Hi,
In the, where the Stochastic Oscillator is described, it is stated that:
The crossover signal is generated as follows:
● The crossover of the “fast %K” above the “slow %D” is considered as the buy signal.
● The crossover of the “fast %K” below the “slow %D” is considered as the sell signal.
( Stochastic-Oscillator-PDFwatermark.pdf - Google Drive )
However, in the Jupyter notebook file, Technical Indicators Based Momentum Strategy,
Buy signal is calculated as stock_data['fastd'] > stock_data['slowd']) & (stock_data['fastk'] > stock_data['slowk'] for stochastic indicator.
# Buy signal
stock_data.loc[(stock_data['SAR'] < stock_data['Close']) & (stock_data['fastd'] > stock_data['slowd'])
& (stock_data['fastk'] > stock_data['slowk']), 'new_signal'] = 1
# Exit signal
stock_data.loc[(stock_data['SAR'] > stock_data['Close']) & (stock_data['fastd'] < stock_data['slowd'])
& (stock_data['fastk'] < stock_data['slowk']), 'new_signal'] = 0
Why it is different between pdf and jupyter notebook?
Also, the stocks are bought every time the condition is satisfied?
Thanks,
Boris