Advanced system #3 (Neat entry: RSI + Full Stochastic)
Submitted by Edward Revy on May 13, 2007 - 15:40.
Current strategy has won the hearts of many Forex traders. And why not when it has a great winning potential.
Strategy requirements/setup:
Time frame: daily
Currency pair: any
Trading setup: SMA 150,
RSI (3) with horizontal lines at 80 and 20,
Full Stochastic (6, 3, 3) with horizontal lines at 70 and 30.
Trading rules:
Entry for uptrend: when the price is above 150 SMA look for RSI to plunge below 20. Then look at Stochastic - once the Stochastic lines crossover occur and it is (must be) below 30 - enter Long with a new price bar.
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Can I use slow Stochastic with settings 6, 3, 3. Coz i have only two options for Stochastic (Fast and Slow), I don't have full stochastic. What should i do? Can I use slow or Fast instead of full, if yes then which is best Fast or Slow.
Hi.
Yes, you can use a Slow Stochastic and it should work just fine here, but not the Fast one.
Regards,
Edward.
Realy it is a great website here especially for daily chart trading
i advice all to aviod noise
HI EDWARD....YOU MENTIONED FULL STOCHASTIC.6,3,3...IS IT SIMPLE OR EXPONENTIAL? AND IF SO...IS THERE ANY DIFFERENCE BETWEEN THE TWO?
THANK YOU IN ADVANCE AND HAVE AN EXCELLENT DAY,
TOMMY.
A Full Stochastic is a universalization of the Fast and Slow Stochastic.
Full K% = N period moving average of the %K Fast
Full D% = N period moving average of the %K Full
Some more formula details here at Wiki:
Stochastic in Wikipedia
Thank you.
Edward.
Hi Edward,
Thank you for sharing your excellent strategies with us. Have you given consideration to combining this method with your midnight trading strategy. Thank you.
Forexnetworth
Thank you Forexnetworth,
Having a lot of good Forex strategies accumulated over the years and constantly working on new ones I do combine a lot of them in my own trading approach, so that my own Holy Grail :) trading system stands up for its name.
I and my colleagues would like to thank everyone for the warm friendly feedbacks and great questions!
Stay tuned as we will continue revealing new interesting strategies for you to test and trade!
Cheers,
Edward.
Love the site. Thanks for actual, useable and understandable forex trading knowledge with no strings attached. Do you recommend any current favorite strategies for shorter time frames (1hr or less)?
Igmar
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