Stochastic Optimized Trend Tracker (OTT)

Stochastic OTT (Stochastic Optimized Trend Tracker) is a momentum oscillator that applies the OTT trailing-stop logic to a smoothed Stochastic %K line. It plots the oscillator in its own pane together with an OTT line, and marks a Buy when %K crosses above the OTT line and a Sell when it crosses below. It is built to catch the turns of long, slow cycles rather than short-term noise.

How Stochastic OTT is calculated

1. Stochastic %K shows where the close sits inside the highest-high to lowest-low range of the last 500 bars, from 0 to 100.
2. %K is smoothed with a VAR adaptive average over 200 bars, which reacts quickly when momentum is strong and slowly when it is flat.
3. The smoothed value is shifted by +1000, so the oscillator is drawn between 1000 and 1100 and the OTT percent logic works on a stable scale.
4. The OTT trailing stop is built on that line, with the percent distance and a two-bar shift, the same way as in the Optimized Trend Tracker.
5. Two reference bands mark the overbought and oversold zones at 1080 and 1020, which equal 80 and 20 on a normal Stochastic scale.

Default settings

• %K Length: 500
• %K Smoothing: 200
• OTT Period: 2
• OTT Percent: 0.5
• Support line: hidden
• Stochastic / OTT crossing signals: off (turn them on in the settings)

How to use it

• %K above the OTT line points to rising momentum, below it to falling momentum.
• A cross near or beyond the 1020 and 1080 bands is a stronger turn signal than a cross in the middle of the range.
• Shorter %K Length and smoothing (for example 50 and 20) make the oscillator react faster and suit lower timeframes.
• Create platform alerts on the %K and OTT lines to be notified on a cross.

Limitations

The default lengths need a long history: the first several hundred bars of a chart are a warm-up period and differ from later values. Like any oscillator, it lags at sharp reversals and gives false crosses in tight ranges, so use it with trend and structure filters.

About this version

Indie port for TakeProfit of the open-source Pine Script v4 indicator published on TradingView in June 2021. The logic follows the original: Stochastic %K, VAR smoothing, OTT and the crossing signals. Values were compared with TradingView on the same candles and converge to the original after the warm-up period. Differences: the unused Source input and the shaded band between 1020 and 1080 are not included, and TradingView alertcondition() is replaced by platform alerts. Last updated: October 2026.

Credits

Original indicator: Stochastic Optimized Trend Tracker by KivancOzbilgic (created by Anıl Özekşi), TradingView. © KivancOzbilgic. Original licensed under the Mozilla Public License 2.0 (https://mozilla.org/MPL/2.0/). This is an independent Indie port of the published open-source script.

Risk warning

This indicator is a technical analysis tool for educational and informational purposes, not financial advice or a trading recommendation. Signals are calculated from past prices, can lag, repeat and fail, and do not guarantee future results. Trading financial instruments, especially with leverage, involves a high risk of loss. Test any settings on history and a demo account first, and never risk money you cannot afford to lose.