Stochcrossover

This strategy uses the Stochastic indicator, enter a trade when the Kline is above the Dline, and exit a trade when the Kline is below the Dline.

The stochastic oscillator uses a quite complex mathematical formula to calculate simple moving averages.

%K = 100(C – L14)/(H14 – L14) L14 = the low of the 14 previous trading sessions Where: C = the most recent closing price H14 = the highest price traded during the same 14-day period %K= the current market rate for the currency pair %D = 3-period moving average of %K

This step is similar to the previous rule, but this time we apply the rules on the 15-minute time frame: wait for the Stochastic indicator to hit the 20 level and the %Kline (blue line) is crossing above the %D line (orange line).