Mo3ty Stochastic Reversal Signals
Mo3ty Stochastic Reversal Signals is a rule-based indicator designed to identify potential bullish and bearish reversal signals using a smoothed Stochastic K calculation, optional EMA trend filtering, candle-close confirmation, and a same-signal cooldown mechanism.
HOW IT WORKS
The indicator calculates a smoothed Stochastic K using the following default settings:
- K Length: 21
- K Smoothing: 5
- Overbought: 80
- Oversold: 20
The D line is intentionally not used in the signal logic.
BUY SIGNAL
A BUY signal requires:
- The previous Stochastic K value to be at or below the Oversold level.
- The current Stochastic K to turn upward relative to the previous value.
- Price to be above the selected EMA when the EMA filter is enabled.
- The current candle close to be higher than the previous candle close when candle confirmation is enabled.
- The candle must be confirmed/closed.
- The BUY signal must be re-armed after Stochastic exits the Oversold area.
- The same-signal cooldown must be satisfied.
SELL SIGNAL
A SELL signal requires:
- The previous Stochastic K value to be at or above the Overbought level.
- The current Stochastic K to turn downward relative to the previous value.
- Price to be below the selected EMA when the EMA filter is enabled.
- The current candle close to be lower than the previous candle close when candle confirmation is enabled.
- The candle must be confirmed/closed.
- The SELL signal must be re-armed after Stochastic exits the Overbought area.
- The same-signal cooldown must be satisfied.
EMA FILTER
The EMA filter can be enabled or disabled.
The EMA length is fully adjustable by the user and defaults to 50.
SIGNAL COOLDOWN
To reduce repeated signals of the same type, the indicator includes an adjustable same-signal cooldown.
The default setting is 5 bars.
For example, after a SELL signal, another SELL signal cannot be generated until the configured number of bars has elapsed and all other signal conditions are satisfied.
CONFIRMATION AND SIGNAL BEHAVIOR
Signals are generated only on confirmed candle closes.
The script does not use future-looking data or lookahead calculations for its signal generation.
The indicator is designed to provide rule-based signals for chart analysis. Signals should be evaluated together with market conditions, timeframe, volatility, and the user's own risk management.
ALERTS
The indicator includes separate alert conditions for:
- BUY
- SELL
Users can create TradingView alerts based on these conditions.
IMPORTANT
This indicator is an analytical tool and does not guarantee profitable results. Historical signals do not guarantee future performance. Users should perform their own analysis and apply appropriate risk management.
HOW IT WORKS
The indicator calculates a smoothed Stochastic K using the following default settings:
- K Length: 21
- K Smoothing: 5
- Overbought: 80
- Oversold: 20
The D line is intentionally not used in the signal logic.
BUY SIGNAL
A BUY signal requires:
- The previous Stochastic K value to be at or below the Oversold level.
- The current Stochastic K to turn upward relative to the previous value.
- Price to be above the selected EMA when the EMA filter is enabled.
- The current candle close to be higher than the previous candle close when candle confirmation is enabled.
- The candle must be confirmed/closed.
- The BUY signal must be re-armed after Stochastic exits the Oversold area.
- The same-signal cooldown must be satisfied.
SELL SIGNAL
A SELL signal requires:
- The previous Stochastic K value to be at or above the Overbought level.
- The current Stochastic K to turn downward relative to the previous value.
- Price to be below the selected EMA when the EMA filter is enabled.
- The current candle close to be lower than the previous candle close when candle confirmation is enabled.
- The candle must be confirmed/closed.
- The SELL signal must be re-armed after Stochastic exits the Overbought area.
- The same-signal cooldown must be satisfied.
EMA FILTER
The EMA filter can be enabled or disabled.
The EMA length is fully adjustable by the user and defaults to 50.
SIGNAL COOLDOWN
To reduce repeated signals of the same type, the indicator includes an adjustable same-signal cooldown.
The default setting is 5 bars.
For example, after a SELL signal, another SELL signal cannot be generated until the configured number of bars has elapsed and all other signal conditions are satisfied.
CONFIRMATION AND SIGNAL BEHAVIOR
Signals are generated only on confirmed candle closes.
The script does not use future-looking data or lookahead calculations for its signal generation.
The indicator is designed to provide rule-based signals for chart analysis. Signals should be evaluated together with market conditions, timeframe, volatility, and the user's own risk management.
ALERTS
The indicator includes separate alert conditions for:
- BUY
- SELL
Users can create TradingView alerts based on these conditions.
IMPORTANT
This indicator is an analytical tool and does not guarantee profitable results. Historical signals do not guarantee future performance. Users should perform their own analysis and apply appropriate risk management.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.