Trend is friend. This is a trend following strategy. To stay with the trend is very profitable. In this strategy Stochastic Oscillator has been used for confirmation for taking any entry. This is low risk trading strategy as this strategy is based on market trend. For trendy market, you can gain huge pips from this strategy. This is easy to follow. New comers can also apply this strategy for taking any entry with the trend.
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(1) Stochastic Oscillator Indicator.
How to get buy signal
You will get buy signal in the uptrend market. You have to draw a trend line like as below image. When price comes down to retest the trend line, you need to look at Stochastic Oscillator at that time. If this indicator makes crossover at oversold area near to 20 level, then it confirms buy signal. Then you can take buy entry.
How to get Sell signal
You have to draw a down trend line in the downtrend market like as below image. When market price moves up to retest the down trend line, you have to check Stochastic Oscillator at that time. If this indicator makes crossover at overbought area near to 80 level, then it confirms sell signal. Then you can take sell entry.
Time frame: H1, H4, Daily
Currency pairs: All pairs.
Take profit and Stop loss: Take profit should be 50-80 pips. You can close your buy trade manually when stochastic comes to overbought area. Similarly, you can close your sell entry when stochastic downs to oversold area.
You can set 30 pips stop loss for every entry. You can cut your loss when trend line will be broken.
Risk warning: This is based on trend line trading system, so you need to follow this strategy only on trendy market. Do not use this on ranging market. You need to follow money management theory for applying this strategy. You need to use this strategy on your demo account before using this strategy on your real account.