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# Stochastic crossover
- URL: https://www.daytraderincome.com/strategies/stochastic-crossover/
- Published: 2026-10-07T22:18:00.000Z
- Updated: 2026-10-28T05:40:30.000Z
- Description: The stochastic oscillator shows where price closed within its recent range. When the fast line (%K) crosses the slow line (%D) in the oversold or overbought zone, a swing back is often starting.
- Author: Indy Karveli
- Tags: Mean reversion strategies, #strategy, #school-mean-reversion, #level-beginner

TargetStopFast average crosses the slow oneCross on close

Example drawing, not live market data.

1Where's the level?

Stochastic (14, 3, 3) with zones at 20 and 80.

2What's the trigger?

%K crosses above %D while %D is below 20 (or below %D while %D is above 80), on a closed candle.

3Where is it wrong?

Beyond the extreme of the last 5 closed candles.

4Where does it end?

2 times the risk.

Markets

Forex, Futures, Stocks, Crypto

Timeframes

5m to 4h

Sessions

Ranging markets

Also called

Stoch cross, %K %D cross

## What it means

The stochastic oscillator shows where price closed within its recent range. When the fast line (%K) crosses the slow line (%D) in the oversold or overbought zone, a swing back is often starting.

## How it is confirmed without repainting

Both lines are smoothed from closed candles only.

## When it fails

Trending markets, where the oscillator stays pinned at one extreme.