Trading strategy with stochastic oscillator

Forex Trading Strategy with a stochastic oscillator - an interesting system with a fairly low level of losses. It is based on a standard indicator stochastic oscillator (Stochastic Oscillator), which shows the fatigue trends and their change. This means that you will almost always be able to enter the market on pullbacks, getting an opportunity to exhibit relatively safe stop-loss.

Features

• It is easy to follow.
• Uses only one standard indicator.
• Safe levels of stop-loss.
• Non-optimal levels of TP.

Preparations for the trade

1. Any currency pair and timeframe, but recommended longer-term timeframes.
2. Add the indicator Stochastic Oscillator on the chart by selecting the period% K 14% D between 7 and deceleration (slowing) 7 using a simple moving average method (Simple MA method).

Conditions of entry

• Enter a long position when the line crosses the red turquoise bottom and they both will be located in the lower half of the indicator.
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• Enter a short position when the line crosses the red turquoise top and they both will be located in the upper half of the indicator.

Conditions of Release

• Set stop loss at a local maximum (for long positions) or a local minimum (for short).
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• Take-profit, set in a range from 1 to 1.5 stop-loss.
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• Close the position, if you receive a new signal.

Example

Five signals from this strategy can be seen in the example above. All stop-loss levels are marked on the chart horizontal yellow line. The first signal is given to opening a short position with a close stop-loss, take profit is achieved. The second signal-bull, is not real setback, but, fortunately, the stop-loss order is placed very close. The third signal is not a real signal, since it is a bearish figure, but it appears at the bottom of the window indikatorskogo, so I just do not pay attention to him. The fourth signal - a bull, with a fairly remote stop-loss, but even the most aggressive profit target can work here. The last signal - by a short position with close stop-loss and wide scope for profitable take profit.

Ideally, the bullish and bearish signals must follow one after the other, but because of the appearance of false signals (bearish at the bottom of the screen and a bull - at the top), it is not always the case.

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.