Forex trading system for the stochastic and moving average - a fairly safe strategy for trading in financial markets, which is based on a standard indicator stochastic oscillator (Stochastic Oscillator) in combination with standard exponential moving averages (Exponential Moving Averages). You can use moving averages as an indicator of long-term trend, while stochastics will show you a short-term overbought / oversold conditions, where you can successfully enter the market pullback.
Bearish trend:
In the graphs we can see an example of the signals for 14th December 2009, generated for the downtrend in EUR / AUD and bullish on AUD / CHF. As you can see, the line which is used to signal that it is the stochastic line, rather than its average. Exponential moving averages should be almost perfect trend for a more accurate signals. In the example, both a short position reaches deal fairly optimistic goals. In the example, a long position second transaction closes with virtually no loss if you use a small trailing stop.
Attention!
Use this strategy at your own risk. EarnForex.com not responsible for any damages that may result to you when using any strategy presented on the site. It is not recommended to use this strategy on a real account without testing it to start a demo account.
Features
- Fairly reliable.
- Trade with the trend.
- Not very easy to follow this strategy.
Preparations for the trade
- Any currency pair. Use D1 timeframe to determine the long-term trend using exponential moving averages and H1 timeframe for short-term signals from the stochastic oscillator.
- Add 3 exponential moving averages on the chart D1, set periods of 50, 100 and 200.
- Add the indicator Stochastic Oscillator on the graph H1, setting the period% K 14% D between 3 and deceleration (slowing) 3, using price levels Close / Close, set the level to 90% overbought and oversold level - 10%.
Conditions of entry
- Enter a long position when the long-term trend is up (Graph D1 shows the price of EMA50, EMA50 EMA100 over and over EMA100 EMA200), and the stochastic crosses below the oversold level on the graph H1.
- Enter a short position when the long-term trend is downward (Figure D1 shows the price under EMA50, EMA50 under EMA100 and EMA100 under EMA200), and the stochastic crosses overbought level above the graph H1.
Conditions of Release
- No specific levels of stop-loss or take profit, but the recommended ratio of risk to reward ratio - 1:2.
- Maintain a fairly narrow trailing stop.
Bearish trend:
Bullish trend:
In the graphs we can see an example of the signals for 14th December 2009, generated for the downtrend in EUR / AUD and bullish on AUD / CHF. As you can see, the line which is used to signal that it is the stochastic line, rather than its average. Exponential moving averages should be almost perfect trend for a more accurate signals. In the example, both a short position reaches deal fairly optimistic goals. In the example, a long position second transaction closes with virtually no loss if you use a small trailing stop.
Attention!
Use this strategy at your own risk. EarnForex.com not responsible for any damages that may result to you when using any strategy presented on the site. It is not recommended to use this strategy on a real account without testing it to start a demo account.
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