DTR V 1.0

DTR V 1.0 is a momentum-based reversal strategy that combines the Stochastic Oscillator and the Relative Strength Index (RSI) to identify potential turning points in the market. It uses dual confirmation to filter out weak signals and focus on moments when price is genuinely stretched.

The strategy calculates Stochastic and RSI using user-defined lengths (default 14). A long entry occurs when both indicators show oversold conditions: Stochastic falls below the Oversold Level (default 20) and RSI drops below the RSI Oversold Level (default 30). This suggests weakening downward momentum and a possible reversal.

A long position is closed when both indicators reach overbought conditions: Stochastic rises above the Overbought Level (default 80) and RSI moves above the RSI Overbought Level (default 70). This helps capture the rebound move without staying in during momentum exhaustion.

DTR V 1.0 works best in range-bound markets, where oscillators frequently move between extremes, and it can also be effective for catching pullbacks within uptrends. It is generally suited for intraday to swing-trading timeframes. Like most oscillator-based systems, it may struggle during strong trending or high-volatility conditions where overbought or oversold readings can persist.

All thresholds and indicator lengths are adjustable, allowing traders to tune the strategy to different assets and market environments.