Stochastic lines crossover

Here is a very basic overview of a role of a Stochastic indicator in the Forex trading. Knowing exactly what to expect from Stochastic, if you ever plan to add it to your own system, will affect trading results dramatically. For this trading method:

 

Currency pair: Any.
Time frame: Any.
Indicator: Stochastic (14, 3, 3)

 

Entry rules: Buy when the faster moving Stochastic line crosses above and up over slower moving stochastic line.

 

Exit rules: Sell when the opposite situation (next crossover) occurs and right after that open an opposite position. It is again recommended, once the first touch of Stochastic lines (possible future crossover) has been spotted, to wait until the following price bar on the chart has closed and only then take actions.

 

 

Advantages: can give entry and exit rules, easy to use.

Disadvantages: Stochastic is a lagging indicator – with this lines crossover system it can create a lot of false signals. Traders may want to change Stochastic regular settings for each particular currency pair to eliminate as many false signals as possible. Stochastic crossover system is good when used in combination with other indicators.


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Posted By toyafields : 31 August, 2020
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hiiam trading with some range pairs eurchf,eurgbp,usdjpy with one strategy ofcourse it is scalping.my trades are mixed with others while trading with this strategy.strategy iswe attach indicatorsbollinger band[20]envelope[14]we use time m15logic=when price [up]exceeds both upper bb and upper envelope we short.when price[down]exceeds both lower bb and lower envelope we longstoploss 25take profit 8.with this sl and tp for three days i have 16 wins out of 18.i traded eurchf ,eurgbp,usd jpy[the loosing trades went wrong side maximum 100 pips and retraced almost 50%]and i observed last 2 years charts.i noticed that with stoploss 35 take profit 12 there is almost 80% winning.this is without martingale.-------------------------------------------when we make some martingale for losing trades almost all failure trades survive with in 200 pips range.i noticed if we use martingale as follows0.1 first ordergap 15 pips =150.1 lotgap 25 pips =400.1 lotgap 40 pips =800.2 lotgap 80 pips =1600.4 lotlock all orders at 220pips =220release all at extrreme level[use rsi,we can make it by manual also]stoploss 40 ,tp breaeven+30 pips  


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