %K is that value smoothed with an SMA and
-- multiplied by 100; %D is an SMA of %K.
fast_low = lowest (low, fast_k_period)
fast_range = highest (high, fast_k_period) - fast_low
fast_raw = iff (fast_range > 0, (close - fast_low) / fast_range, fast_range + 0.5)
fast_k = sma (fast_raw, fast_smooth) * 100
fast_d = sma (fast_k, fast_d_period)
slow_low = lowest (low, slow_k_period)
slow_range = highest (high, slow_k_period) - slow_low
slow_raw = iff (slow_range > 0, (close - slow_low) / slow_range, slow_range + 0.5)
slow_k = sma (slow_raw, slow_smooth) * 100
slow_d = sma (slow_k, slow_d_period)

-- Current and previous values for the rule logic.
local fast_k_now = get_value (fast_k, nil)
local fast_d_now = get_value (fast_d, nil)
local fast_k_before = get_value (fast_k [1], nil)
local fast_d_before = get_value (fast_d [1], nil)
local slow_k_now = get_value (slow_k, nil)
local slow_d_now = get_value (slow_d, nil)
local slow_k_before = get_value (slow_k [1], nil)
local slow_d_before = get_value (slow_d [1], nil)

local levels_are_valid = oversold_level < 50 and overbought_level > 50

local data_is_ready =
    levels_are_valid and
    fast_k_now ~= nil and fast_d_now ~= nil and
    fast_k_before ~= nil and fast_d_before ~= nil and
    slow_k_now ~= nil and slow_d_now ~= nil and
    slow_k_before ~= nil and slow_d_before ~= nil

-- Fast Stochastic cross inside its extreme zone (first hint).
fast_cross_up = conditional (
    data_is_ready and
    fast_k_before <= fast_d_before and fast_k_now > fast_d_now and
    fast_k_now <= oversold_level
)

fast_cross_down = conditional (
    data_is_ready and
    fast_k_before >= fast_d_before and fast_k_now < fast_d_now and
    fast_k_now >= overbought_level
)

-- Did the fast cross happen on this candle or within the memory window?
local function seen_recently (event, bars)
    if get_value (event, false) then
        return true
    end
    for back = 1, bars - 1 do
        if get_value (event [back], false) then
            return true
        end
    end
    return false
end

local fast_up_recent = seen_recently (fast_cross_up, fast_memory)
local fast_down_recent = seen_recently (fast_cross_down, fast_memory)

-- Slow Stochastic cross inside the same zone (confirmation).
local slow_cross_up =
    data_is_ready and
    slow_k_before <= slow_d_before and slow_k_now > slow_d_now and
    slow_k_now <= oversold_level

local slow_cross_down =
    data_is_ready and
    slow_k_before >= slow_d_before and slow_k_now < slow_d_now and
    slow_k_now >= overbought_level

higher_setup = conditional (slow_cross_up and fast_up_recent)
lower_setup = conditional (slow_cross_down and fast_down_recent)

-- Confirm only a new setup on the previous completed candle.
confirmed_higher = conditional (
    get_value (higher_setup [1], false) and
    not get_value (higher_setup [2], false)
)

confirmed_lower = conditional (
    get_value (lower_setup [1], false) and
    not get_value (lower_setup [2], false)
)

-- Markers on the price chart: HIGHER below the candle, LOWER above it. Offset -1
-- puts each one on the candle that completed the setup (the confirmation above
-- is evaluated when the next candle opens).
if signals_visible then
    plot_shape (
        confirmed_higher,
        "2xSTOCH HIGHER",
        shape_style.triangleup,
        shape_size.small,
        higher_color,
        shape_location.belowbar,
        -1,
        "HIGHER",
        signal_text_color
    )

    plot_shape (
        confirmed_lower,
        "2xSTOCH LOWER",
        shape_style.triangledown,
        shape_size.small,
        lower_color,
        shape_location.abovebar,
        -1,
        "LOWER",
        signal_text_color
    )
end

-- QCS advice is a platform notification state only; it does not place trades.
if advice_enabled and
    get_value (confirmed_higher, false) and
    not get_value (confirmed_lower, false) then
    advise (advice.buy)
elseif advice_enabled and
    get_value (confirmed_lower, false) and
    not get_value (confirmed_higher, false) then
    advise (advice.sell)
else
    advise (advice.neutral)
end