Stoch Never Lines Up

Beginner Questions
1

I’m still working on a Demo account, but the system I’m working with is a SMA cross over on the 5, 10, 20 day averages. Them I’m using MACD and Stoch to confirm the trend. When the 5 day SMA crosses over along with the MACD crossing and the Stock confirming a paid us overbought or oversold then I move.

I’m a Swing Trader on the Daily Chart. With that said, I’ve seen several set ups where the SMA and the MACD cross, but the Stoch has already moved.

Example…(hypothetical, not based on any recent chart)

EUR/USD…

The 5 day SMA crosses over the 10/20 while the MACD crosses as well in a bearish way. I check the Stoch and it’s already moved into oversold territory. This has continuously happened over several pairs over several weeks.

If my system involves having all three indicators line up, will I ever trade with the Stoch being so far ahead of the other two? Why is the Stoch so far ahead of the other 2?

I’ve been messing around with just the SMA and MACD as indicators to enter, but I’m down about $500 overall(Again, fake money on a demo account).

My Stoch is set at 5 3 3 20 80

Thanks in advance.

2

Why is the stoch, or the MACD or the SMA’s in your system?

Why havent you got 10 trending indicators and 10 oscillating indicators for extra confirmation?

Here is my suggestion to you if you want to experiment with these technical indicators,

Pick one trending indicator;
Pick one oscillating indicator.

  1. When the market is trending on a higher time frame, (SMA cross on daily chart for example)
  2. Wait for a pull back to buy the dip or sell the rally on the 4H then on the 1H time frame in to the prevailing trend. (overbought or oversold on Stoch)

You might want to look in to Dr. Alexanders elders triple screen trading system.

1 Like
3

You should get more indicators in order to get confirmations on a regular basis. You can also make good use of some oscillating indicators and some trending indicators and experiment with them to see if they are of any help.

4

I suggest you go for additional indicators, possibly trend indicators and some oscillating indicators. Try to pick one trend and one oscillating indicator and see if it works for you.