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