77# Stochastic with fast Ema's Trading System

Submit by Joy22 07/02/2012

 

Time Frame: DAILY

Currency Pairs: Any Currency Pair

INDICATORS:

  1. Stochastic (5,3,3)

  2. 2 Days exponential moving average (3EMA open)

  3. 4 Days exponential moving average (6EMA close)

Long Entry:

  • For any currency pair, open the daily chart.

  • Put a 3 day and 6 day exponential moving averages on the daily chart.

  • Put a Stochastic (5, 3, 3) indicator on the chart. Use the levels 20, 50 and 80.

  •  The stochastic(5,3,3) should be above 50 line. When the 3EMA crosses the 6EMA from downside to upside, enter a long trade.

Stop Loss For Long Entry:

  • Use a stop loss of around 10 pips below the entry day candlestick.


Take Profit For the Long Entry:

  • Exit the long trade when the stochastic (5, 3, 3) reaches the overbought region that is above 80 line.

  • Exit the long trade if the 3 EMA crosses the 6EMA from upside to downside.

  • Exit the long trade if the fast moving stochastic crosses the sow moving stochastic downwards from upside.

Example:

The following is the daily chart of USD/CHF.  I have drawn a vertical line where the 3EMA crossed the 6 EMA upside. This is an entry point for a long trade


 

In the pictures below Stochastic with fast Ema's Trading System in action.

Short Entry:

  • For any currency pair, open the daily chart.

  • Put a 3day and 46day exponential moving averages on the daily chart.

  • Put a Stochastic (5,3,3) indicator on the chart. Use the levels 20, 50 and 80.

  • For a short entry, the stochastic(5,3,3) should be below 50 line. When the 3EMA crosses the 6EMA from upside to downside, enter a short trade.

Stop Loss For Short Entry:

  • Use a stop loss of around 10 pips above the entry day candlestick.

Take Profit For the Short Entry:

  • Exit the short trade when the stochastic (5,3,3) reaches the oversold region that is blow 20 line.

  • Exit the short trade if the 3 EMA crosses the 6EMA from downside to upside.

  • Exit the short trade if the fast moving stochastic crosses the sow moving stochastic upwards from downside.

Example:

The following is the daily chart of . I have drawn a vertical line where the 3 EMA crossed the 6 EMA downside. This is our entry point for a short trade.

 

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