Slow Stochastic Cross Rising

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 modified strategy, a buy signal is generated when the %K line crosses the %D line in an upward direction, but only if that crossing occurs below a specified level (a = 30). 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, but only if that crossing occurs above a specified level (b = 70). This indicates a potential reversal in momentum and a sell signal is generated.

By setting these specific levels, the strategy aims to filter out false signals and only generate signals when the stock is in a specific range of price momentum.

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.

This strategy is generating a buy signal on an upward crossing of %D by %K and only if that crossing occurs below a certain level a. A sell signal is generated when %D is crossed by %K in a downward direction above a certain level b. Typically a = 30 and b =70.for the standard settings of %K and %D.

Formula

IF STO%K < a AND STO%D < a
AND STO%D >= STO%K
THEN GO LONG
ELSE
IF STO%K > b AND STO%D > b
AND STO%D <= STO%K
THEN GO SHORT
where STO%K is %K slow stochastic oscillator;
where STO%D is %D slow stochastic oscillator;
and a < b; e.g. a = 20 and b = 80

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