bringin sexy back - stochastics

not the best setup but its a 1h chart and its a bit longer term and with the right combination it could be a nice 30 pips or so for trading at an odd time.

not the best setup because:

20 and 50 are close together but with a bit of space which is good
time of day its late.

good setup because

20 and 50 are trending up nicely
the 100 is above 80 which is a really good confirmation that trend is up
enter at the stochastics cross or during consolidation or a break of that consolidation

this trade would have gotten more than 30 pips so say stop is 30 pips aim for 30 or 40. the best setups have a high hit rate. the time of day will be an issue but since its longer time frames then its not much of a problem
ill post another setup next.

HAving alll those lines in STOCH looks scary. No matter, will look into it. Any information as to how this will hold up in ranging markets or even the dull Asian session?

2 buy examples. 1st in the afternoon gmt and 2nd at midnight.
really good setup

all 3 stochs are trending up nicely. enter at the cross of stochastic. if u missed the first the second was the start of a major move up. either aim for double ur stop if ur stop is 30 aim for 60-70 pips on a 1h chart with a good setup or if u can watch occasionally set ur target and if u see price moving up nicely then trail it or check for another signal and if another signal forms then increase ur target or add another position.

in this example after the first and second buy, the stoch 5 crossed up again and again after the 2nd buy so its telling u to add or stay in ur trades.
this one would have gotten close to 200 pips. say u got 100 out of it tahts really good for a few days period

lol im sorry ill try to keep it cute and sexy with my next system. i thought about putting a picture of a pornstar as my background but i dont think i can do that with metatrader

try to avoid trading the asian session unless its a longer time framee and a really good setup.

as for ranging markets well the 1h can be ranging but when it ranges its going up and down so go down to 15 min or 5 min and catch the pull backs on those up and down moves. theres always a trend. it doesnt always have to be on 1h chart or 4h or daily. it can be on a 1 min chart if the 15 min and 5 min are ranging. with a really small spread like 2 pips on the euro theyr very tradable

Hi boxingislife.

I have the same problem, I tried your advise but it does not work. I use MT4. Wha can I do?

Click on the Navigator window first. Get the indicator from there and drag it to the desired spot.

Yeah! Now it`s work fine! Thanx for your help!

Are you looking for the 5 for only overbought or oversold or do you also look for the 5 to cross any of the other STOCH lines? Do you wait for the candle close before entering a trade?

For STOCH, MA Method is SIMPLE? and PRICE FIELD is LOW/HIGH?

well oversold overbought and crosses. sometimes the 5 doesnt pull back all the way to oversold or overbought but only pulls back to the 50 line for example. i usually look for teh 20 and 50 to be trending nicely and then i look for price to consolidate and for the 5 stoch to cross back in the direction of the 20 and 50. its a bonus when it pulls into oversold or overbought and usually makes for an easier entry.

MA method is simple and price field is low/high. default settings

I use the FXDD metatrader platform and I can't seem to have all three stochastics in one window, anyone care to help?

1580:

Plot the first stoch as usual. Then click once and drag the next stoch INTO the first stoch window frame, not the chart area. Do this again for the third stoch. I use FXDD also so it'll work..

i clicked on the navigator window ( i use MT4 like rosso) so it's fine now, thanks!!!

Hey Boxing,

You mentioned earlier that you don't recommend trading the Asian session...is that still true if you are trading the usd/jpy pair? Also, have you found any timeframes that are better than others? London Open or Close? US open? Have you noticed if news affects your signals at all? I'll try to keep an eye on these things as well...just wondering what your input might be?

hey 211

the only reason why i dont like trading the asian session is because i mostly stick to 5 and 15 min charts and during the asian session the action is small so its hard to catch decent trades even when the best setup happens. now for jpy pairs i guess action is decent during the asian session so it wouldnt be a bad idea to trade some jpy pairs. i personally am not a big fan of usdjpy but from what ur saying it might provide some action so im gonna keep checking on usdjpy during the asian session and other jpy pairs. but when trading 1h+ then trading sessions dont really matter. just dont trade friday afternoon or sunday night.
(i just said asian session like 10 times)

for time frames, it depends on ur style. i can watch my trades during the day so i can trade 5 and 15 min charts. but now ill be switching to 1h+ because of university and watching charts isnt gonna be my priority and with limited time to do that. it really depends on ur style and if u like small stops small targets or big targets big stops or if u have a day job and cant trade during the day u should go for 1h+ charts.
they all work equally good. each with its own targets and stops. it wouldnt hurt to watch the 5 15 and 1h and occasionally look at 4h and daily. do that on 2 pairs. that way u see which one ur comfortable with and such. silly but i like the number 15 so alot of times im trading the 15 min chart.

