Stock Predictor trading strategy

Slow Stochastic Cross/Rising

This is the slow-stochastic version of the Cross/Rising strategy. Crossings in the middle of the range are ignored, which filters out many false signals.

Strategy group

Stochastic oscillator strategies

Based on

Slow Stochastic %K and %D

Typical parameters

a = 30, b = 70

It buys on an upward crossing of %D by %K only below level a and sells on a downward crossing only above level b. With the standard %K and %D settings typical levels are a = 30 and b = 70.

Trading signals

• Buy when %K crosses above %D while both lines are below a.
• Sell when %K crosses below %D while both lines are above b.

Strategy rules

IF STO%K < a AND STO%D < a AND STO%K >= STO%D
   THEN GO LONG
ELSE IF STO%K > b AND STO%D > b AND STO%K <= STO%D
   THEN GO SHORT

Where STO%K and STO%D are the slow stochastic lines and a < b.

See also: how the Slow Stochastic Oscillator indicator is calculated.