Just remember that no matter what we will never catch all trades. Just set the timing to your region and trade what you see 
May be the next time stochastic will flash on your time zone and not mine. We cannot control that.
Philip,
Sometimes small details make a BIG difference in trading results.
To that end, assuming the 20/50 EMA cross, and Stochastics enters the correct 80/20 overbought/oversold area:
- Do we always wait for the current H4 candle to [B]CLOSE[/B] in order to enter a trade?
- Do we make certain that [B]BOTH[/B] the stochastic trigger line and main line cross back the OB/OS area or is [U]just the trigger line [/U]sufficient? Must the trigger and main lines also cross on the breakout of the OB/OS area?
Thanks!
My understanding is that you wait for the 4 hour candle to close - you just donât know whatâs going to happen until the candle closes - a last minute up or down surge may prevent a Stochastic cross from happening whereas it may have looked like it was going to be one at the time of your early entry.
Plus - if you wait you might get a better entry point - with a smaller stop loss.
Confirmation is the key.
Thanks Bucketman. What is the answer to my stochastic query?
You enter when the stochastic crosses its moving average. See the examples earlier for more explanation.
I gave examples that really cover everything from winning to losing. So even if you enter and the pattern fails, donât blame the entryâŚjust apply the exit and move on to the next trade. Also note that the winning% of the system drops as we diverge from the 4HR time frame.
Hereâs another question for Philip.I took a trade on Silver the other day which didnât work out but soon after we got a second entry (I was unfortunately asleep at the time I think)
Would you have entered again with a second entry (seeing how the first failed) - or if 1 fails do you wait for a cross of the MAâs again before looking to trade the same currency again. I ask this as you have said you prefer to trade only the first signal after a cross.
The first one did not fail. Iâm still at the first entry as well. Failure occurs only when your yellow EMA crosses back above the green EMA, which hasnât happened so far. Is it likely to fail? we donât know, we deal with the present. We know what to do when it fails and we know what to do when it works, we are fully prepared.
Additionally, your risk would have been 10 pips above the high to the left of your picture. This high has not been violated either so there should be no talk of failure or getting out of the trade (and as I explained earlier, I wouldnât get out of the trade just because it reached that high.) You have placed the stop loss incorrectly.
If you share the full picture I would show you where the stop loss should have been. It is the high before the EMAs crossed over. That high is not even there on your picture. I donât know why you placed the stop loss where you did.
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I think an opportunity for the GBPUSD appeared.
OK - clearly I have misinterpreted setting the Stop Loss somewhere along the lines (I used the high to the immediate left of the entry position as the Stop Loss - the picture I posted should have the Stop Loss a little higher - I just drew it in freehand - completely wrong though I admit).
I have attached a full chart and Iâm guessing the Stop Loss placement that you are talking about is around Position A. Makes a lot more sense as it gives the trade room to breath and carry on itâs road to profit.
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Thanks Philip. I am used to making an entry when stoch crosses the 80/20 barrier rather than when the stoch trigger line crosses its own moving average following the incursion into the OB/OS area. Yes, in looking back again at some of the examples it is very clear to me now.
It is the immediate high, but not of the entry. Its the immediate high before the crossover took place That is above point A.
Not on my chart. But again different time zones.
I got the same signal as Jalapenofan. I took a very small position on this one - though I got in a bit late. Just wanting to see how it plays out - think I set the Stop Loss in the right area this time 
.
Experience is knowledge - and knowledge is experience - or something like that.
.
But you can clearly see that there was an earlier signal before that on the left. Once againbucketman your stop loss is on the wrong place.
You need to go back when the 20 EMA and 50 EMA. Look for the most recent low and place your stop 10 pips below that.
If the stop loss is too wide, then you shouldnât have entered at the third signal instead of the first.
You just entered GBPUSD, I actually have already exited this same signal (I traded the first one) for a profit of 113 pips.
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OK - again - my thick head has got the better of me - shame itâs taken 14 pages to get here
So you are saying you take the high or low (in this case) closest to the 20/50 EMA crossover - which on my charts would have been back around 3rd Feb - down at the 1.4985 level (- another 10 pips). Your entry on the first signal Philip would have been around the 1.52165 area - by my charts anyway - there will be some difference, with an eventual trailing stopout at around 1.5340 (+120 pips).
I understand now why you like to only really take the first signal after the EMA cross - as the stops will just get wider and wider the further the trend continues.
As I said I took a very small position on this one - and who knows - it may work out for me - put letâs just call it a lesson trade.
That is right. Basically there is an upward move that cause the GBPUSDâs EMA to cross over. The low of that move is the one I set my stop loss below. This applies to any pair of course.
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Hmmm I understand what you say, so the thing is to catch the trend at the beginning, not in the second or the third pullback, I guess the r/r ratio is much better in this way and the % of good trades is bigger. Well, we will see how this trade goes.
OK - to summarise
- Wait for the [B]20 EMA[/B] to cross the [B]50 EMA[/B]
- Wait for Stochastics to reach opposite side of scale : for [B]longs[/B] oversold (below 20) / for [B]shorts[/B] overbought (above 80)
- Finally watch for [B]Stochastics Main[/B] line to cross [B]Signal[/B] line - enter on close of candle after signal line cross.
- Set [B]Stop Loss[/B] to recent high / low at time of 20/50 EMA cross
AndâŚ
Set [B]Take Profit[/B] (Trailing stop) via Fibonacci levels posted by Philip.
These are the Currency Pairs that are on my Radar starting this week. They have all had an EMA cross but no first signal yet (cross of Stochastics to other extreme)
[B] - USD/CAD
- GBP/AUD
- EUR/JPY
- EUR/CAD[/B]