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

Explore strategies using consecutive down/up closes, Stochastic oscillator crossovers, and a 5-day Rate of Change for trade entries. Simple and effective.

Published · Updated · Methodology: Technical Indicators

Part of: Stochastic Oscillator

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: Not specified
  • Markets: Not specified

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 - Why simple beats complex
  • 0:45 - The entry selection problem
  • 1:45 - Strategy as a puzzle
  • 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 reports where the latest close sits inside a recent high-low range, so a depressed reading simply means price is trading near the low end of where it has recently been. What makes this entry worth cataloguing is less the indicator than the argument built around it: Ali Casey's video "These 3 Entries Beat ICT (And They're Embarrassingly Simple)" opens on what it calls the entry selection problem, and then reframes a strategy as a puzzle in which the entry is one piece among several rather than the place an edge is supposed to live.

That framing shapes what the Stochastic is asked to do here. Alongside a run of consecutive down closes and a five-day rate-of-change reading, it appears as a candidate for a single slot in that puzzle — a condition narrow enough to be written down completely, checked against history without judgement, and swapped out if it underperforms. The StatOasis channel comes at markets from a statistics-first angle, and the dividing line the video draws against discretionary price-action methods is less about which indicator wins than about which conditions can be specified precisely enough to be tested at all.

This record captures the components the source names — a Stochastic reading and a short-lookback rate-of-change measure — without a fixed timeframe attached, and the video's chapter list is organised entirely around the entry piece, which means the parts that turn an entry into a system (exits, risk, position sizing) sit outside this material. The video itself is where the walkthrough of each entry lives; this page covers the concept and the context around it.

Topics

trading strategy · pine script · tradingview strategy · technical indicators · stochastic strategy · rate of change strategy · buy sell strategy · momentum trading · oscillator strategy · simple trading strategy · consecutive closes strategy · entry rules · trading indicators

Frequently asked questions

What does the Stochastic Oscillator actually measure?

It measures where the current close sits within the high-low range of a recent lookback period, expressed on a 0–100 scale. Readings near the bottom mean price is closing near the low of its recent range; readings near the top mean the opposite. It is a position-in-range reading, not a forecast.

What does a Rate of Change indicator add alongside a Stochastic?

Rate of Change measures the size of a price move over a fixed number of bars — the source works with a five-day lookback. Where the Stochastic answers where price sits in its recent range, Rate of Change answers how far it travelled to get there, so the two describe a pullback from different angles.

Is an entry signal on its own a complete trading strategy?

No. An entry condition only decides when to open a position; a strategy also needs exit rules, risk limits and position sizing. The source video is explicitly organised around the entry component, treating it as one piece of a larger structure rather than a standalone system.

How can I evaluate an entry condition like this before trading it?

Test it as an isolated variable on historical data for the market and timeframe you actually trade, holding the exit and risk rules constant so you can see what the entry itself contributes. Strategy Decoder catalogs strategies discussed in video sources so you can find the concept, the source and its context in one place.

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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