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Patterns › Stochastic bullish cross vs Stochastic bearish cross

Look-alikes

Stochastic bullish cross vs Stochastic bearish cross

They look alike, so beginners mix them up. Here is what each one means, and how often each one worked on real charts.

Stochastic bullish cross

Below 20, the fast stochastic line crossed above the slow one.

The stochastic shows where the close sits inside the high-to-low range of the last 14 candles, from 0 at the bottom to 100 at the top. Our version smooths this line, called %K, over 3 candles, and draws a slower line, called %D, as the 3-candle average of %K. A bullish cross is when %K crosses above %D right after being below 20, the oversold zone. It hints that selling may be tiring, but price can stay low for a long time.

Thinking a low stochastic means price must bounce right away.

The stochastic bullish cross in full ›

Stochastic bearish cross

Above 80, the fast stochastic line crossed below the slow one.

The stochastic shows where the close sits inside the high-to-low range of the last 14 candles, from 0 to 100. Our version smooths %K over 3 candles and draws %D as the 3-candle average of %K. A bearish cross is when %K crosses below %D right after being above 80, the overbought zone. It hints that buying may be tiring, but in a strong rise the stochastic can stay high for a long time.

Thinking a high stochastic means price must fall right away.

The stochastic bearish cross in full ›

Real odds side by side

PatternFoundTarget firstStop firstWent nowhere
Stochastic bullish cross98,04135%57%8%
Stochastic bearish cross108,29636%58%7%

Counted by the Trading Class research engine on real past candles: entry at the signal candle's close, target 1.5 × ATR(14), stop 1 × ATR(14), 12 candles to decide, a candle that touches both counts as the stop. How we count. Past data, not a forecast and not advice.