i think what u meant by time frames is which session. hmm i trade from around 10am to around 1700 or 1800 my time which is 8am to 1500-1600 gmt. sometimes a bit eariler and i stay a bit later. basically europe open all the way till about close which overlaps with the us session.

as for news they can offer some good trades but can be tricky so even when the best setup happens especially because it was news driven i try to avoid it. but i noticed they can bring some pips once news is done and over with and the set up is really good and about to happen.

I am enclosing a chart of a particularly good set of 3 examples of what I am talking about. It is the 1H Swissie chart. The first 2 bundles are in overbought territory, the third is not. Look carefully for the second bundle because the arrow is in the printing at the top of the chart.

I would have taken the first 2 trades in overbought territory and not the third which was midrange. You will also see that the first 2 would have succeeded and the third not.

I do not know if you have ever noticed any of my posts, but I am a fan of looking at multiple timeframes using the same indicator(s) in my trading system. I apply the same rule to others.

I have found that different timeframes work best for different pairs. I usually use 3 timeframes, but only 2 for some pairs. I advise everyone to experiment with this. You will find that it keeps you out of an amazing number of bad trades. Do not worry about the good trades it also keeps you out of because the bad trades you do not take more than make up for this.

ur time is limited and can only watch long term charts? well i gotta solution for you.

1: 20 and 50 are trending down nicely. big spread between the 20 and its signal line same with the 50. 100 is also trending down. the 5 pulls back pretty far almost into overbought area. enter at the cross of the 5 stochs when the new candle opens.stop above the previous days high its the bar with the x above it and target usually more than the stop. in this case sell at 1.2486 stop at 2552 target at 2386. the stop is 66 i would target a bit more than the stop and go for 100.

2: same story. stop is around 100 pips so target 150-200 MINIMUM. which u can obviously see it made 400-500 pips. in a case like that i would get out 40-50% of my position at 100 pips profit move my stop to breakeven and aim for another 100 pips. if thats easily reached then ill close a bit more of my position and move my stop to 100 pips then aim for another 50 or 100. that way u can get the most bang for ur $$$$.

3: why take this one? the 5 barely pulled back. but a continuation from 2 this would be a great confirmation that price is falling even more so that u know u can catch some more profit

4: tricky because 100 is oversold and flat. all indications show for a good trade but since the 100 is flat and oversold and were lookin to buy then it would have made me careful. i would have probably taken the trade with a smaller stop than the previous low and a target of about the same.

5: perfect trade. once the big bar closes enter when the next bar opens with a stop at the big bar's low. target around 1.5 to 2 times the stop or do like i described in trade #2

6: very nice trade in the making. 20 overbought and above its signal line. 50 and 100 trending up nicely. the 5 already half way. i would wait for a cross of the 5 up and enter. keep ur eyes open for this one as long as the cross of the 5 happens and everything else agrees then were in business baby!!!.

This goes with the last post.

Here is the 15M chart for the same time period. You will notice that the first 2 (good) trades still look good but the third is a trade that I think none of you would have taken. It would just plainly have been a bad trade, but that was not obvious on the 1H chart. If you check the 30M chart that third trade did not look good there either.

Check this approach out with whatever system you use, I think that you will find it invaluable.

Boxing,
Thanks for the info. I'm in a similiar situation as you. I can't always look at my charts due to my job. But some days I will be able to view the 5min&15min charts. I'll also need to try trading with the 1hr. Will have to demo it for a bit and see how things work out. I was just looking back a few days on the MT4 charts for the GBP/USD, EUR/USD and USD/JPY pairs on the 5&15min charts....it looks like if you saw a good trade setup and took it, you'd only need a 15-20pip stop loss and set up a 10pip trailing stop, you'd do pretty well. Very minimal loss if you didn't get a profit. Haven't checked the 1hr charts though. Should find out more this week. Have fun!

thanks moonchild i was wrong in assuming this would work better in neutral territory. i see exactly what u are saying now. very nice setup indeed. its great at catching reversals like u said. thanks again

First of all,

"bringin sexy back"

I never thought Justin Timberlake lyrics and Forex terms would be used in one place, but here I am seeing it in action

Secondly,

Thanks for sharing your system.

Kevin