A version of stochastic that is using adaptive (variable) periods for calculation instead of using fixed length average calculation. This version is using adaptive lookback method
Of adaptive lookback
The Adaptive lookback is truly a market-driven indicator used to determine the variable lookback period for many different indicators, instead of a traditional, fixed figure.
It is based on the frequency of market swings - the time between swing highs or swing lows. A swing high is defined as two consecutive higher highs followed by two consecutive lower highs; a swing low is defined by two consecutive lower lows followed by two consecutive higher lows. As swing points typically accompany reversals, they occur more frequently in choppier and volatile markets than in trends.
Adaptive lookback period is determined as :
This makes the variable lookback period grow in calm or trending markets, and shorten in range-bound and volatile markets. For a trend-following system you would like the opposite to prevent being whipsawed, therefore this indicator and it's usage as a period modifier is more suitable for short-term traders and counter-trend systems (so, in all systems where maximal speed of reaction and signaling is required).
The stochastic slowing (smoothing) parameter is left as the original is - ie: it is not adaptive. It was done so in order to give you more precise control of the stochastic (since if the smoothing was adaptive too, you would not be able to control the smoothness of the produced stochastic)