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 if this script is already available in the arsenal of the trading platform provided by the broker.

Stages of using the Stochastic strategy.

1. Installation and configuration of the indicator, if desired, you can only change the visual display of the lines of the oscillator’s operation, as in my version I changed the color of the main line to green, all other settings remained unchanged.

2. Choosing the right moment to open transactions - one of the prerequisites is a minimum of signal line reversals outside the overbought or oversold zones, but if the signal lines often turn between the boundaries of 20 and 80, then it is better to change the currency pair or come to trade at the next Forex session.

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

3. Determination of the main trend - carried out according to a simple scheme, if you trade on M15, then we clarify the direction of price movement on M30 and H1.

This will be an additional guideline for you when opening trades. 4. Confirmation of the reversal - we determine it on lower time intervals, for M15 these are M5 and M1.

It is on M1 that the first candles will appear confirming that a reversal has occurred and a deal can be opened. 5. Closing a position - as a rule, all Forex positions are closed if a signal appears to open a transaction in the opposite direction, the stochastic strategy is no exception. If you have opened a sell trade, the signal to complete it will be the appearance of a signal to open a buy trade.

Signals to enter the market.

Everything here is still quite simple, the strongest signals are:

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

Sell ​​– the main line (in our version, green) crosses the red one from top to bottom in the overbought zone, which is located between parameters 80 and 100. In this case, both lines should move in a downward direction.

The basis of trading using the stochastic strategy is the presence of confirming factors, which can be a candlestick combination or the readings of an additional forex indicator . Filtering out false signals is the key to the success of this trading option.