Forex strategies which adopt a Stochastic indicator for monitoring the price provide some lovely tips about the situation on the market for traders that are willing to see it. The FX indicator Full Stochastic (14, 3, 3) can be used with any funds pair and any Time frame. However we recommend it to be used combined with other indicators for better results.
Entry rules: When Stochastic has crossed below 20, reached 10, & then crossed back up through 20 – set BUY order.
Entry rules: Sell when Stochastic has crossed above 80, reached 90, & then crossed back down through 80.
Exit rules: close trade when Stochastic lines rich the opposite side (80 for Buy order, 20 for Sell order).
Disadvantages: needs periodical monitoring. Stochastic is suggested to be used along with other indicators to eliminated entering on false signals.
Advantages: gives accurate entry/exit signals in well trending market.
Stochastic High-Low FX Strategy
