Strategy that combines RSI and Stochastic Oscillator for double confirmation of oversold and overbought conditions.
RSI provides a broader momentum view, while Stochastic gives faster signals near extremes. Trades flip as the oscillator crosses levels within the RSI context.
Ideal for nimble traders who favor oscillator setups. The strategy relies on an ATR stop to contain risk.
Entry Criteria:
Long: RSI < RsiOversold && StochK < StochOversold
Short: RSI > RsiOverbought && StochK > StochOverbought
[]Long/Short: Both
[]Exit Criteria:
Long: RSI > 50
Short: RSI < 50
[]Stops: Percent-based at StopLossPercent
[]Default Values:
RsiPeriod = 14
RsiOversold = 30m
RsiOverbought = 70m
StochPeriod = 14
StochK = 3
StochD = 3
StochOversold = 20m
StochOverbought = 80m
StopLossPercent = 2.0m
CandleType = TimeSpan.FromMinutes(5).TimeFrame()
[*]Filters:
Category: Mean reversion
Direction: Both
Indicators: RSI, Stochastic Oscillator
Stops: Yes
Complexity: Intermediate
Timeframe: Mid-term
Seasonality: No
Neural Networks: No
Divergence: No
Risk Level: Medium