Stochastic High Low Strategy ~ forex trading expo

11:57 AM in averages, crossover, Forex, high, low, moving, slow, stochastic, strategy

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)


Entry rules: When Stochastic has crossed below 20, reached 10, and then crossed back up through 20 – set BUY order.
Entry rules: Sell when Stochastic has crossed above 80, reached 90, and then crossed back down through 80.
Exit rules: close trade when Stochastic lines rich the opposite side (80 for Buy order, 20 for Sell order).

Advantages: gives quite accurate entry/exit signals in well trending market.
Disadvantages: needs periodical monitoring. Stochastic is suggested to be used along with other indicators to eliminated entering on false signals.

Source: forex-strategies-revealed

forex trading expo

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Stochastic Lines Cossover Strategy ~ forex trading explained

8:16 AM in cossover, Forex, high, lines, low, stochastic, strategy

Here is a very basic overview of a role of a Stochastic indicator in the Forex trading. Knowing exactly what to expect from Stochastic, if you ever plan to add it to your own system, will affect trading results dramatically. For this trading method:

Currency pair: Any.

Time frame: Any.

Indicator: Stochastic (14, 3, 3)

Entry rules: Buy when the faster moving Stochastic line crosses above and up over slower moving stochastic line.

Exit rules: Sell when the opposite situation (next crossover) occurs and right after that open an opposite position. It is again recommended, once the first touch of Stochastic lines (possible future crossover) has been spotted, to wait until the following price bar on the chart has closed and only then take actions.

Advantages: can give entry and exit rules, easy to use.


Disadvantages: Stochastic is a lagging indicator – with this lines crossover system it can create a lot of false signals. Traders may want to change Stochastic regular settings for each particular currency pair to eliminate as many false signals as possible. Stochastic crossover system is good when used in combination with other indicators.


Source: forex-strategies-revealed

forex trading explained

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Double Stochastic Strategy ~ forex trading drawdown

6:58 AM in double, Forex, high, low, rsi, stochastic, strategy

By doubling on Stochastic analysis we are doubling on trading accuracy... However, one should remember that with each new Forex tool added complexity can appear; and a very complex approach is not always good.

Strategy Requirements:

Currency pairs: ANY

Time frame chart: 1 hour, 1 day

Indicators: Full Stochastic (21, 9, 9) and Full Stochastic (9, 3, 3).

Entry rules: When the Stochastic (21, 9, 9) lines’ crossover appears – enter (or wait for the current price bar to close and then enter). It will be the major trend. 

Look at Stochastic (9, 3, 3) to anticipate swings inside the main trend and re-enter+ the market again – additional entries. Also ignore the short-term moves Stochastic (9, 3, 3) that signal for exit – do not exit early until Stochastic (21, 9, 9) gives a clear signal to do so.

Exit rules: at the next cross of major Stochastic (21, 9, 9) lines.

Advantages: using two Stochastic indicators helps to see the major trend and the swings inside it. This gives more accurate entry ruless and gives a good exit rules.

Disadvantages: needs constant monitoring, and again we are dealing with a lagging indicator.

Source: forex-strategies-revealed

forex trading drawdown

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The Stupid Guy Strategy ~ forex trading daily charts

4:41 AM in double, Forex, guy, stochastic, strategy, stupid, the

Pair : EUR/USD only

Time Frame : 15 Minute Only

Zoom out to 50 or 75 percent to see the magic.

And the secret is... MACD!

Set it to 35 45 30.

The Rule is, ENTRY WHEN CROSSING. ITS so simple!!

Patient is the key, and you may sometimes checkout the Histogram Divergence to spot next cross. Dont forget to set trailing stop (SL+), Avoid News, Cut Loss when MACD cross again (almost never happen)

Source: forex-strategies-revealed

forex trading daily charts

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Simple MACD Crossover Strategy ~ forex trading do's and don'ts

12:27 AM in cossover, crossover, Forex, lines, macd, simple, stochastic, strategy

Trading with MACD indicator is widely used by Forex traders.

Lets take a glance at the very basis of currencies trading with MACD indicator.

We will need only MACD indicator with standard settings: 12, 26, 9.

Any time frame as well as any currency pair can be used.

Entry rules: When the MACD lines’ crossover appears – enter (or wait for the price bar to close and then enter).

Exit rules: when MACD lines next crossover occurs.

Advantages: very simple approach and can give good profitable entries. Traders may want to change MACD default settings depending on the currency and chosen time frame. For example, traders may test next MACD set ups: 

USD/CHF MACD (04, 07, 16), EUR/USD MACD (02, 03, 20), GBP/USD MACD (02, 03, 04) for different time frames.

Disadvantages: you will need to sit and monitor it again and again. MACD has little use in sideways trading market. It is also never used alone, but rather in combination with other indicators.

Source: forex-strategies-revealed

forex trading do's and don'ts

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