Forex trading strategy #14 (Stochastic + EMAs' cross)
Submitted by User on October 10, 2008 - 06:04.
Submitted by Arsalan
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I have developed a new strategy and it is based on stochastic and exponential moving average. Although it is very simple but it is very effective for short term trading.
The strategy is as follows:
Time frame - Daily.
Indicators - Stochastic (5,3)
2 Days exponential moving average.
4 Days exponential moving average.
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This is the best of all trading systems, which I tried. Great work! Thanks, Ilya
I am glad that you like this strategy.Thank you for your sweet compliment.
Happy trading,
Regards,
Arsalan
Hi Friends,
Try this strategy with 3Ema and 6 Ema instead of 2 Ema and 4 Ema and change the stochastic setting of 5,3 to 9,4. I hope this modification will give more accurate signals.
Happy Trading,
Regards,
Arsalan.
Dear Arsalan, thank you so much for your efforts to make us all better traders. My question is this: do we enter after ema cross and candle is fully formed (ie beginning next candle) or immediately after cross is confirmed and current candle hasn't closed? Thanks Again,
Alex
Hi Alex,
In my opinion, a candle should close, thus solidifying the moving averages' crossover, before you enter. Keep in mind though, that even this doesn't guarantee an absolute winner, because if price situation changes drastically moving averages may "uncross" few candles down the road. It may happen, and you should be ready.
But at least waiting for a close of the first signaling candle you've got some backup.
Regards,
Edward
Hello.I have tryed you system and it works.I only made 4 trades and they were all succesful.Thank you.
HI,
I NEED TO KNOW HOW TO SET EACH INDICATOR PROPERLY.. FOR THE STOCASTIC, I USE ALPARI BROKER AND I HAVE ATTACHED 2 SCREEN SHOTS OF THEIR STOCHASTIC OSCILLAOR. PLEASE ADVISE ME ON HOW TO SET IT IN ORDER TO ACHIEVE POSITIVE FROM THIS STRATEGY.
ON THE PARAMETER FIELD,
% K PERIOD: ?
% D PERIOD: ?
SLOWING: ?
PRICE FIELD: LOW/HIGH OR CLOSE/CLOSE (WHICH SHOULD I CHOSE?)
FIXED MINIMUM: ?
FIXED MAXIMUM: ?
MA METHOD: ?
FOR THE 2ND TAB: LEVEL FIELD
WHAT LEVEL SHOULD I SET IT TO?
I HAVE ATTACHED THE SCREEN SHOT IN ORDER FOR YOU TO UNDRSTAND MY QUESTION
CAN YOU SEND A COPY OF YUR RESPONSE TO babatunde_od(at)yahoo.co.uk please? I'D REALLY APPRECIATE.
THANX,
babatunde_od!
Hi,
the numbers would be as follows:
% K PERIOD: 5
% D PERIOD: 3
SLOWING: 3
PRICE FIELD: LOW/HIGH OR CLOSE/CLOSE (WHICH SHOULD I CHOSE?)
FIXED MINIMUM: 0
FIXED MAXIMUM: 100
MA METHOD: simple
FOR THE 2ND TAB: LEVEL FIELD
WHAT LEVEL SHOULD I SET IT TO?
80 and 20.
So, looking at your screen shots, you don't need to change anything.
Best regards,
Edward
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