Stochastic Forex Trading Strategy

Trend Following Stochastic Forex Trading Strategy
Forex Trend Following Strategies The trend following stochastic forex trading strategy is an easy to understand yet profitable strategy to trade currencies. The only tools we need in order to apply this method is the stochastic indicator, ATR(14) and trend lines. Forex Chart Setup Preferred Time Frame's: 30 min and above Trading Indicators: Stochastic Oscillator (5,3,3) and Average True Range ATR(14) Recommended Trading Sessions: Any Currency Pairs: Any Rules for a Long Trade 1. Find an up trending market and draw a rising trend line connecting the successive temporary support bottoms. 2. Wait for the price to pullback towards the rising trend line.Go long in the vicinity of the rising trend line if the Stochastic Oscillator turns positive from oversold market conditions. 3. Place stop 3 pips below the most recent level of support. Trade objective: 50% of 14 day average true range (ATR)

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Wait for the price to rally towards the falling trend line. The price pulls back towards the rising trend line while the Stochastic Oscillator turns positive from oversold market readings (below 20).com . www. Rules for a Short Trade 1. 2. We open a long buy at 1. 4. 3.5590 with stop 3 pips below the most recent level of support at 1. Our trade objective is 50% of ATR which is 75 pips. Place stop 3 pips above the most recent level of resistance. The trade was closed about 4 candlesticks later at 1.Stochastic Forex Trading Strategy Trading example (GBP/USD 1 Hour Chart) The gbp/usd is in an up trend supported by the rising trend line. Trade objective: 50% of 14 day average true range (ATR).5590. Find a down trending market and draw a falling trend line connecting the successive temporary resistance tops. 5690 for 75 pips while the risk was only 25 pips (+ spread).downloadfreeforexebooks. Go short in the vicinity of the falling trend line if the Stochastic Oscillator turns negative from overbought market conditions.

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