The Start Bots Signal category describes signals and indicators that can start a trading bot. One of the technical indicators is Stochastic Oscillator.
When creating or editing any bot, there is a Start signal builder block at the bottom of settings. You can choose individual indicators, ready-made presets, and their combinations. Conditions are grouped: AND inside a group, OR between groups. The same indicator can be configured in different ways - for Long and Short, for breakouts and bounces, for level comparisons and for crosses.
What is the Stochastic Oscillator
The Stochastic Oscillator is a momentum indicator that shows where the current closing price sits relative to the high–low range over a selected period. Values oscillate between 0 and 100.
The indicator has two lines:
- %K - the fast line, reacting to price changes more quickly;
- %D - the signal line, a smoothed version of %K; crosses between %K and %D are often used as momentum signals.
Classic levels: below 20 - oversold zone (Long potential), above 80 - overbought zone (Short potential). Stochastic works well in ranges and on bounces from extremes, but in strong trends it can stay above 80 or below 20 for a long time - so it is often combined with a trend filter.
General builder settings
- Timeframe (interval): 1m, 5m, 15m, 30m, 1h, 4h, 1d. Shorter intervals give more signals but more noise. Swing bots often use 1h–4h; scalping uses 5m–15m.
- Check mode: At candle close checks after the candle closes - fewer false triggers. Every minute checks inside the current candle - faster reaction, higher false-start risk.
- Operator: greater than, less than, crosses above, crosses below, greater or equal, and others define how the indicator value is compared to the target.
- Target value: a number (e.g. 30 for RSI), an indicator line (e.g. %D for Stochastic), or price (for Bollinger Bands).
- Condition groups: up to 3 groups with up to 5 conditions each. Example: group 1 - RSI < 30 AND price < lower band; group 2 - Stochastic < 20. The bot starts if group 1 OR group 2 is satisfied.
Ready-made presets in the builder
The Start signal builder offers four ready-made Stochastic presets. Each can be used alone or combined with other indicators in condition groups.
stoch_value_up - %K < 20 (Long)
This preset triggers when the %K line drops below 20. That indicates oversold conditions: price is in the lower part of its recent range. The bot receives a condition to start a Long trade.
It suits bounce strategies from support when you expect an upward reversal after a decline. The signal may arrive before the actual reversal - the market can remain oversold for some time.
stoch_value_down - %K > 80 (Short)
The mirror preset for Short: %K rises above 80. This is the overbought zone - price is in the upper part of the range, and a pullback is possible.
Use it on bounces from resistance or when expecting a correction after a strong rally. Like Long at 20, the signal can lead the actual reversal.
stoch - %K crosses above 20 (oversold exit)
A more conservative Long signal: %K crosses above 20. The bot starts not when entering oversold territory, but when momentum has already begun turning upward.
Fewer false entries compared to plain «%K < 20», but a later entry. To exit overbought conditions (Short), set the operator to «crosses below» and target 80.
stoch_signal_cross - %K crosses %D
A momentum signal: %K crosses above %D. The classic fast-line-over-slow-line cross indicates strengthening bullish momentum. For Short, use «crosses below».
Without a filter, crosses in the middle of the range (40–60) often produce noise. Combine with 20/80 levels or a trend filter.
Stochastic parameters: 14/3/3
By default the builder uses 14/3/3 - the standard Stochastic Oscillator setting:
- kPeriod (14) - the main calculation period. Over the last 14 candles the highest High and lowest Low are found; the current close is compared to that range. A longer period produces a smoother, slower indicator with fewer false signals but later entries.
- kSmooth (3) - smoothing of the fast %K line. Raw %K is averaged over 3 periods to remove sharp spikes. Higher smoothing makes %K smoother.
- dPeriod (3) - period of the %D signal line. %D is a moving average of smoothed %K over 3 periods. %D is the «slow» line in stoch_signal_cross crosses.
Settings 14/3/3 work well on 15m–4h timeframes. For 5m scalping, faster values such as 9/3/3 are often used.
Setup examples for different strategies
Bounce from oversold (Long)
Preset: stoch (%K crosses above 20) or stoch_value_up (%K < 20).
Timeframe: 15m or 1h.
Mode: at candle close.
Logic: look for Long after a drop when Stochastic confirms oversold or the start of a reversal.
Short from overbought
Preset: stoch_value_down (%K > 80) or custom «%K crosses below 80».
Timeframe: 15m–1h.
Mode: at candle close.
Logic: Short on pullback from resistance or after a strong rally.
%K and %D cross
Preset: stoch_signal_cross (%K crosses above %D).
Extra: add %K < 30 in the same group to take only crosses in the lower range.
Timeframe: 15m.
Logic: momentum Long on a confirmed bounce.
RSI filter
Group 1: RSI < 30 AND Stochastic stoch_value_up (%K < 20).
Timeframe: 15m for both indicators.
Logic: double oversold confirmation - both RSI and Stochastic agree. Reduces false entries in weak ranges.
EMA trend filter
Group 1: price > EMA 50 AND stoch (%K crosses above 20).
Timeframe: 1h for Stochastic, EMA 50 on the same 1h.
Logic: Long only with the trend - bounce upward in an uptrend, not catching falling knives in a downtrend.
5m scalping with 9/3/3
Preset: stoch_signal_cross.
Parameters: kPeriod 9, kSmooth 3, dPeriod 3 - reacts faster.
Timeframe: 5m.
Mode: every minute (fast reaction) or at 5m candle close (less noise).
Filter: on 15m %K > %D - scalp Long only in the direction of the higher timeframe.
1h swing
Preset: stoch (%K crosses above 20).
Parameters: standard 14/3/3.
Extra: RSI < 40 in the same group.
Timeframe: 1h.
Mode: at candle close.
Logic: fewer but higher-quality signals for medium-term positions.
Combinations with OR groups
Group 1: stoch_value_up (%K < 20) - early oversold entry.
Group 2: stoch_signal_cross + %K < 25 - momentum entry on the cross.
Logic: the bot starts if either group is satisfied. Useful when you accept different entry types on the same instrument.
Tip
For swing bots use at-candle-close mode and standard 14/3/3. Filter %K/%D crosses with 20/80 levels or a trend EMA to cut mid-range noise. In strong trends Stochastic can stay overbought or oversold for a long time - do not rely on it alone against the main move.