Stochastic Failure Swing Strategy (Python)

The Stochastic Failure Swing monitors the oscillator for a lower high above 80 or a higher low below 20. When the indicator fails to reach a new extreme and then reverses, it often signals a trend shift. The strategy buys when a higher low forms below 20 and %K crosses back above %D, or sells when a lower high occurs above 80 and %K crosses under. Trades employ a small percent stop and close when the stochastic crosses back through the prior swing level.

• 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