Based on the Stochastic
When Stochastic is above its moving average, it signals an uptrend, in this case we open only long positions, sell signals should be ignored. When it is below its moving average, it signals a down trend, in this case we open short position, buy signals should be ignored.
Now in order to identify the entry point, we apply the awesome oscillator. The Awesome Oscillator gives a buy or sell signal called a Saucer. You’ll see a red bar after two green bars or a red bar after two green bars. This is the trend reverse signal.
How to Trade on Stochastic;VIDEO and Picture illustration- you can learn how to install the indicators.
At this point we need to identify when to close the deal. We will make use of the Fractal in this case. We place the stop loss at the level of the last fractal. We close the deal if we receive the entry signal in the opposite direction.
You need to watch the video or use the image description from the link above to be able to use this strategy effectively.
Check out some profits I have made using this system for a few days.
The stochastic momentum indicator is used by many traders in the forex to rightly identify potential trend reversals. This indicator helps us with an idea of momentum ( in forex momentum is the rate of change of prices, so the faster the prices, the faster the momentum, and the slower the change in prices the slower the momentum) which compares the closing price to the trading range over a period of time on your chart. One thing I really like about the stochastic oscillator is that it is really helpful in determining overbought or oversold conditions. It ranges from 0 to 100, the stochastic oscillator shows that the currency pair has been overbought when the readings are over 80 and then when readings come below 20, we have an oversold condition. In my strategy, I will look for a currency pair say the USDJPY facing a long bullish trend, and very well my USDJPY has already been in the overbought ( more traders buying than selling) territory, with price closing close to a past area of resistance. Now the moment my stochastic oscillator crosses down through the signal line, I will be expecting prices to do the same. Though these combined signals tell you that a possible change in the trend is a out to change so you could map out your entry and exit points. I kind of enjoy the stochastic with candlestick charting techniques which I learnt from https://www.mql5.com/go?link=https://www.profiforex.com/education/professional/ . I don't know if I would have been this good withoutl me learning from there.