6960+ Pips Profit!

We've got in a year 2017
Free FOREX Signals
 

Forex Broker AVA Trade

Relaible partner for Traders.
Start trading now!

 

Forex Brokers Rating

Only best Brokers on our website
with honest Rank!

FOREX Advertising

On LiNSTR.com

Forex strategy "Stochastic lines crossover"

Here is a very basic overview of a role of a Stochastic indicator in the Forex trading. Knowing exactly what to expect from Stochastic, if you ever plan to add it to your own system, will affect trading results dramatically. For this trading method:

Currency pair: Any.
Time frame: Any.
Indicator: Stochastic (14, 3, 3)

Entry rules: Buy when the faster moving Stochastic line crosses above and up over slower moving stochastic line.

Exit rules: Sell when the opposite situation (next crossover) occurs and right after that open an opposite position. It is again recommended, once the first touch of Stochastic lines (possible future crossover) has been spotted, to wait until the following price bar on the chart has closed and only then take actions.

Advantages: can give entry and exit rules, easy to use.

Disadvantages: Stochastic is a lagging indicator – with this lines crossover system it can create a lot of false signals. Traders may want to change Stochastic regular settings for each particular currency pair to eliminate as many false signals as possible. Stochastic crossover system is good when used in combination with other indicators.

 

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. 

 

Fell free to contact us with 
admin@linstr.com

FOREX Advertising

 

 
© 2009-2016
LiNSTR.com