Forex trading strategy #6 (Double Stochastic)

thank you Edward.

I see.
Well, we can get such value, if to calculate it this way:
4h = 240 min
so if 30 min is 1/8 of 240 min,
Stoch 5, 3, 3 on 4h TF would resemble Stoch 40, 24, 24 on 30 min TF.

Regards,
Edward

thanks Edward.

I just want to know the equivalent of stochastic of 4hr TF in 30min TF. is it possible?

Hi Sam,

We actually use the same settings for Stoch on 30 min and 4 hour TF.

Regards,
Edward

Hi anyone,

can i know the equivalent of stochastic 5 3 3 of 4hr TF in 30min TF?

thanks

Sam.

Hello From Belgium
Backtested this strat : sometimes there's a drawback of 400-500 pips! Who can afford that much 'pain'? I think most account will be closed before any profits could been made.
Great site, although all indicators are lagging, it becomes verry difficult to
earn some money using ta.
Best regards,
Rudy

Many thanks Edward.
Will continue to watch the XAUUSD as the story unfolds.
I have been trying your Advanced #5, Trend Line Breakout strategy on the AUDUSD with success. The timing works well for Australians being our late afternoon and early evening.
Regards
Morrie

Hi Morrie,

even after this trend line break, it brings little appetite to buy XAUUSD at the moment: still close to major resistance at 1000.00-1004.00; still could be a false breakout. Basically, it'll be called "buying into resistance" if we do so now, because price is still trading inside the horizontal resistance area (highlighted in blue on a weekly screen shot few comments back).
As for me, it is a beginning of a waiting game, where the break of the trend line acts as the first directional tip.

Regards,
Edward

Hi Edward
It appears the XAUUSD price at $1,004.20 is now above the upper trend line on the weekly chart. Should I wait till the weekly candle is complete?. Is this an upward break even though the price is still below the high established in the week of 13th March 2008 of $1,032.50?.
Thanks
Morrie

You're very welcome, Morrie

The trend line you've identified (July 2007 to November 2008) will play its important role too down the road.

Regards,
Edward

Many thanks Edward
You have a wonderful way of making the charts seem so clear and highlighting the main indicators . I think I need to learn more about drawing trend lines as I had connected different points on the weekly chart for the lower line back to July 2007, still a triangle through. It will be fascinating to watch this pattern evolve.
Thanks
Morrie

Hi Morrie,

Here are weekly charts with:
- support/resistance zones - in light blue
- trend lines - in red
- areas of clear Sell and clear Buy zone - blue dots.

Price has formed a triangle and now traders have a great opportunity to trade a breakout. Most likely to the downside and it is expected to be aggressive. The first call - the trend line break.

Now to 4 hour charts:

while price trades below the blue trend line which acts as resistance now, the bias is to the downside.
Two trend lines above: red - most obvious and well tested, and orange - just connecting recent peaks - both can help to anticipate the next point of resistance should price rise once again towards approx. 950 level.

Either way, as you can see 1000 is a significant level, unless we are clearly above it, I'll be giving preferences to Short trades.

Now, what time frame should you focus on?
The answer is - weekly time frame. Unlike 4 hour or 3 hour chart, it sends a clear message that despite pushing upwards, the roof around 1000 still holds, so, we can enjoy the range as long as we like, but we are no longer in an uptrend until we clear that roof.

Regards,
Edward

Hi Sam,

2 Stochastics on 1 time frame: either daily or hourly.

Regards,
Edward

Hi Edward,

Pls, I don't get this.....

are u considering 2 stochastics on 2 timeframes or 2 stochastics on one time frame before you take a trade?

thanks
Sam.

Hi Morrie,

Saturday evening, I just reviewed your question. Sorry for the delay, I'll be able to answer it on Tuesday.

Regards,
Edward