Forex strategies revealed | FSR Forum

Hello all,

I am considering trading on daily charts. For this purpose i am planning to use Stochastics Oscillator(default settings) for entry signals and ADX(default settings) for trend confirmation. Is it correct to use these indicator for the above purpose? If not can you suggest any alternative?

Your inputs much appreciated
Thanking you

musshan wrote:Hello all,

I am considering trading on daily charts. For this purpose i am planning to use Stochastics Oscillator(default settings) for entry signals and ADX(default settings) for trend confirmation. Is it correct to use these indicator for the above purpose? If not can you suggest any alternative?

Your inputs much appreciated
Thanking you

I dont have any idea,

But as i know ADX we used for looking a Trend as a confirmation indicators such Aroon, Choppiness Index, etc, but Stochastic its for Ranging Market BTW; Yes We can trade Stochastic as a Trend Trading Sytem too e.q. The Pairs has strong trending Up, ADX above level 20 , now we can enter LONG if Stochastic is Oversold & allready "Hinge" to BUY formation. BUT you now must have at least 1 Indicator for confirmation that Trend is Bull or Bearish (Such EMA 21, or EMA 50, EMA 200, etc).

Speak about Stochastic, please read this report :

Code: Select all

http://www.easy-share.com/1907870066/LANE Stochastics.rar

In This report They said the best signal from Stochastic is a Bull/Bear Divergence by %D.


Sincerly;





Manus168

Yes, that's a working idea.

ADX suggests about presence/absence of a trend.
Stochastic crossover is used to pick correct retracements.
I'd add 9 EMA method to pinpoint the entry.

It'll all look the following way:

Manus168,

thanks a lot for Stoch pdf.
I've made some useful notes for myself, really useful reading.

Regards,
Edward

musshan wrote:I am considering trading on daily charts. For this purpose i am planning to use Stochastics Oscillator..........
Is it correct to use these indicator for the above purpose?
If not can you suggest any alternative?

Why not use a couple of tried & tested strategies highlighted on the contents section of the Forex Strategies Revealed page?

These 2 should stand you in good stead & are as good as anything else out there:
http://forex-strategies-revealed.com/tr ... rategy-5x5
http://forex-strategies-revealed.com/ad ... stochastic

The 2nd strategy includes a stochastic confirmer.

The less complicated your method the better. If you load too much onto your charts you’re simply going to suffer from ‘analysis paralysis’.

I’ve loaded up the simple combination of indicators mentioned in the prior post onto this weeks EURUSD chart.
5 & 100 SMA (I prefer the 100 to the 150)
RSI 3
Stochastics 6.3.3

This pair is still in bullish mode. Price is trending above the 100 SMA on the Daily chart & so it would be more prudent to be looking for pullbacks to the 20 levels on the RSI & Stochastics to indicate a potential continuation buy signal.

In this instance, price triggers a long trade as the 5 SMA is once again breached at approx 1.4600.



If you wish, & you have time, you can scroll down into a 15 minute chart to get a tighter entry.

By configuring a similar price confirmer on this timeframe, the 6.3.3 Stochastic, you simply wait until the indicator is hooking up underneath 20 & enter a long trade in tandem with the Daily chart trigger.

Using this dual timeframe confirmer can often get you in & out of trades at optimum levels, thus assisting in managing your risk a little more efficiently. You can also take further continuation trades on the smaller timeframe charts, knowing you’re triggering your entries in line with the current trend.

I guess we can now simply put a link here:
combination-strategies-t140.html

Edward Revy wrote:Manus168,

thanks a lot for Stoch pdf.
I've made some useful notes for myself, really useful reading.

Regards,
Edward

You're welcome Bro ...


Best Regards;





Manus168

The less complicated your method the better. If you load too much onto your charts you’re simply going to suffer from ‘analysis paralysis’.

I agree 100% for this comment !


Kind regards;





Manus168