Momentum · 200-800/mo
Stochastic Buy Sell Signals - Complete TradingView Guide
Stochastic buy sell signals for TradingView. Overbought, oversold, and cross signals with Pine Script code. K/D settings for stocks, crypto, and futures.
Stochastic Signal Interpretation
Quick-reference guide to 8 signal types you will see on the chart.
| Signal Type | Indicator Condition | Market Meaning | Reliability |
|---|---|---|---|
| Bullish Cross (%K above %D) → Buy | %K line crosses above %D line in oversold territory (<20) | Momentum is shifting upward from a low zone. Best when the cross happens below 20, which adds oversold confirmation. Less reliable near the 50 midline. | 4/5 |
| Bearish Cross (%K below %D) → Sell | %K line crosses below %D line in overbought territory (>80) | Momentum is turning down from an extended zone. Most effective when price made a higher high but the stochastic peak was lower, indicating weakening buyers. | 4/5 |
| Overbought (>80) → Caution / Potential Sell | %K or %D rises above 80 and stays there | Price has pushed to the upper end of the recent range. In strong uptrends the stochastic can stay above 80 for 10+ bars. Do not short blindly. Wait for a bearish cross below 80. | 2/5 |
| Oversold (<20) → Caution / Potential Buy | %K or %D drops below 20 and stays there | Price has reached the lower end of the recent range. In downtrends the stochastic can hug the oversold zone for extended periods. Wait for a bullish cross or bullish divergence. | 2/5 |
| Bullish Divergence → Buy | Price makes a lower low, but %K makes a higher low | Downward price momentum is weakening. Price may reverse up. This is one of my favorite setups on 4h charts for BTC. I use it with a resistance breakout for confirmation. | 4/5 |
| Bearish Divergence → Sell | Price makes a higher high, but %K makes a lower high | Upward momentum is stalling. A pullback or reversal is likely. Works well on daily timeframes in trending markets. | 4/5 |
| Hidden Bullish Divergence → Buy (Trend Continuation) | Price makes a higher low, but %K makes a lower low | The uptrend is taking a breather but the pullback is shallow in momentum terms. Trend continuation expected after the %K turns up. | 3/5 |
| Hidden Bearish Divergence → Sell (Trend Continuation) | Price makes a lower high, but %K makes a higher high | The downtrend is pausing but sellers are still in control. The next leg down typically follows after %K turns back down. | 3/5 |
Stochastic Pine Script Signal Code
Ready-to-use Pine Script code for generating buy/sell signals. Copy and paste into your TradingView Pine Editor.
Pine Script v5
//@version=5
indicator("Stochastic Buy Sell Signals", overlay=false)
kPeriod = input.int(14, "%K Length")
kSmooth = input.int(3, "%K Smoothing")
dSmooth = input.int(3, "%D Smoothing")
src = input.source(close, "Source")
ob = input.int(80, "Overbought Level")
os = input.int(20, "Oversold Level")
[stochK, stochD] = ta.stoch(src, high, low, kPeriod)
k = ta.sma(stochK, kSmooth)
d = ta.sma(stochD, dSmooth)
// Bullish Cross in Oversold
bullCross = ta.crossover(k, d) and k < os
// Bearish Cross in Overbought
bearCross = ta.crossunder(k, d) and k > ob
// Bullish Divergence
bullDiv = low[2] > low and k[2] < k and k < os
// Bearish Divergence
bearDiv = high[2] < high and k[2] > k and k > ob
// Hidden Bullish Divergence
hiddenBullDiv = low > low[2] and k < k[2]
// Hidden Bearish Divergence
hiddenBearDiv = high < high[2] and k > k[2]
plot(k, "%K", color=#2962FF, linewidth=2)
plot(d, "%D", color=#FF6D00, linewidth=1)
hline(ob, "Overbought", color=#FF5252, linestyle=hline.style_dashed)
hline(50, "Midline", color=#757575, linestyle=hline.style_dotted)
hline(os, "Oversold", color=#4CAF50, linestyle=hline.style_dashed)
plotshape(bullCross, "Buy Cross", shape.triangleup, location.bottom, color=#4CAF50, size=size.small)
plotshape(bearCross, "Sell Cross", shape.triangledown, location.top, color=#FF5252, size=size.small)
plotshape(bullDiv, "Bull Div", shape.labelup, location.bottom, color=#00BCD4, size=size.small)
plotshape(bearDiv, "Bear Div", shape.labeldown, location.top, color=#FF9800, size=size.small)
plotshape(hiddenBullDiv, "Hidden Bull Div", shape.labelup, location.bottom, color=#1DE9B6, size=size.small)
plotshape(hiddenBearDiv, "Hidden Bear Div", shape.labeldown, location.top, color=#FFAB91, size=size.small)
alertcondition(bullCross, "Stochastic Bullish Cross", "%K crossed above %D in oversold zone")
alertcondition(bearCross, "Stochastic Bearish Cross", "%K crossed below %D in overbought zone")
alertcondition(bullDiv, "Stochastic Bullish Divergence", "Bullish stochastic divergence detected")
alertcondition(bearDiv, "Stochastic Bearish Divergence", "Bearish stochastic divergence detected")Recommended Parameters for Stochastic
Parameter settings tested across different market conditions and timeframes.
| Parameter | Default | Description |
|---|---|---|
| %K Length | 14 | Number of periods used for the stochastic calculation. 14 is standard for daily charts. Shorter values like 5 or 8 increase signal frequency for 1m-5m scalping. Longer values like 21 reduce noise on weekly timeframes. |
| %K Smoothing | 3 | Moving average period applied to the raw %K line. 3 is TradingView default. Values of 1 give the raw stochastic with more cross signals. Higher values like 5 reduce sensitivity. |
| %D Smoothing | 3 | Moving average period for the %D signal line. A 3-period SMA is standard. Increasing to 5 or 7 produces fewer but potentially more reliable cross signals at the cost of later entries. |
| Overbought Level | 80 | Upper threshold. Tighten to 85 or 90 in strong uptrends to filter false sell signals. Lower to 75 in range-bound markets for earlier warnings. |
| Oversold Level | 20 | Lower threshold. Tighten to 15 or 10 in persistent downtrends. Raise to 25 for more sensitive oversold readings in choppy markets. |
Stochastic + Pineify Invite-Only: Better Together
Stochastic alone gives you one signal type. Pineify invite-only indicator combines Stochastic with RSI divergences, MACD confirmation, and Supertrend filters in one overlay. Fewer charts, clearer signals.
Instead of switching between 8 different signals on separate charts, you get a single multi-confirmation setup.
See the Invite-Only IndicatorRelated Resources
FAQ
Stochastic Signals FAQ
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