Stochastic Oscillator Entries with Percentage Stop and Profit Exits
Summary
This TradingView strategy uses a smoothed Stochastic Oscillator to seek long entries after an upward %K/%D crossover when %K is below 20. An open long can exit through a percentage stop loss, a percentage take profit, or an opposing stochastic crossover when %K is above 60. The script exposes oscillator lengths and smoothing settings as well as the stop and target percentages; the example defaults are a 2.5% stop and a 6% target. It is a rules-based reversal approach with defined trade exits, rather than an indicator that only marks chart signals.
The document provides source code and a usage description, but no backtest period, performance statistics, or evidence that the rules are profitable. The prose describes the entry as requiring both oscillator lines below the threshold, while the shown condition checks only %K; the same distinction applies to its description of the exit threshold. Results may depend on the traded asset, timeframe, transaction costs, and TradingView execution assumptions, none of which are evaluated here.
Key ideas
- A long entry occurs when %K crosses above %D while %K is below 20.
- A long trade exits at its configured stop, profit target, or a qualifying downward stochastic crossover.
- The example uses a 2.5% stop loss and a 6% take profit.
- No backtest results or evidence of profitability are supplied, and the prose describes stricter oscillator conditions than the code implements.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.