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