Hello there.
Having a good system and be systematic in trading it is a best way to be succesful in Forex, isn’t it?
We have to trade in direction of a bigger trend and look at momentum to know what is happening now with the price.
I’m using Amibroker, cos it’s the best in dealing with multitimeframes. If you find multitimeframe stochastic for MT4 (I think there should be sth in the Net) you can use it on MT4, all indicators are custom .
Setup of indicators:
|| For 4h TF : Stochastic % K (X,3)
-X from 6-13 blue
-X 14 red
-X from 15-24 orange
FOR ALL STOCHASTICS: LEVELS are not 80/20 but 76.4 and 23.6
|| To see higher TF trends:
-daily % K (14,3) red AND % K (5,3) blue
-weekly % K(14,3) green (optional - % K (5,3) orange )
|| Momentum : MACD (5,13) without signal line, we need bars that shows if its losing value or growing up
||RSI(14) just for big overbought/oversold moments
ENTRY:
if Daily RED stoch is in the same direction as Weekly RED (remember! not today’s repainting value, but last fully closed)
+stochastic threads turning in directon of trend + MACD in direction of trend
|When stoch is overbought/oversold -we assume it’s trending up/down all time in that zone|
|We are looking at (14,3) for Daily and Weekly|
----If Daily red and Weekly red overbought/oversold we can enter without MACD confirmation(SL on last High, tight)
----If Daily red hits overbought/oversold opposite to Weekly trend, we enter in direction of Daily
----If Daily RED ,for example, go out from oversold but still <30 and Daily blue <50, we can enter, the same for overbought
|when Daily turns opposite of Weekly we can still trade on the first candle of the new day|
For example :
EXIT:
ALWAYS use STOP LOSS as exit, cos trend is in our favour and we want to ride it as long as we can!
Mechanical rules:
a) when Daily threads are still in their direction AND MACD changed color: SL from H/L +6 pips (it’s the best to have it at nearest resistance/support )
b) Daily threads are changing direction , aren’t overbought/oversold, and MACD changed color :
-if SL like in “a)” would be too big (20-30+ pips) -> SL +5 pips from Close
-if are overbought/oversold - like in “a)”
c) threads “spike” - 5 pips from Close
e)MACD changed color and RSI(14) overbought/oversold - very tight SL (<10 pips)
OTHER:
When we ENTER we always place 100 pips SL !
When market is ranging, place bigger SL at the bottom/top of the range to not enter many false trades.
You can trail your trade with SL on pullback high/lows
I’m using GMT -1 candles , I think that’s quite important to be close to them
Why those colorful stochastic threads? When you get more experienced, you can read more and more from their setups 
For basics read .pdf file
I am benefiting from Spudfyre and Philip Nel work, posted on “other forums”
I want to make it mechanical, as system should be. Of course adding your experience can squeeze more pips from the market
StochThreads.pdf (692 KB)