Stochastic measures the close's position within the high–low range over a lookback window, and outputs two lines — %K and %D — pinned to a 0–100 scale. Vant8 exposes it as a rule in the Custom Strategy Builder so composed strategies can gate on overbought / oversold levels and %K/%D crosses alongside RSI, MACD, MAs, and Bollinger Bands.
If the most recent close is near the top of the lookback's high–low envelope, %K is high. Near the bottom of the envelope, %K is low. The bounded scale means overbought / oversold levels work the same on any price. %D is a smoothed follow-up line that filters some of the noise out of %K.
Recent closes are clustering near the top of the range. A conventional overbought threshold; reversion setups look for a fall out of this band.
Neither extreme dominates. Trend strategies care about other indicators in this band; reversion setups typically wait.
Recent closes are clustering near the bottom of the range. Reversion setups look for a rise out of this band.
Vant8 ships the Full Stochastic: raw %K over the lookback window, smoothed to produce the slow %K, then smoothed again to produce %D. That's the standard formulation you'd compare against on any charting platform.
Textbook defaults out of the box. Override them per rule when you compose a Custom Strategy.
Length of the high–low envelope used to normalise the close. The standard reference.
Simple moving average applied to raw %K. Filters single-bar spikes into a slow %K that's more actionable.
Simple moving average of %K to produce the %D signal line. Cross events between %K and %D are the classic trigger.
Three families of setups the Custom Strategy Builder can express directly using the Stochastic rule.
Fires while %K (or %D) is above or below a configured band. Compose rules like "%K below 20" for oversold filters or "%K above 80" for overbought filters.
Fires when %K crosses %D from below (bullish) or above (bearish). A smoother trigger than a raw threshold cross; better in choppy conditions.
Price makes a new high or low that Stochastic doesn't confirm. Reversal signal in reversion contexts; useful continuation-doubt in trend contexts.
The shipped native strategies (RSI, MACD, MA Cross, Momentum, Mean Reversion, HODL, DCA, Grid, and the perp roster) do not read Stochastic — they use their own primary indicators. Stochastic is available specifically through the Strategy Builder for users composing rules that stack it against those other indicators.
In a real uptrend %K can sit above 80 for days without reversing. Fading every overbought reading in a trend is a slow way to lose money — pair Stochastic with a trend filter (ADX, MAs) before acting on an extreme in isolation.
A 14-bar lookback on a 1-hour chart is a very different signal from the same 14-bar lookback on a 5-minute chart. Match the period to the timeframe your Custom Strategy is trading on, not a textbook default.
Every indicator Vant8 wires into a live signal has its own page. The ones not listed here are calculated in code but not used to generate a trade decision.
Momentum oscillator on a 0–100 scale. Flags overbought and oversold conditions.
Trend-and-momentum indicator built on the spread between two EMAs.
Simple and exponential averages, plus the crossover signal between a fast and slow MA.
Volatility measured in price units, gap-inclusive. Sizes stops and grid steps.
How strong a trend is, irrespective of direction. Decides whether to follow or fade.
A moving average with standard-deviation bands. Mean Reversion uses band touches.
N-bar high and N-bar low. Used by Perp Trend Following for breakout entries and exits.
The strategies listed above are deployed from the Strategies page on your dashboard. Each one ships with sensible defaults you can tune before deployment.