Stochastic With Region Crossovers

The Stochastic with region crossovers is simply the Stochastic, but used in a different way. As it’s described in the Stochastic video, the Stochastic gives a buy signal when it’s in oversold and a sell signal when it’s overbought. However, with this indicator this works slightly different. It has two modes: Signal on region IN (default) and Signal on region OUT. Signal on region IN: Instead of, for example, signaling a buy when the Stochastic is oversold, it will only signal a buy when the Stochastic goes from the oversold zone back into the neutral zone. That is, when the Stochastic crosses the oversold limit and becomes neutral again. In this way, a buy signal is generated once the Stochastic starts recovering positive momentum and the price has already started going up. The same logic applies to sell signals. Signal on region OUT: Instead of, for example, signaling a buy when the Stochastic is oversold, it will only signal a buy when the Stochastic goes from the neutral zone to the oversold zone. That is, when the Stochastic crosses the neutral limit and becomes oversold. In this way, a buy signal is generated once the Stochastic is falling very quickly. The same logic applies to sell signals.