Stochastic Hook Reversal Strategy (Python)

The Stochastic Hook Reversal watches the %K line for a hook out of overbought or oversold territory. After stretching to an extreme the oscillator often curls back, indicating momentum is waning. The system enters long when %K turns up from below twenty as price presses a new low. It sells short when the oscillator hooks down from above eighty during a final push higher. Positions use a small percent stop and close when the stochastic hooks the other way or the stop is reached.

• Entry Criteria: indicator signal

• Long/Short: Both

• Exit Criteria: stop-loss or opposite signal

• Stops: Yes, percent based

• Default Values:

• CandleType = 15 minute

• StopLoss = 2% [*]Filters:

• Category: Reversal

• Direction: Both

• Indicators: Stochastic

• Stops: Yes

• Complexity: Intermediate

• Timeframe: Intraday

• Seasonality: No

• Neural networks: No

• Divergence: No

• Risk level: Medium