i am using this.when stochastic lines cross and if the next candlestick breaks the low of the previous one,i got short.
is it any good?
maybe its a very common method but i am new to 4x hence asking.
your views are appreciated.
Entry on a breakout using that method can be as valid as any.
BUT, you have an entry, now what?
Where is the rest of your trade plan?
i. e. Money management… Stop loss… Exit options…
There’s more to this than just picking a winning horse, the real trick is how you ride it;)
yes i am compltely confused about targets and stoploss.
i couldnt figure out any indications on charts for that.
also,when i use the same stratgey in reverse manner for going long the failure rate is higher than while going short.
here is another example:
btw is this a common strategy.
whats ur opinion about it?
any good?
Indicators such as fibonacci and PSAR can help with figuring out stops and targets, but I think the best way to to look at good points to put a stop and then go for at least that for a target.
Your strategy seems like you will get many fakeouts. Perhaps you should only apply it when the direction of the cross is in the same direction of the trend (last 30-50 candles or so) for that time frame. You will reduce fakeouts by only trading with the trend which is adviseable.
many times this crossing fo stochastic lines indicates short term trend reversal.
so how can i look at past candles determine?
not arguing just asking.
Well you haven’t specified what timeframe you are using so “short-term” can mean anything.
If you are using a 15m chart, then lots will agree it is “short-term” and anything greater than H1 is “long-term.” So you can change the short term and long term by just changing your periodicity.
So what I’m suggesting is to use something like a 15m chart and do you strategy, but look at past history on that 15m-chart to see the long term trend and wait for crosses in that direction. Similarly, you can do that for long-term. Also, you could even see what the direction of the trend is long-term, and then trade that on your short term (like the cowabunga method does).
yes i use 15m chart.
so what u mean is study such past occurences for that pair and take cues from that too?
I wouldn’t advise trading short time frames. That’s my 2 cents.
just a heads up,initiated 2 trades using this tecnique:
bought eur/gbp
and shorted nzd/usd
total profit of around 11 pips.
not much but still something.
do that every day and it sure will be something