Straightforward Bands with Stochastic

Another example showing a very nice long entry. Notice that the two MA bands show no trend, but the Stochastic cross with confirmation is a signal to consider.

A third example showing a long entry and a short entry.

During the uptrend shown, there are several good buy signals, based on the strategy described in the first post. The chart just shows one long and one short that are based on an extension of the strategy.

Examples of two good long entries on H4 AUDUSD.

The "good youtubers." That's funny.

You're not really steering someone toward a moving average cross...

Stoch's settings:
1. Price field: close/close OR low/high?
2. MA method: exponential OR simple OR...?

Thank you.

Suggestion: Go to the M1 chart when you see very high and very low Stochastic crosses on the H4 chart.

ANY technical indicator or combination of indicators can become meaningless when the market does something surprising.

Whatever you choose as signals, it's good to go through the exercise of looking at where you would have placed trades and be honest with yourself about where the signals are trampled by market action. And figure out how you would react when that happens.

1. Give up?
2. Blame the YouTuber or other self-proclaimed trading guru who suggested the indicators?
3. Wait patiently for the next signal and enter the market again?

Looking at recent H4 EURUSD, the last two signals per the criteria described in the first post of the thread, are good.

So with this new style what purpose does the bands serve?

They are used to determine if a short-term trend is in effect. If so, you may want to use the strategy as originally posted. If the bands are overlapping, you may want to put more emphasis on extreme stochastic levels, unless you decide to stay out of trades when bands are overlapping. You may even want to go counter-trend based on stochastic crosses at extreme levels.

In general, some type of trend indicators are useful to have on the chart.

In countertrend cases, I would have a bias toward taking profit early, such as when Stochastic values reach high levels when long, and when they reach low levels when short.

as I see, if the bands are overlapping it could signal to the trader that price isn’t heavily trending in any direction so you can capitalize on extreme over sold or overbought conditions because the market is more keen for a reversal.

Where as if it was heavily trending extreme levels might never pull back and price makes a continuation

If scalping, have a look at the one minute chart entries posted on this thread. In that case, the trader is watching for price touching the trend lines.

Yes, and of course, even in a strong trend, the price can suddenly reverse.

Seems a lot of people are looking for a simple magic formula that will guarantee them profitability. The "good YouTubers" play into that.

There's no such thing.

I really like your analysis on the intersection of the bands. Let me ask you if you would be interested in applying some smart money concepts, and top down multi-time frame analysis to your second approach. What we have when the two bands intersect is a divergence of moving averages. Short term market moving one way, and the Long Term moving average in another. In theory, the traders on one of these sides is right, but which one? One of these sides will become liquidity for the other. This creates an area of consolidation or accumulation and can lead to a breakout. This breakout can be spotted on the LTF.

What we can use to identify a reversal in the direction the market actually wants to go is by spotting a liquidity sweep on the 15 Minute Time Frame. Liquidity zones are levels where the liquidity makes a decision that can drive price because a large number of orders hit the market. These can be found on the high and lows of pivot points, the area traders usually set their stop loss. Another thing to note is that trends are your friends only until the end, so play the trends and don’t fight them. This is exactly why this approach will absorb all the orders from the traders stuck on the wrong side of the trend (short term) and betting against the right trend (long term)

So how does it setup?

Once any part of the 12 Bands touches a part of the 72 Band, we have reached a divergence in trends and the market is in accumulation

If the 12 Bands are coming DOWN into the 72 bands, we look for a liquidity sweep to the downside to make a long entry.
If the 12 bands are coming UP into the 72 bands, we look for a liquidity sweep to the upside to make a short entry.

Once the market has started consolidating we then switch to the 15 Minute Time Frame to find a liquidity sweep. To find a proper liquidity sweep you need to be able to identify pivot highs and lows.

For a buy, we set a buy order at the high of the candle that falls below the most recent pivot low sweeping it and grabbing liquidity

For a sell, we set a short order at the low of the candle that sweep above the most recent pivot high sweeping it, and grabbing liquidity

4H Bottom Touch - Looking for shorts


15M liquidity sweep

I know this analysis has some real merit because shortly after every successful setup, there's a massive sell off or influx of buys, meaning we timed the market.

The big banks prey on all the LTF retail traders (short term trend) while we wait for them to be liquidated and ride the wave back in the right direction (long term trend)

On the 15M time frame, the 4H 72 Band can be quite an interesting area. Playing around with the concept of only taking shorts above it or on it, and only taking longs below it or on it, so we always catch price at a discount, and never at premium. This is future conceptualizing, and not even sure if this ideology is welcomed here. If this derails to much from the systems talked about so far on this thread, I will delete these posts. Thanks!

simple expert adviser for this strategy with fix tp and stop, use and test it
when i got some time i make it better

Very high percentage of good signals for June 2023.