Forex trading strategy #40 (MACD + Fast Stochastic)

Submitted by chrisforextrader
Simple Strategy. Using Slow MACD & Fast Stochastic.

Timeframe: Any
Market Action: EMA21 + EMA55
Price Action: EMA5 + SMA8
MACD: 21 55 8
Stochastic: 8 3 5

This strategy is very simple and successful but will not get you in at the beginning of the move or exit at the end but will give a high success rate.

When the MACD Line and Signal Line cross, wait for the Stochastic to cross in the same direction!! (Don`t trade if Stochastic in overbought/oversold zones)If you are an agressive trader you can enter when the MACD and Stochastic cross at the same time, otherwise once the MACD has crossed, wait for the Stochastic to cross before entering. (The MACD must cross first!!)

Exit the trade when either the price action is clearly showing a change in direction (Long - Lower Highs) - (Short - Higher Lows) or the MACD lines cross back.

Purple = MACD/Signal Line Cross. Red = Stochastic cross / Entry. White = Exit

Edward Revy,

Copyright © Forex Strategies Revealed

I don't know about following the MACD signal with the Stochastic signal.

I normally use a leading indicator (Stochastic) first (look for crossover below 20/above 80) followed by confirmation from a lagging indicator (MACD) that the trend is in agreement with Stochastic.

Hi Edward, thanks for this site, inspires me to find my style.
I did a custom search on google as a thank you on this site,
since i know some ad-$$ You should see it in your account. ;-)

I have tested this several different ways with success in EA backtesting.

EURUSD 30 minutes
MACD = 6/13/5
Stochastic = 5/3 fast
Only 1 trade per MACD cross, which is the next Stochastic cross in the same direction.
Limit = 20
Stop = 60
If it is stopped out, I use 5 times the lots next trade only.

Hi guys, great site. Is anyone tested this strategy? It sound good:)

that's full stoc, he speak about 3 parameters (8, 3, 5)

By default that would be Full Stochastic or Slow Stochastic.

i like this

So this "Stochastic" is ment to be Full Stochastic or Fast Stochastic? I'll will test this system and give the results, hope it works! :)

Tq...hope that usefull..

Hi Edward,
I summited this strategy but forgot to give my name - chrisforextrader.
The chart shows EUR/USD -1 minute which I like to scalp.
This trade gave me a 22 pips profit with a 5 pip stop.
Forex-strategies-revealed is a valuable educational tool and I really appreciate your work and input.

Post new comment

This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Enter the characters shown in the image without spaces.