255# How to Trade with DonForex Perfect Zones, Stochastic and RSX

Dimitri 2025

This strategy combines support/resistance zones with oscillator timing to catch high-probability reversals or continuations

DonForex PerfectZones (Support & Resistance zones on main chart)

Stochastic Oscillator (85,15,5)

RSX (13)

Identify Key Zones
- Use the DonForex PerfectZones indicator to locate major support and resistance areas.
  
  Only look for long setups at support zones and short setups at resistance zones.
Stochastic Confirmation
- For long entries: Wait for the Stochastic to be in the oversold area (below 20, green background turning up) and for the blue line to cross above the red line.
  
  For short entries: Wait for the Stochastic to be in the overbought area (above 80, red/pink background turning down) and for the blue line to cross below the red line.
RSX Confirmation
- For long entries: RSX histogram should turn green and slope upwards, confirming bullish momentum.
  
  For short entries: RSX histogram should turn red and slope downwards, confirming bearish momentum.

Take Profit (TP):
- Set TP at the next DonForex PerfectZone level (nearest resistance for longs, nearest support for shorts).
  
  Alternatively, use a fixed target of 20–30 pips on M15.
Stop Loss (SL):
- Place SL just below the support zone for longs.
  
  Place SL just above the resistance zone for shorts.
Trailing Stop (Optional):
- Move SL to breakeven once price reaches +15 pips in profit.
  
  Trail below swing lows for longs / above swing highs for shorts.

Avoid trading when both Stochastic and RSX are flat (sideways market).

Strong setups occur when all three conditions align: price at zone, Stochastic signal, RSX confirmation.

Use proper risk management (risk max 1–2% per trade).

Price Action & Zone
- Price retraced into a DonForex PerfectZone support around 0.9150–0.9160 (see gray support zone on the chart).
  
  This level held multiple times (several bounces marked with circles).
Stochastic Confirmation
- Around 29 Sep, 11:00–11:30, the Stochastic was in the oversold zone (below 20, in the pink/red background).
  
  The blue line crossed above the red line, signaling bullish reversal momentum.
RSX Confirmation
- At the same time, the RSX histogram switched from red to green and started pointing upward, confirming buying pressure.
Entry
- Entered a long trade around 0.9165–0.9170 after all confirmations aligned.
Stop Loss (SL)
- Placed SL just below the support zone at 0.9145 (≈20–25 pips risk).
Take Profit (TP)
- First TP target was the next resistance zone at 0.9210–0.9220.
  
  This zone was hit successfully later on 30 Sep, giving around +40–50 pips profit.
Trade Management
- Once the trade moved +15 to +20 pips in profit, SL was moved to breakeven to protect capital.
  
  Could also trail stop under higher lows as the uptrend continued.