Forex trading strategy #3 (Stochastic High-Low)

This does not work on either 1 minute, 5 minute, 15 minute, 30 minute.
You should use other signals along with this to confirm. By itself it gives you a lot of false signals.

i've used this method for a while...i use candle pattern for a better entry

For M1, M5 charts I would use Stoch 5, 3, 3 and also a slower one: Stoch 20, 3, 3.

Regards,
Edward

Hi Suri,

MT4 indicators are customised to get a better interpretation of the price: either by enhancing the visual appearance of the indicator or by adding/editing new formulas.

If you start with using a standard Stochastic indicator found on your MT4 platform, you'll lose absolutely nothing. Standard indicators are used by the majority of Forex traders.

Besides, you can always put both standard and custom stochastic side by side on the chart and compare the signals as you trade. then choose the one you like most.

Happy trading!
Edward

Hi Edward,
Le me first thank you great service doing here.

I am using MT4, i would like to know the difference bet Stochastic Oscillator and Custom Indicator- "Stochastic" is there any diffrence ? Which one should i add to my chart ?

Suri

Stochastic cross under 20 & RSI cross above 50 are my best & strong indicators to entry to the market.

Thank you,
Abu Layan
www.alreport.com

Hi Nils,

In MT4 platform Stochastic has 3 values:
%K period = 14
%D period = 3
Slowing period = 3 (that's what Francois meant)

These are default values, which give us Stochastic with parameters (14, 3, 3).

In order to adjust Stochastic to shorter time frames, such as 1 min, 5 min, 10 min etc, traders use Stochastic (5, 3, 3).

Regards,
Edward

How do I adjust the %K and %D? What does "slowing values" - comment from Francois above - mean? When I want to adjust for shorter time frames (such as 5 min and 10 min), how do I do this?

Thank you,

Nils

5 min, 30 min, hourly and daily.

Thomas

What time frame is best suited for this?

Depending on market situation and overall trends I can double an account over 1.5 - 2 months on average.

Regards,
Edward

Dear edward i have been reading ur comments and noticing how exactly u giving ans to all people,i wonder how much money u make from Forex with all this knowledge if u dont mind will u please share it with us how much u make from Forex monthly? hehe may be i am asking to much but belive me i will be motivated to much, u will be my motivation factor to stay n Forex market.

Thanx bless u.

"Sometimes it reverses half way ie moves above 20 but before it reaches 80, it reverses back down. Any ideas to overcome this?"

Answer: I prefer you plot the trends lines correctly and use EMA's explained previously in Simple Strategy 1 as some times you see that it crossed the 20's but actually the trend is up and close to the resistence here you wait as it could be false signal or sign of Divergence. I feed beeing patient and observe your chart is the only way you can prevent such false entries and also use 1 hour frame time as it’s the best proven till now I am using it and its quite successful.

_ Thulfaqar A ayyad

Suggested for GBP/USD at 60 Minutes (H1) Charts used Full Stochastic 20,3,3

There is no ways to overcome that. If it doesn't fit the rules, don't trade. :)
Cheers,
Sam