Most professionals and bank traders use stochastics, the free platform indicator.Here is a back test.It does a better job than all the indicators out there, 5,000 of them on mt4.This is EA automated test using stochastics.
Forum on trading, automated trading systems and testing trading strategies
Sergey Golubev, 2013.06.11 17:34
mainly not. it is something related to the settings of Stochastic for example.
1. First case (slow stoch) - it was explained: slow stoch (main line) on bar #1 is below 20
2. Second case - to be explained - fast stoch on bar #1 is below 50
3. 3rd case
3.1. medium stoch on bar #2 is below 20
3.2. medium stoch on bar #1 is above 20
3.3. medium stoch main line on bar #1 is above medium stoch signal line on same bar #1
3.4. medium stoch main line on bar 2 < medium stoch main line bar #1
Sergey Golubev, 2013.06.03 19:07
For now - we can describe the trading rules for those 3 Stochastic indicators:
Sergey Golubev, 2013.06.03 19:17
So, rules for buy:
And opposite for sell.
For the next few posts - we will descuss about how to trade this setup (or how to use it), and what those rules mean.
Thus, the most usual rules/signals (most usually used) for this indicator are the following:
- main line of indicator is above or below some level indicating overbough/oversold
- main and signal lines are started to move to our direction
- main line of indicator is above or below 50
and finally -
The stochastics indicator is also a price action indicator.It is compared to the price indicator,. Stochastic is used by professionals and bank traders.They use it on daily and 4 hour charts.There are less false signals on 28/6/10 settings
Please take this free knowledge and wisdom from the thread, to improve your trading.
The technical analysis is already available on the free charts .The stochastic indicator is already doing the price action analysis on most trader's charts.This eliminates the need for price action candle by candle,analysis for longer term swing traders and trend traders.
Get a coder to code an an EA to test indicators and test them out.Some eas only cost $50 to have them coded.
I prefer to use this , it is very simple and reliable and free.
Here is the secret
Stochastics is doing a better job than moving averages etc.The minute one starts mixing with other indicators, moving averages , it means all other signals are destroying the benefits of the professional indicator called stochastics.All the good signals are getting killed by all the other 5,000 free indicators.
Here is result.
This is the power of the stochastics on it's own.No need for anything else.
Try with spread 20 (because its points, not pips) and come again.