Stochastic High-Low
Joseph
0
167
Stochastic High-Low
Graphic : Any
Indicators : Stochastic (14, 3, 3)
Entry Conditions
When the Stochastic has crossed below 20, reached 10 and then returns through 20, a BUY signal is generated.
A SELL signal is generated when the signal crosses above 80, reaches 90 and returns through 80 again.
Exit Conditions
When the signal crosses the opposite line (80 to buy and 20 to sell).
Advantage
It generates fairly accurate entry / exit signals in markets with a defined trend.
Disadvantages
It requires monitoring for signals and should be used with other indicators to minimize wrong signals.
