Journal
Stochastic crossovers inside ranging markets
Oscillators thrive in ranges because price repeatedly visits opposite boundaries. A %K/%D cross near the middle of a well-marked range rarely deserves the same attention as a cross that occurs after price has tested the range extreme.
Map the range first with horizontal marks. Only then watch Stochastic for a cross that leaves the oversold or overbought pocket while price is still near that boundary. That pairing is the confirmation; the cross by itself is merely motion.
When the range begins to break, Stochastic behaviour changes character. Crosses that once meant mean reversion can start to mean continuation. Our Intensive spends a full session on recognising that hand-off so students do not apply yesterday’s rule to today’s structure.
Homework for this topic is simple: print one ranging week and one breaking week, and write which crosses you would have ignored.