created : 4 years ago| |  live deployment: 0

created : 4 years ago |  live deployment: 0

Stochastic Directional Strategy - USA

Strategy description

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, utilizing a 0-100 bounded range of values.

Stochastic oscillators are sensitive to momentum rather than absolute price.

This Strategy checks the overbought / oversold status of active instruments, monitoring the Slow and Fast Oscillator crossover.
On the Positive crossover a Long position is opened and on a Negative crossover a Short position is opened.

For any side open position, the opposite signal is the Stop-Loss