Hi, I'm a newbie and this is my first post on this site. Started live trading this year and like a lot of you am still looking for the "Holy Grail".
I like to keep it as simple as possible and like MA's, stochastics and fib (but it requires a lot of practice to perfect fib trading).
After watching a video of what the site called "stochastic pop" I found it to be so profitable and reliable that I wonder why a lot more is not made of it and would like to know if anyone else uses it. I have investigated it for a while now and would like to make it my primary trading system.
Basically the theory is, in a bullish market when the fast stochastic crosses above the 80 line go long, and in a bearish market when the fast stochastic crosses below the 20 line go short.
I realise this is the often recommended exit to a trade but after backtesting and observation of price action I have found that the markets move a lot when the stochastics reach the limits of their range. eSignal includes an additional indicator when this occurs and it is known as the False Bar Stochastic.
In the attached screenshot, entry to the trade would be confirmed by the 5SMA moving away from the 20SMA. Simple trading and seemingly reliable. I use a fairly tight SL but the payoffs more than make up for the losses.
Is this used by any traders on this site, and if so, are you successful with it? If anyone has the ability to either program an EA or simply an alert system for the 2 conditions I know I would find it helpful.
As I said, I am a newbie with a constantly draining micro account, so if this is an accepted strategy that has been perfectly elsewhere I would welcome comments.
Happy hunting... and good trading in the new year.