This system is best used during consolidating markets. The system will issue a buy signal whenever the Stochastics oscillator crosses upwards but only if the stock's close is below the Keltner channel. This increases the quality of signals to make sure we are only buying oversold and over extended stocks. Be cautious of downtrends where this strategy will not work.
//Keltner and Stochs
#Keltner Channel
Set KC_Top20 = KCT(20, Exponential, 1, True)
Set KCM20 = KCM(20, Exponential, 1, True)
Set KC_Bottom20 = KCB(20, Exponential, 1, True)
plotrange(kc_top20,kcm20,dodgerblue,main)
plotrange(kc_bottom20,kcm20,dodgerblue,main)
#Stochastic Oscillator
Set SOPK = SOPK(14, 3, 3, SIMPLE)
Set SOPD = SOPD(14, 3, 3, SIMPLE)
Plot(SOPK, Line,red, SOP)
Plot(SOPD, Line,green, SOP)
plot(20,line,white,sop)
plot(80,line,white,sop)
set buy = crossover(sopk,sopd) and close < kc_bottom20
set sell = crossover(sopd,sopk) and sopk > 20
plotbuysell(buy,sell,green,red,main)
signals(buy,sell)
