signals / Stoch %K/%D cross (overbought)

Stoch %K/%D cross (overbought) is a short-side study. Fires when Stochastic %K crosses below %D while in the overbought zone (above 80).

FAQ

What is Stoch %K/%D cross (overbought)?

Stoch %K/%D cross (overbought) is a short-side study. Fires when Stochastic %K crosses below %D while in the overbought zone (above 80).

Which names are firing it?

Among mega-caps in the last 5 daily bars: COST, AMZN, AVGO, TSLA, NVDA, MSFT, AMD.

What is the sample?

Hit rates use the same rank engine as /t/spy on a fixed sample (SPY, SPX, QQQ, IWM, AAPL, MSFT, NVDA, TSLA). 8 of those names have a measurable history for this rule. Windows are 5 days, 1 month and 3 months on daily bars. Last bar in sample: 2026-10-12. Method: /methodology. Caveats: /help.

What does Stoch %K/%D cross (overbought) measure?

Fires when Stochastic %K crosses below %D and %K is in the overbought zone on this bar or the prior bar (above 80). Underlying math: see How it works on this page. Catalog line: Fires when Stochastic %K crosses below %D while in the overbought zone (above 80).

What does a firing mean?

A firing is the daily bar where this rule’s condition becomes true (a cross or a flip). It is a study event, not a recommendation to buy or sell. Forward windows on this site are close-to-close with no costs. Study side is short-side (SHORT). A positive forward return is a decline in the close after the print (side-adjusted) — a scoring convention, not a recommendation to sell short. Method: /methodology.

Why can the sample be small?

Hit rates need enough dated prints with a completed forward window. A row with fewer than 10 firings is anecdote, not evidence — the same caveat as /help. Slow rules (especially 50/200 SMA crosses) often have single-digit counts on a two-year tape. We do not invent a hit rate when the count is missing. Names in this sample with a measurable history include AAPL · IWM · TSLA · NVDA.

How it works

Slow stochastic on daily bars: lookback 14, %K smoothed 3, %D = 3-period SMA of %K. Raw %K is 100 × (close − 14-bar low) / (14-bar high − 14-bar low). The oversold / overbought zone uses the current or prior %K (a cross still counts if %K has just left 20 / 80).

Fires when Stochastic %K crosses below %D and %K is in the overbought zone on this bar or the prior bar (above 80).

Definition comes from the rank-rule catalog and the indicator defaults in this repo. Slug stoch-kd-cross-overbought is listed on /api/meta.

How to read it

Study side is short-side (labeled SHORT on firing chips). A positive forward return on this page is a decline in the close after the print (side-adjusted). That is how the event is scored — not a recommendation to sell short. A %K/%D cross inside an extreme zone is a classic oscillator setup. Because the zone test allows the prior bar, a print can occur on the bar %K leaves 20 or 80. That is a definition detail, not extra edge. Use the count column: many stochastic crosses on a two-year tape are still a small sample once you want a 3-month window.

Scoring on this site is shared across every rule (5-day / 1-month / 3-month close-to-close windows, side-adjusted). See How it is scored here below. Names in the tracked sample with a measurable history include AAPL · IWM · TSLA · NVDA. Those figures are the same rows as the hit-rate table below — not a second ranking. Historical hit rates, not a prediction / not trade advice.

When it fails

  • Choppy ranges produce many %K/%D crosses; most are not durable turns.
  • A strong trend can print oversold or overbought crosses that fail immediately.
  • The prior-bar zone allowance means a print can occur after %K has already left 20 / 80.
  • Past ≠ future. A historical hit rate is not a prediction and not investment advice.
  • No costs modeled. Forward returns are close-to-close with no commissions, slippage or borrow.
  • Small samples. A row with fewer than 10 firings is anecdote, not evidence.
  • Overlap bias. Clustered prints can credit the same later move more than once.

Same caveats as the rest of the site: /methodology · /help.

How it is scored here

On this site every rule is scored the same way: run it over about two years of daily bars, record each firing, and measure what the name did 5 days, 1 month and 3 months later. Sell signals are measured as shorts, so a positive return is a profitable short (side-adjusted). The composite score is 0.6 × average return + 0.4 × (win rate − 50), with longer horizons weighted more. Nothing here is a forecast.

Full catalog: /signals. Method: /methodology. Slug stoch-kd-cross-overbought is stable and listed on /api/meta.

Same family: Stoch %K/%D cross (oversold)

Firing now (mega-caps, last 5 bars)

SymbolLast date Win 1moCount
COST2026-10-09Win 57.1% · n=21FIRED57.1%n=2121
AMZN2026-10-12Win 40.7% · n=27STUDY40.7%n=2727
AVGO2026-10-08Win 40.0% · n=25STUDY40.0%n=2525
TSLA2026-10-08Win 41.7% · n=24STUDY41.7%n=2424
NVDA2026-10-07Win 36.7% · n=30STUDY36.7%n=3030
MSFT2026-10-08Win 29.6% · n=27STUDY29.6%n=2727
AMD2026-10-08Win 33.3% · n=24STUDY33.3%n=2424

Hit rates on tracked names

Same rank engine as /t/spy, /t/nvda, and /t/spx, restricted to this rule.

Symbol Win 5d Win 1mo Win 3mo Count Last bar
AAPL42.9%53.1%n=3234.5%322026-10-12
TSLA44.0%41.7%n=2454.5%242026-10-12
IWM50.0%44.1%n=3428.1%342026-10-12
MSFT37.0%29.6%n=2739.1%272026-10-12
NVDA50.0%36.7%n=3030.8%302026-10-12
SPX57.9%35.1%n=3721.2%372026-10-12
QQQ41.0%31.6%n=3827.0%382026-10-12
SPY55.6%25.7%n=3521.9%352026-10-12

Honest caveats

  • Past ≠ future. Everything here is a historical measurement on daily bars, not a prediction and not investment advice.
  • No costs modeled. Forward returns are close-to-close with no commissions, slippage or borrow.
  • Overlap bias. Signals that fire in clusters get credit for the same move more than once.
  • Small samples. A row with fewer than 10 firings is anecdote, not evidence.

Full method: help manual. Interactive chart: terminal.