bar when the %K line crosses below the %D line and both are above the Overbought level.
It generates a short trade at the Open of the following bar when the %K line
crosses above the %D line and both values are below the Oversold level.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
//////////////////////////////////////////////////////////// // Copyright by HPotter v1.0 19/05/2014 // This back testing strategy generates a long trade at the Open of the following // bar when the %K line crosses below the %D line and both are above the Overbought level. // It generates a short trade at the Open of the following bar when the %K line // crosses above the %D line and both values are below the Oversold level. //////////////////////////////////////////////////////////// study(title="Strategy Stochastic Crossover", shorttitle="Strategy Stochastic Crossover1", overlay = true ) Length = input(7, minval=1) DLength = input(3, minval=1) Oversold = input(20, minval=1) Overbought = input(70, minval=1) vFast = stoch(close, high, low, Length) vSlow = sma(vFast, DLength) pos = iff(vFast < vSlow and vFast > Overbought and vSlow > Overbought, 1, iff(vFast >= vSlow and vFast < Oversold and vSlow < Oversold, -1, nz(pos, 0))) barcolor(pos == -1 ? red: pos == 1 ? green : blue )
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