Stochastic strategy.

This trading option is completely universal; it can be used on any time frames and currencies; the size of the deposit also does not matter much.

The only condition is the presence of a completely dynamic trend in the Forex market and the absence of uncertainty in its movement.

The Stochastic strategy is highly effective and at the same time does not require high preparation from the trader.

To get started, you just need to install the stochastic indicator , but first check to see if this script is already included in the trading platform provided by your broker.

Stages of using the Stochastic strategy.

1. Installing and configuring the indicator. If desired, you can change only the visual display of the oscillator's operating lines. In my example, I changed the color of the main line to green, leaving all other settings unchanged.

2. Choosing the right moment to open trades – one of the mandatory conditions is a minimum of signal line reversals outside the overbought or oversold zones. If signal lines frequently reverse between the 20 and 80 boundaries, it's better to change the currency pair or trade at the next Forex session.

The more predictable the stochastic indicator's movements, the higher your chances of success.

3. Determining the main trend – this is done using a simple formula: if you're trading on the M15 timeframe, we'll check the price movement on the M30 and H1 timeframes. This will serve as an additional reference point when opening trades.

4. Reversal confirmation – we'll determine this on shorter timeframes; for the M15, these are the M5 and M1 timeframes. It's on the M1 timeframe that the first candles will appear, confirming that a reversal has occurred and that a trade can be opened.

5. Closing a position – as a rule, all Forex positions are closed when a signal appears to open a trade in the opposite direction, and the stochastic strategy is no exception. If you've opened a sell trade, the signal to close it will be the appearance of a buy signal.

Signals to enter the market.

Here, everything is quite simple; the strongest signals are:

Buy – the main line crosses the signal line (red) in the oversold zone from 0 to 20 and begins to move upward.

Sell – the main line (in our example, green) crosses the red line from top to bottom in the overbought zone, which is located between 80 and 100. Both lines should move downward.

The basis of trading with the Stochastic strategy is the presence of confirming factors, which can be a candlestick pattern or the readings of an additional Forex indicator . Filtering out false signals is the key to the success of this trading method.