Forex trading strategy #6 (Double Stochastic)

HI SIR. THANKS FOR THE GOOD WORK.PLS IS BOTH STOCHASTIC EXPONENIAL OR SIMPLE.I ALSO USE METATREADER4 WILL SETTING THE SECOND STOCHASTIC BRIND THE SAME RESULT?
PETER NIGERIA

Thanks a lot Edward for your quick response. I cannot watch the market every minute during the power hours in the early morning because I live in Los Angeles so those hours are 4am til about 9am in most cases and thats when I am actually working. So i'll be practicing the daily+hourly charts. Thanks again for tips.

Take care and Happy Trading,
Darin

Hi Darin,

It would depend on your profit goals, but even more it'll depend on how much time you have during the day to monitor your trades.
I would certainly prefer daily + hourly charts versus short term intra-day trading. But at the same time if someone likes to keep a close eye on the market, then hourly + 15 min or 5 min trading is also a good option.

Best regards,
Edward

Thanks Edward for the response.Before I was using only the 1 hour chart for intra day trading. But now I am practicing the long term strategy using the daily chart along with the hour chart, waiting for both the daily and hour charts agree in direction before entering a trade as you stated.I think I like using that one better. In your opinion or personal experience, which strategy have you found more profitable with these rules, the long term trend using the daily/hourly or intra day using hour chart only? I know you have many other questions to respond to on your site so whenever you have free time to respond I would appreciate it. Im just really motivated with this strategy. thanks a million.
Darin.

Hi Darin,

It wouldn't make it too complex. you just have to remember that Fibs and Pivots should be used for reference or guidance if you will, while primary signals should be taken using the original rules.

Regards,
Edward

Hello Edward,
This is Darin again. I wanted to thank you for your response to my previous question. I have just one more for you if thats ok with you. Would you recommend using the Fibonacci Retracement, Fibonacci Extension, or Pivot Points(daily,monthly)with this strategy or will that make it too complex?

Thanks Again,
Darin.

Hi Darin,

Of course, if you use 2 Stochastic indicators, you want them both agree on the signal.
So, you check first the signals from 21, 9, 9 Stochastic and then turn to 9, 3, 3 to time your entry perfectly and enter as soon as both Stoch agree on a momentum and direction.

Regards,
Edward

Hello Edward,
I really enjoy your website. this strategy has restored my confidence in trading FX. I just had a question regarding this double stochastic strategy. Say the 21,9,9 stochastic crosses over and you get in. However the the other 9,3,3 stochastic is not agreeing with the 21,9,9. And the trade goes against you 60 pips. Should you still stick with the 21,9,9 until it crosses back over or should you wait to place an order after the 9,3,3 finally agrees with the 21,9,9? Sorry so long...just want to make sure I discipline myself.
Thanks in advance,
Darin.

Hi guys,

Want to share a video with a good strategy example for the Stochastic indicator:

Enjoy!

Yes, you've got it right, Matt.
Happy trading!

Edward

Hi Edward,

Please just to clarify, what you are saying with the re-entries is that they are always in the same direction as the initial entry from the 21 period line? I.e. if initial 21 line signal is short (as your diagram above) then all further entries signalled by 9 line are also short sells? ONly exit all trades once 21 line crosses back?

Thanks, Matt

Hi Lynn,

The stop would be below the most recent bottom (swing low) or top (swing high).

You may also try using this MT4 custom indicator for placing and trailing stops.

Regards,
Edward

Hi Edward:

Where you you suggest I place me stops when using the Hour Chart? Daily Chart? Thanks.

Lynn

EURGBP tested: Full Stochastic (9, 3, 3) combined with Full Stochastic (11, 10, 2) [for bigscreens only ;-)] : give good entry/exit signals for time frame chart: 1 hour, 1 day (10 and 90 extra horizontal lines are useful)

Yes, I would take another trade if both Stochastics provide yet another Sell or Buy signals.

Regards,
Edward.