Chart of daily EUR/USD, stochastic showing (1, 3, 14) bottom left of picture which I think are the correct settings
The correct Stochastic settings are 14,3,1. The Daily chart should look like this:
According to the original rules, this system should be done on the 4 Hr chart. I donāt recall if others tested the system on the Daily chart.
Thankyou, I only looked at the daily and weekly charts as I canāt see the stochastics crossing into overbought or oversold figures on any 4 hr charts so thought I would look further back to check, and I canāt see it happening on any of the daily or weekly charts either which is why i wondered if my settings were correct, do you think it matters that my chart shows 1, 3, 14 as opposed to yours which shows 14, 3, 1? And if so how would I correct that? Thanks for your help
There should be a way to change the settings on your charting software. Change the settings so that K=14 and D=3. If you Google āstochastic settingsā you can get an explanation of what these input parameters mean. Compare your chart to the one I posted before. When your stochastic looks like mine then your chart is correct.
You should see many stochastic crossovers to overbought and oversold on any time frame if your settings are correct.
Fantastic, it worked, so Iāve got K at 14, D at 3, slowing at 1, price field low/high, MA method Simple, fixed minimum 0 and fixed maximum 100, thank you
Hello, please could I check - I need to add the Fibonacci extension (expansion itās called on my MT4), do I need to be inserting it to three points? When I try to enter it from the swing high to the low it disappears from the chart and the numbers are no longer visible?
Iāve had another look through the thread and came across this post, if this is the correct method to plot the Fibonacci Iāve got 0 at the top and 100 at the bottom, but what numbers should I be changing them to from top to bottom, and the same if it was a Long trade?
You may want to ignore that, later in the thread it becomes trailing by 100 pips. It may also be worth checking out this similar system:
https://www.forexfactory.com/showthread.php?t=340556
Hiya,
can someone give me final strategy of this after all tweaking please? Anyone using this now?
Thnx
Use the system as laid out in the original post with the following changes:
- Check weekly for a stoch crossing before dropping to a 4hr chart to look for an entry in the direction of the cross.
- Forget the Fib stuff.
- 100 pip trailing stop or original exit.
More or less sums it up.
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Ok, I was going to upload an image, but I donāt have the permissions apparently.
Anyway, youāre looking for a stoch cross anywhere on weekly. A good example is NZD/USD looks to be setting up now. Once this week closes, if the stoch crosses down, I would look on the 4hr chart for the entry signal.
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Hiya,
Iām sure you are so knowledgeable but I donāt understand because Iām newbie. Could you explain what you mean by:
āstoch cross anywhere on weekly.ā do you mean I should look at 1W(1 week chart), see where the stoch cross? cross up or down?
" NZD/USD looks to be setting up now." do you mean stoch cross happened?
āOnce this week closes, if the stoch crosses downā do you mean once this week end? look at stoch if its cross to down?
May I ask is this strategy only works for over the week holding position only?
If I understand correctly, you mean I should look for 1W chart for strategy setup on stoch going from oversold to overbought the open a sell position for 100 pips? or vise versa in long position wait from overbought to oversold the open a buy position with 100 pip profit target?
Thnx
Iām talking if there is a stochastic cross on weekly, you then drop to the 4hr chart to trade in that direction. So, for example, if this week NZD/USD closes down and generated a stochastic cross down on the weekly I would look for a short trade on 4hr chart next week. Direction of moving averages on the weekly doesnāt really matter.
If I could post pictures I think it would be clearer, but thatās about as simple as I can explain by text.
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Hiya,
may please tell me in my picture, its 7Day (1W) chart NZD/USD as you mentioned. may please tell me how do you read the stoch ?
Thnx
I have built in a filter which would have avoided this trade. If the 20 is clearly closing on the 50 then I donāt enter.
Philip
where are you now?
best regards
Just wondering if anybody is still on with this system?
I came across the thread a few months ago and have been trading the system as defined by Philips rules.
Having been achieving a 75% success rate across all forex pairs traded.
I guess Philip decided to continue outside the thread - or stopped trading it.
I have been trading successfully for around 20 years so I have seen many systems and strategies over the years. I came across this just googling different things and it looked interesting.
Having read the complete thread two or three times I can see that Philip may have got frustrated with the constant back and forth of the questions about the rules and the negativity of some respondents.
Anyway, just curious if anybody is still using it and what sort of results they are seeing.
Please excuse my ignorance, but what are the stocastic mumbers. Is it 14-3-3?