ChartArt

Stochastic + RSI, Double Strategy (by ChartArt)

This strategy combines the classic RSI strategy to sell when the RSI increases over 70 (or to buy when it falls below 30), with the classic Stochastic Slow strategy to sell when the Stochastic oscillator exceeds the value of 80 (and to buy when this value is below 20).

This simple strategy only triggers when both the RSI and the Stochastic are together in a overbought or oversold condition. The one hour chart of the S&P 500             worked quite well recently with this double strategy.

By the way this strategy should not be confused with the 'Stochastic RSI', which measures the RSI only.

All trading involves high risk; past performance is not necessarily indicative of future results.
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//@version=2
strategy("Stochastic + RSI, Double Strategy (by ChartArt)", shorttitle="CA_-_RSI_Stoch_Strat", overlay=true)

// ChartArt's Stochastic Slow + Relative Strength Index, Double Strategy
//
// Version 1.0
// Idea by ChartArt on October 23, 2015.
//
// This strategy combines the classic RSI
// strategy to sell when the RSI increases
// over 70 (or to buy when it falls below 30),
// with the classic Stochastic Slow strategy
// to sell when the Stochastic oscillator
// exceeds the value of 80 (and to buy when
// this value is below 20).
//
// This simple strategy only triggers when
// both the RSI and the Stochastic are together
// in overbought or oversold conditions.
//
// List of my work: 
// https://www.tradingview.com/u/ChartArt/


///////////// Stochastic Slow
Stochlength = input(14, minval=1, title="lookback length of Stochastic")
StochOverBought = input(80, title="Stochastic overbought condition")
StochOverSold = input(20, title="Stochastic oversold condition")
smoothK = input(3, title="smoothing of Stochastic %K ")
smoothD = input(3, title="moving average of Stochastic %K")
k = sma(stoch(close, high, low, Stochlength), smoothK)
d = sma(k, smoothD)

 
///////////// RSI 
RSIlength = input( 14, minval=1 , title="lookback length of RSI")
RSIOverBought = input( 70  , title="RSI overbought condition")
RSIOverSold = input( 30  , title="RSI oversold condition")
RSIprice = close
vrsi = rsi(RSIprice, RSIlength)


///////////// Double strategy: RSI strategy + Stochastic strategy

if (not na(k) and not na(d))
    if (crossover(k,d) and k < StochOverSold)
        if (not na(vrsi)) and (crossover(vrsi, RSIOverSold))
            strategy.entry("LONG", strategy.long, comment="StochLE + RsiLE")
 
 
if (crossunder(k,d) and k > StochOverBought)
    if (crossunder(vrsi, RSIOverBought))
        strategy.entry("SHORT", strategy.short, comment="StochSE + RsiSE")
 
 
//plot(strategy.equity, title="equity", color=red, linewidth=2, style=areabr)
This is exactly what I've been looking for - however, I am noticing that your script is activating on the stochastics cross but not looking at RSI. Isn't it meant to give signal only when both the Stoch + RSI are either overbought or oversold together?
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Hi
Great Work simple things are really great.
So is your strategy.
Thanks
Wish you all that is best for you.
Reply
Looks good but unfinished, you just need to create an exit criteria and it works very nice.
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While i'm very new to understanding PineScript, in your explanation of the strategy it seems as if you state it will trigger a buy when both targets have been met RSI falls below 30 and STO gets a KD cross below 20. In your script it seems as if RSI has to cross back above 30 to signal a buy? Also curious as when i drop RSI 14 and STO 14-3-3 below the chart the buys and sells that appear as an overlay to the chart don't quite seem to follow the rules? What i mean by that is an example of the buys and sells that take place from 11/11/15 23:00 to 11/20/15 16:00 . There are times where STO is crossing in oversold territory but RSI>30 (not having been recently oversold) and a buy will occur. What am I missing. Any insight you can provide would be helpful, i've been fiddling with a very similar approach and am interested in what you are doing.
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I just observed that it repaints :)
Reply
Mertz74 PRO rinku.singh.111
repaints?
Reply
Vincent121 Mertz74
not sure about this but I think it means that the script changes the buy and sell orders afterwards...
can anyone confirm?
Reply
Yes, it changes afterwards
Reply
ChartArt rinku.singh.111
This is pretty weird. I see no reason why it could repaint, because it doesn't use higher time-frames.

I assume what you mean is that it "repaints" after a candle has closed. Because signals are shown as soon a new candle is printed and if the new candle closes much higher or lower than it opened then it "repaints". But that is an issue which EVERY indicator on Tradingview has.

Strategies which actually repaint, because they use future information not available at the time of trading only in hindsight (because they use close prices of higher-time frames) are especially these two strategies:

GetTrendStrategy


ANN Strategy



And this strategy also repaints, but not as badly as the previous two:

Vdub FX Sniper VX3 / Strategy
Reply
Hello ChartArt,

Great work. I really liked this strategy. I would like to know if you have any plans of adding alerts in the future.
Reply
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