43# Stochastic Trading Method II “ Escalator II ”
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Stochastic Settings: 5,3,3 and 14,3,3 (high/low, simple) ....use only %K line and overlay in one indicator window.
Direction: 4H crossing 20 from below 20 trade long, crossing 80 from above 80 trade short
Time Frames: 15, 30, 1H and 4H
Long Entry – enter when 15M, 30M, 1H and 4H stochastics are moving up all above 20
Short Entry– enter when 15M, 30M, 1H, 4H stochastics are moving down all below 80
The 4H is your signal indicator...it is the "make a trade" sign. Now you can trade any of the 15/30/1H/4H time frames or combination thereof depending on your risk level.
Best entry in a smaller time frame will be when that small time frame (on a long) crosses 20 or just has prior to the 4H indication. Your exit on the long will be when a time frame (15/30/1H/4H) hits 80 (long). You can enter on any time frame after the 4H signal (in the direction of the 4H move).
Long– exitwhen stochastics on the 15M hits 80, or the 30M hits 80, or the 1H hits 80, or the 4H hits 80
Short– exitwhen stochastics on the 15M hits 20, or the 30M hits 20, or the 1H hits 20, or the 4H hits 20
The smaller time frames will hit the exit target more often but you make less pips than the longer time frame exits....you can pick any time frame to exit on.
Spud Escaltor Stochastic Template
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