Slow Stochastic Crossing

The strategy is a technical analysis trading strategy that uses the Slow Stochastic Oscillator to generate buy and sell signals based on the crossing of the %K and %D lines.

In this strategy, a buy signal is generated when the %K line crosses the %D line in an upward direction. This indicates a potential change in momentum and a buy signal is generated.

Conversely, a sell signal is generated when the %K line crosses the %D line in a downward direction. This indicates a potential reversal in momentum and a sell signal is generated.

The Slow Stochastic Oscillator is a momentum indicator that measures the relative position of the current closing price to the high-low range over a specified period of time. The %K line represents the current closing price relative to the range, while the %D line is a moving average of the %K line.

By using the crossing of the %K and %D lines as signals, this strategy aims to identify potential changes in momentum and to generate buy and sell signals accordingly.

This strategy is based on crossings in Slow Stochastic Oscillator. Typically a buy is generated when a %K (black) line is crossing a %D (red) line in an upward direction. When %K is crossing %D in a downward direction it is a sell signal.

Formula

IF STO%K >= STO%D
THEN GO LONG
ELSE
IF STO%K <= STO%D
THEN GO SHORT
where STO%K is %K slow stochastic oscillator;
where STO%D is %D slow stochastic oscillator;

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