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NolanSaury

It's a well-known strategy that uses the Stochastic indicator in combination with other strategies is the Stochastic RSI Cross with Trend Filter Strategy. Here's how you can implement it in TradingView:

Components:
1. Stochastic RSI Indicator: This is a combination of the Stochastic and RSI indicators. It measures the level of RSI relative to its range, helping to identify overbought and oversold conditions.
2. Moving Average Trend Filter: Using a trend filter like an Exponential Moving Average (EMA) or a Simple Moving Average (SMA) can help ensure that trades are only taken in the direction of the trend. For example, if the price is above the 200-period EMA, only consider long entries.
3. Additional Confirmation with an Oscillator or Momentum Indicator: Adding another indicator like the MACD or the Average Directional Index (ADX) helps confirm the strength of the trend or momentum of the trade setup.

Strategy Logic:
1. Buy (Long Entry) Conditions:

  • The Stochastic RSI crosses above the oversold threshold (e.g., 20).
  • The price is above the chosen trend filter (e.g., 200 EMA).
  • The additional confirmation indicator (e.g., MACD line crosses above the signal line or ADX above 25) indicates a strong upward momentum.


2. Sell (Short Entry) Conditions:

  • The Stochastic RSI crosses below the overbought threshold (e.g., 80).
  • The price is below the chosen trend filter (e.g., 200 EMA).
  • The additional confirmation indicator (e.g., MACD line crosses below the signal line or ADX above 25) indicates a strong downward momentum.

3. Stop Loss and Take Profit:

  • Set a stop loss slightly below/above a recent low/high or based on ATR (Average True Range).
  • Take profit based on risk/reward ratio (e.g., 1:2 or 1:3) or dynamic take-profit levels like trailing stops.
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