Stochastic Oscillator
Strategy Premise
A stochastic oscillator is a momentum indicator comparing a particular closing price of a security to a range of its prices over a certain period of time. The sensitivity of the oscillator to market movements is reducible by adjusting that time period or by taking a moving average of the result. It is used to generate overbought and oversold trading signals
The stochastic oscillator consists of two lines: one reflecting the actual value of the oscillator for each session, and one reflecting its three-day simple moving average. When Stochastic Oscillator Cross Over Simple Moving Average Send Long Signal and Stochastic Oscillator Cross Under Simple Moving Average Send Short Signal.
Strategy Logic
Long Entry: When Stochastic Oscillator Cross over Simple Moving Average, Send LE.
Long Exit: Either when SL or Target is hit. If SL/TGT is not hit and Stochastic Oscillator Cross Under Simple Moving Average, send LX and SE
Short Entry: When Stochastic Oscillator Cross Under Simple Moving Average, Send SE
Short Exit: Either when SL or Target is hit. If SL/TGT is not hit and Stochastic Oscillator Cross over Simple Moving Average, SX and LE
Stochastic Oscillator Strategy Parameters for TradingView Charts
Quantity: This is used to specify the trade quantity
Custom Stop Loss in Points: Movement in chart price against the momentum which will trigger exit
Custom Target in Points: Movement in chart price against the momentum which will trigger exit
Intraday Trade Session : Entry Trade Will be Taken only on this session.
EXIT Session : Trades will be squared off in this timeframe
Stochastic Length :The default setting for the Stochastic Oscillator is 14 periods, which can be days, weeks, months or an intraday timeframe
Upper Trigger Line: The stochastic oscillator is range-bound, meaning it is always between 0 and 100. readings over 80 are considered in the overbought range
Lower Trigger Line: The stochastic oscillator is range-bound, meaning it is always between 0 and 100. readings over 80 are considered in the overbought range readings under 20 are considered oversold.
Setting Up Alert
Before setting up an alert make sure that You have selected the desired script, timeframe, strategy settings, API bridge is configured and running. Click in settings add alert and paste {{strategy.order.comment}} in message box.
Important: do not change any settings during live trading.
A stochastic oscillator is a momentum indicator comparing a particular closing price of a security to a range of its prices over a certain period of time. The sensitivity of the oscillator to market movements is reducible by adjusting that time period or by taking a moving average of the result. It is used to generate overbought and oversold trading signals
The stochastic oscillator consists of two lines: one reflecting the actual value of the oscillator for each session, and one reflecting its three-day simple moving average. When Stochastic Oscillator Cross Over Simple Moving Average Send Long Signal and Stochastic Oscillator Cross Under Simple Moving Average Send Short Signal.
Strategy Logic
Long Entry: When Stochastic Oscillator Cross over Simple Moving Average, Send LE.
Long Exit: Either when SL or Target is hit. If SL/TGT is not hit and Stochastic Oscillator Cross Under Simple Moving Average, send LX and SE
Short Entry: When Stochastic Oscillator Cross Under Simple Moving Average, Send SE
Short Exit: Either when SL or Target is hit. If SL/TGT is not hit and Stochastic Oscillator Cross over Simple Moving Average, SX and LE
Stochastic Oscillator Strategy Parameters for TradingView Charts
Quantity: This is used to specify the trade quantity
Custom Stop Loss in Points: Movement in chart price against the momentum which will trigger exit
Custom Target in Points: Movement in chart price against the momentum which will trigger exit
Intraday Trade Session : Entry Trade Will be Taken only on this session.
EXIT Session : Trades will be squared off in this timeframe
Stochastic Length :The default setting for the Stochastic Oscillator is 14 periods, which can be days, weeks, months or an intraday timeframe
Upper Trigger Line: The stochastic oscillator is range-bound, meaning it is always between 0 and 100. readings over 80 are considered in the overbought range
Lower Trigger Line: The stochastic oscillator is range-bound, meaning it is always between 0 and 100. readings over 80 are considered in the overbought range readings under 20 are considered oversold.
Setting Up Alert
Before setting up an alert make sure that You have selected the desired script, timeframe, strategy settings, API bridge is configured and running. Click in settings add alert and paste {{strategy.order.comment}} in message box.
Important: do not change any settings during live trading.