Does a Stochastic oversold bounce work as a swing trade entry?

We want to catch short-term bounces in stocks that are still in a long-term uptrend, using the Stochastic oscillator to time the entry. Compute the 14 period Stochastic %K and its 3 period simple moving average as %D. Enter long when %K crosses above %D while both are below 20 (an oversold crossover), and the close is above the 200 day simple moving average. On the entry bar, measure the 14 period ATR and place a protective stop 1.5 ATR below the entry price. Size the position so that hitting that stop loses exactly 1 percent of account equity. Round down to a whole number of shares. Take profit at 1.5R, that is one and a half times the distance between entry and stop, placed above the entry. If %K crosses back above 80 before either level is hit, exit at the next open. If the position has been held for 20 trading days without resolving, exit at the next open as well. Long only. One open position per ticker at a time. No leverage and no pyramiding.