Hello. I’ve been trading Forex since one year and been through many system’s. Past 2 month’s i was trading using stoch divergence(14,3,3) . I’ve only realised it’s importance after watching ICT’s how pro’s trade indicator’s video. My strategy is very simple, i trade the divergences using the support and resistance and im finding it very reliable. But couldn’t avoid fakeouts or such.
Now, could any senior member or anyone help me refine it more, i mean what should i precisely look for to limit my trades and also to avoid most fake signals.
Had anyone made money using stoch divergence ever ? or am i the only one basing my trading on it solely…
I use stochastics as well for spotting divergence. I am mainly a price action trader, so support/resistence followed by clear price action like engulfing candles etc are what I use to spot trades. I use divergence just as a extra conformation along with fib lines.
I sound about the same as James - I use RSI on my Hourly and above charts, but I use it simply as a further confirmation. S&R mixed with PA is basically what I trade, but I like to add in Fib and RSI to give me more reasons to enter the trade.
If OP wants to make Stochs the focus of the strategy, then perhaps try a reverse of this approach: use Stoch to find an attractive setup, then come up with a list of things one would want to see as extra factors. So if, for instance, you want three reasons to be in a trade, reject Stoch setups that are not supported by S&R or Fib or PA etc.
And PPF: I knew we’d drag you kicking and screaming away from your ‘indicators are always useless’ stance in the end lol.
Thanks for the reply guys. It was really helpful. Made 40 pips today in GU using the same method i’ve posted. This really seems to be helpful. Need to study more about PA.
@ST - I’m looking for confluences before triggering a trade like Pivot points, Key support and resistant level’s, fibs and also i mostly trade in accordance with the Bias.
I know, well when you find out better you got to go with it haven’t you, I have always kept an eye out oscillators though, it was ICT that convinced me, and when you see it plain as day, you just can’t ignore it.
However this is very much an exception, I suppose MA’s can be useful too, but that’s as far as it goes, nothing else matters, no one could ever convince me that MACD was any use whatsoever, it’s trying to be a trend indicator and an oscillator at the same time and ending up being nothing, except pretty (no sexist jokes please ),
It looks as though you touched a raw nerve or two there. But I do agree with virtually all your points in that post. Nice to have a straight talker on here every now & again. Unfortunately they don’t like to hear what people like you have to say, but it helps to dilute all the sickly sweet, over-the-top gloop that tends to seep into every pore.
Regards the thread topic, if you haven’t already done so you could take browse through the Technical Template Continued thread carl89. Your namesake on there (Carll) presented a neat little option using the stochastic indicator to assist with narrowing down higher probability opportunities across a dual timeframe approach. There is a lot more of that set up discussed in both real time & ahead of time on another forum which is linked within that thread if the information interests you.
It doesn’t insist on the exclusive use of divergence as a primer, but does advocate it’s inclusion as & when it pops up in sync with a simple set of 2 structural guidelines. Well worth a look in my humble opinion.
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