328# 5 min Stochastic Scalping System

Stochastic trading method

Submit by MJ 25/04/2013

 

This is very profitable scalping system where you don’t have to

think at all. This is strategy is a Stochastic Trading Method MTF forscalping in tyhe forex markets.

Currency Pairs: EUR/USD and GBP/USD

Indicator:

the Stochastic Indicator will do it for you.

Timeframe: 5min chart

Indicator: Stochastic – parameters 13/8

Trade:

  1. Open 15 or 30 min chart and determinate the current trend.

  2. If trend is up – use long (buy) trades only. Let’s say the

current trend is up and the price has been up. Then the

market pulls back – the stochastic indicator crosses down

too. No Entry here (current trend is UP).

 

3. Once the price bounces the bottom (support) and goes up

again – wait till stochastic crosses and place “buy” order (go

long..)

4. Always place a stop loss 2 pips below the stochastic

crosses... Target 5-10 pips profit.

5. The opposite rules if the trend is down.

 


 

In the pictures below 5 min Stochastic Scalping Systemin action.

 

 

Share your opinion, can help everyone to understand the forex strategy.

Comments: 2
  • #2

    Rafi (Tuesday, 29 August 2017 07:43)

    Indicator: Stochastic – parameters 13/8 means
    %K period= 13
    %D period= 8 or ?
    Slowing= 3 or ?
    What is the right parmeters

  • #1

    idgwil (Thursday, 08 January 2015 08:59)

    thanks a lot MJ.. I can see once you have a trend to trade into it works

Stochastic Scalping System