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Developing a system #10 (GBPJPY hourly trading)

Submitted by Blackanddecker

GBP/JPY pair hourly only.

Seems to me that the GBP/JPY pair is moving wildest - lots of profits and losses are easy. What does anybody think about Full Stochastic 5/3/3 with SMA 5 and EMA 5.

When the EMA 5 moves above the SMA 5, buy. When it moves below, sell. Use the Stochastic 5/3/3 as confirmation.

Close on the reverse of the SMA-EMA. Or set limits at 50.

I find that a 15 minute chart with Stochastic 20/12/12, SMA 20 and EMA 20 works better.

I have been only doing histories so far.

Thanks.

Blackanddecker



http://forex-strategies-revealed.com/


Could you post a screenshoot please ? Thanks.

Regards;

Manus168

GBPPY 5 min forex

its a good system but the settings u put is very close to that found on this link:
http://www.forexfactory.com/showthread.php?t=120606

I use it too but i apply it on 5min tf and with MACD setting of 12,26,2 i make sure my stoch of 5,3,3 is at the extreme point and i also make sure that i close pending orders if counter trade signal comes in. A small statement of account, how i trade it today is attached.

Please try uploading again. You'd need to insert a link you receive upon uploading into the comment body, otherwise it is impossible to find a file. Thank you.

Thomas

The strategy simply uses standard, or rather very common indicators.
The idea appears to be to use price momentum and benefit from it.

I think we could make something of it, however, I find it difficult watching such close to each other moving averages, so I opt for easier technique, which in fact also allows me to confidently trail my stop.

Below is my vision of Momentum trading using Stochastic indicator and Heikin-ashi candlesticks.

Catching price momentum in Forex

I'd enter on the change of Heikin-ashi bar color, but only if it occurs after Stochastic clear cross in oversold/overbought area.

+1 step further and we can add a filter on trend trading. By adding 100 Simple moving average we can now take only those trades which move with the trend, e.g. when price trading above 100SMA we'll be taking only Long signals, below - only short.

Regards,
Edward

Hai Edward,

What a great method u got there..very simple and easy to understand..i wanted to test that system but my heikin aishi is slightly different...it can only be used when im using bar chart..anyway can i have ur heikin aishi indicator(candlestick)please?

Azim

Hi Azim,

Here it is:
Heiken_Ashi.mq4

In order to see only Heiken Ashi candles on the chart, edit chart Properties by changing the normal candlestick display color to black.

Regards,
Edward

Essentially it's a stoch trade regardless of what you add to it.
If you'll notice the two MAs lag the Stoch and only prevent a more
timely entry.
Better still look at RSI 14. RSI is even faster than Stoch for entries.
And it tells you if the market is a bear or a bull market in an instant.
The use of two MAs appears interesting. But on further examination it is
redundant. We want to try to keep these methods as simple as possible.
George Lane the inventor of Stoch used stoch and RSI, a trendline
and a 20MA.

Some understanding of Elliott Wave on your part will also help confirm
where you actually are in the market. It's not just about indicators
and MAs in a vacuum.

Mike