Consecutive Down Closes, Stochastic, 5-Day Rate of Change

Discover a daily trading strategy using consecutive down closes, Stochastic oscillator, and 5-day Rate of Change for simple buy/sell signals on various markets.

Published · Updated · Methodology: Technical Indicators

Part of: Stochastic Oscillator

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: Daily
  • Markets: Not specified (implied general market)

Indicators used

  • Stochastic Oscillator
  • Rate of Change

Source video

Decoded from: These 3 Entries Beat ICT (And They're Embarrassingly Simple) by Ali Casey | StatOasis — watch the original

Key timestamps:

  • 0:00 - Introduction: Why simple beats complex
  • 2:45 - Entry 1: Consecutive Down Closes
  • 5:00 - Entry 2: Stochastic
  • 7:15 - Entry 3: 5-Day Rate of Change

Strategy overview

The Stochastic Oscillator measures where the current close sits inside a recent high–low range, so a low reading means price is finishing near the bottom of the ground it has covered lately. What makes this entry worth a separate look is the company it keeps: it appears in a video from Ali Casey's StatOasis channel that sets three plain daily-bar triggers against the elaborate, discretionary machinery of ICT-style trading, under the title "These 3 Entries Beat ICT (And They're Embarrassingly Simple)".

The three entries — a run of consecutive down closes, the Stochastic, and a 5-day rate of change — are best read as three different ways of asking one question: has price fallen far enough, recently enough, to be worth leaning against? Each answers in a different unit. Counting down closes uses nothing but the sequence of bars. The Stochastic answers positionally, locating the close within the range. Rate of change answers in magnitude, measuring how much ground was covered over a fixed five-session window. The same instinct, measured three ways — and they will not always agree, which is why the video treats them as separate candidates rather than stacking them into one combined filter.

All of it sits on daily bars, which puts this some distance from the intraday overbought/oversold reflex the Stochastic is usually associated with; on a daily chart the same reading describes a swing-scale pullback rather than a session-scale one. The video opens with its case for why simplicity holds up (0:00), then takes each entry in turn at 2:45, 5:00 and 7:15. This page catalogs the concept and the indicators involved; the argument for each trigger, and the reasoning behind it, belongs to the source video itself.

Topics

trading strategy · pine script · tradingview strategy · technical indicators · stochastic strategy · rate of change strategy · daily trading strategy · swing trading · price action · simple trading strategy · stochastic oscillator · roc indicator · consecutive closes strategy

Frequently asked questions

What does the Stochastic Oscillator actually measure?

It expresses where the current close falls within the high–low range of a recent lookback period, scaled from 0 to 100. Readings near the bottom mean price is closing at the weak end of its own recent range; readings near the top mean the opposite. It is a measure of position within a range, not of trend strength or momentum size.

Why does this video compare simple entries to ICT?

The framing is the video's own: it argues that entry triggers you can state in a sentence can hold their own against far more elaborate discretionary frameworks. The Stochastic entry is presented as one of three examples of that claim, not as a criticism of any particular methodology's internals.

Are the three entries meant to be combined into one setup?

The video presents them as three separate entries, each covered in its own segment, rather than as conditions to be stacked together. They measure related things in different ways — bar sequence, range position, and move magnitude — so they can disagree on the same chart, and combining them changes how often a signal appears.

How would I evaluate a daily Stochastic entry like this one?

Test it on daily historical data across several instruments and market regimes before committing capital, and check how the results change with different lookback and threshold choices — range-position entries are sensitive to both. Strategy Decoder catalogs strategies like this one from their video sources so you can find the concept and take it to TradingView yourself.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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