DislikedI can see where using this particular Stochastic and settings, may have kept those people that take multiple positions, out of 3 losing trades as shown Of course trade "A" would be a loser no matter how you entered And the current signal remains to be seen if it makes any pips, but as long as it goes down far enough to set off break even, then no loss at least The EMA's on daily are being pushed by price, shows how delicate the math is within the EA to trigger the entry Time will tell ... {image}Ignored
Dr Elder writes in his book:
For conservative traders, choose a relatively slow oscillator, such as
daily MACD-Histogram or Stochastics, for the second screen. When the
weekly trend is up, look for daily MACD-Histogram to fall below zero
and tick up, or for Stochastic to fall to its lower reference line, giving
a buy signal. Reverse these rules for shorting in bear markets. When trend following
indicators point down on the weekly charts, but daily MACDHistogram
ticks down from above its zero line, or Stochastic rallies to
its upper reference line, they give sell signals.
Add: Of course he is using weekly and daily TF as examples in his book. We use daily and hourly, but same concept applies.
Cheers