The Stochatic Trading system that can produce extra pips
Based on this strategy, I present to you the below signal
Today
Currency Pair: EURUSD
Take profit: 1.0584
Stop Loss: 1.0649
Broker: Profiforex
I think this is valid. The signal is an uptrend when the Stochastic is above the moving average. In such situations, I will just open a long positions on a EURUSD, this time I ignore sell signals. And when I notice it going down below the moving average, I will now know that it is a downtrend signal, I will then ignore buy signals.
I think I must add here that I am impressed that this system is not focusing on just making more pips and more money. It also involves a measure of risk management with the addition of stop loss. The fractals as I have seen plays such great role in this system when I tried it. I placed stop loss can be placed at the ame level as the last fractal and it helped a lot in protecting my trade.
The stochastic basically involves getting signal from an overbought and oversold region of the % k stochastic line. If above 70, we have an overbought and tend could likely fall. When I try to get a general idea of the current trend, I simply combine the Stochastic with a MACD and bollinger bands. This will help me know the face of the trend.
Sometimes I just combine the stochastic with an exponential moving average, sometimes two EMA: a 4-period and a 2-period. The idea here is to sell the EMA crossover, and then I will use the stochastic oscillator to remove false signals. It works best on a daily time frame.
Another way round this is using the dual stochastic strategy of combining a slow and a fast stochastic,then you wait for opportunities when the two different indicators are placed at extreme opposites. Then confirm the signal using the middle of the Bollinger bands.
Oversold conditions are good times to buy when using the stochastic. When the %k stochastic crosses into the oversold region, it becomes very likely for trend to reverse and prices pick up relatively. A combination of the stochastic with a short period EMA is one good way to trade with the stochastics.
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Based on the Stochastic
This is a completely free trading system.
When Stochastic is above its moving average, it signals an uptrend, in this case we open only long positions, sell signals should be ignored. When it is below its moving average, it signals a down trend, in this case we open short position, buy signals should be ignored.
Now in order to identify the entry point, we apply the awesome oscillator. The Awesome Oscillator gives a buy or sell signal called a Saucer. You’ll see a red bar after two green bars or a red bar after two green bars. This is the trend reverse signal.
How to Trade on Stochastic; VIDEO and Picture illustration- you can learn how to install the indicators.
At this point we need to identify when to close the deal. We will make use of the Fractal in this case. We place the stop loss at the level of the last fractal. We close the deal if we receive the entry signal in the opposite direction.
You need to watch the video or use the image description from the link above to be able to use this strategy effectively.
Check out some profits I have made using this system for a few days.
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