Forex trading strategy #14 (Stochastic + EMAs' cross)
Submitted by User on October 10, 2008 - 06:04.
Submitted by Arsalan
------------------------------------------------------------------------------
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.
Read entire post >>>
Hi Edward,
Nice one bro, I appreciate..
Thanx Eddy!
Hi all,
Great simple strategy! I might suggest a small refinement on the entry. When the "trigger" candle closes set a stop entry just outside the end of the candle in the direction you are expecting to trade. For example, if the setup is a buy setup, set your 'stop buy' order just above the top of the "trigger" candle.
The stop entry orders only triggers when the price reaches the set price. For the above example, this means if the price doesn't continue to rise above the previous high your not in the trade. This has saved me a lot of false entries with many strategies.
On the MT4 platform the stop orders are found in the order entry screen under "pending orders".
The "trigger" being the one the meets both criteria for the MA and stochastic cross as defined in the strategy.
Best of luck!
Drew
Thank you, Drew!
Happy trading!
Edward
hi..
First of all thank you so much for the strategies you have posted.
My question is in my Forex Platform I have 3 indicatord, 1: STOCHASTIC 2 Stochastic Fast 3 Stochastic Slow
out of that I have attached the display of first 2 indicatord, and which one should I use
Thank you
Milanthi
Hi Milanthi,
You should use Stochastic Slow.
(Optionally try Stochastic, although I don't know what formula they use there.)
Kind regards,
Edward
Seems like a great strategy.. But can I use it on the 15 or 30 minute timeframe?
I'd say yes, but be ready to have more trading signals and some false signals too.
Post new comment