Forum transfer: Submitted by Nagendra Rai on October 21, 2008 - 11:52.
Hi,
This is the basics of stochastic trading with multiple time frames and moving averages. This system alone will provide a very high win percentage with low pips. This system is best traded aiming for 7-20+ pips and locking in profit when it comes.
RED Moving Average = 125 Close Exponential, 130, 135 to 200 C E
Green Moving Average = 70 Close Exponential to 120 C E
Stochastic Settings: 5, 3, 3 and 14, 3, 3 (high/low, simple) ....use only %K line and overlay in one indicator window.
MACD: The default settings are 5,35,5
Trading Time Frame is 5 Min.
Long Entry: The green lines must be above the red lines in all time frames from 5 Min to 4 Hour. Green and Red lines must agree and head north. All the lines must be going in the same direction.
Stochastic: Stochastic lines must cross the 20 or 23.6 from below and head up
MACD: This is important. When you get the signal MACD must be above 0
Short Entry: The green lines must be below the red lines in all time frames from 5 Min to 4 Hour. Green and Red lines must agree and head south. All the lines must be going in the same direction.
Stochastic: Stochastic line must cross the 80 or 76.3 from above and head down
MACD: This is important. When you get the signal MACD must be below 0
For more details please find the below attachment.
Thank You,
Nagendra Rai