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.
Trading Setup
Currency pair: Any.
Time frame: Any.
Indicator: Full Stochastic (14, 3, 3)
Entry Rules:
Buy when Stochastic has crossed below 20, reached 10, and then crossed back up through 20.
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.
Happy Trading!
Trading Setup
Currency pair: Any.
Time frame: Any.
Indicator: Full Stochastic (14, 3, 3)
Entry Rules:
Buy when Stochastic has crossed below 20, reached 10, and then crossed back up through 20.
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.
Happy Trading!
