Forex trading strategy #3 (Stochastic High-Low)
Submitted by Edward Revy on February 28, 2007 - 13:54.
Forex systems which adopt a Stochastic indicator for monitoring the price provide some very good tips about the situation on the market for traders that are willing to see it.
Currency pair: Any.
Time frame: Any.
Indicator: Full Stochastic (14, 3, 3)
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schocastic show as a good entry and exit when the market has been overbought and oversold.
You may add trend lines to the chart. They will help to eliminate majority of false signals.
While a trend line remains intact there is no change in the trend, therefore Stochastic signals should be ignored.
Once the trend line is broken and Stochastic also signals of a trading opportunity - that would be the right time to place a new order.
Regards,
Edward.
What signal may be used with stocastic to eliminate entering on false signals?
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