Not a short position yet for NZDUSD and NZD JPY? It will definitely be a bearish reversal there, but where is the point where you will go short for these pairs?
Based on my strategy, I would not short either NZDUSD nor NZDJPY yet. Stochastics is not where I need them to be
Hi,
I thought you already shorted NZDJPY?
You even sent a screenshot with a position open.
Yes I sold Nzdjpy!
That was based on stochastics and ROC from yesterday. Today’s chart right now is not optimal for entry.
EURAUD is starting to look good right now. ROC is already at +1.30%. Just waiting for stochs to reach at least 98 to signal entry.
Understood, thank you.
It looks like the EUR pairs are starting to show potential as their stochs are already above the 95 upper level. I have opened a sell position for both EURCAD and EURUSD (only on my demo account), as I wanted to see how it would perform if I used just stochastics and not use ROC as a second indicator.
Hi @forexseer, I have been following your strategy demonstrated in this thread. Using a tight Stochastic like the RSI or even the CCI to signal trade entries on small trend exhaustions or reversals… which is an interesting concept.
As shown in yellow on the NZDJPY… it also has some of the RSI’s negative attributes of price action playing games with the popular Indicators…
Using the strategy across the Daily time frames should improve your results as a whole… and doubling of a hedged position to “washout” losing trades is intriguing… brave… but impressive. This concept alone will have many in BP rushing to break the glass and grab the axe…
The Stochastic (set to a tight 5,1,1) or most Oscillators hitting the edge of their bounded limits, usually indicates that price is generating a call to action… generating an entry / exit signal, generating a profit, generating a loss… Another option would be to place a pending order say 20 pips either side of the signal price level and lower the risk of having a doubled position reversing on you…
Just my 2 cents… Will continue to follow… Cheers
@Trendswithbenefits I have also experimented with fast RSI (Period: 2) and notice that it does give almost identical signal to stochastics. One thing that quite a few traders do not seem to understand is what the “period” relates to, in the indicators that they use. So they just set it at default (usually at 14) and go with it. Period relates to the time period of your chart, meaning, if I am trading the daily time frame and have set my stochastics period at 5, it means it is looking at the previous 5 days or 5 daily candlesticks. Having set the stochastics upper and lower level at 98/2 means that when the price reaches it, a new high or low has been established, since current high/low for period 5 is only at the 90/10 level. This makes sense (for me) since it means a new weekly high/low has been reached and is most probably ready for a reversal.
Adding Rate of Change (ROC) with Stochastics makes the most sense for me since ROC shows how much a pair has moved in relation to the previous period. This means that at ±1.0% it means that the price has moved equal to the previous period’s movement. Waiting for a pair’s ROC to go beyond ±1.0% to as much as ±1.50% means that the day’s movement is already 50% more (±1.0% means the current movement is already equal to the previous day’s movement, either negative or positive) than the previous day and might be another signal for a reversal.
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I have never really used the ROC Indicator as a confirmation, so I’ll go away and have a read…
I also program in C# for Ctrader and have a Bot very similar to the strategy you are using… the Rumi Bot name is familiar to me… Ctrader Discord Channel??
So nice to also be a C# programmer and trader as well. You can develop your own bots. Haha. “Rumi” just happens to be my favorite eastern poet and philosopher, so I named my bot after him. I am not involved in the Ctrader Discord Channel.
It looks like today it’s the AUD pairs that are going to hit my stochastics upper/lower limit.
Placed my pending sell order for AUDUSD before taking a nap. See how perfect the entry is? 
I zoomed in to the 1 minute timeframe to see where my entry was. I do use stochastics only on the daily time frame though.
Explain this strategy that you use more than stochastic and is it profitable?
Please just backread the entire thread. You should have a better understanding of it.
So here, my entry was wrong and the market moved against me. In cases like this, I normally would wait 5 days by modifying my stochastics to 10/1/1 with the same upper/lower limit or 98/2 and use double position to get my position closer to where the price is at the moment as soon as the price hits my stochastics upper limit of 98 and ROC being at least +1.0%.
what is your ROC period setting?