Stock Predictor trading strategy

Slow Stochastic Crossing

The Slow Stochastic Oscillator is a smoothed version of the fast stochastic, so it gives fewer and steadier signals. %K shows where the close lies within the recent high–low range and %D is a moving average of %K.

Strategy group

Stochastic oscillator strategies

Based on

Slow Stochastic %K and %D

Typical parameters

%K = 5 days, %D = 5 days

This strategy buys when %K crosses above %D and sells when %K crosses below %D.

Trading signals

• Buy when %K crosses above %D.
• Sell when %K crosses below %D.

Strategy rules

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

Where STO%K and STO%D are the %K and %D lines of the slow stochastic oscillator.

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