At this time I would like to introduce you to the 533 Cross Trade (533CT). This is a fun trade that will give us added momentum especially after we have closed out at 10 - 15% in profit if indeed we continue to do so. I think you will enjoy this one. I find this to be a high probability trade. Such that it may be possible to put on a higher risk margin in terms of a larger lot size.
I will keep an eye on this in the future.
General Rules: 
As you can see from the chart above, at our first arrow on the chart, we have a ST dot that is below the bar. At this point we would be looking for short trades only.
From this ST dot we would now wait for the %K of the Stochastic to cross below %D. This happens a few days later, but we would not take this trade because just before this occurs, the ST dot appears on top of the bars as is seen by the second arrow. Now we would be looking for Long Trades only.
As you continue to move right on the chart you will see a "thumbs-up" on the chart and the stochastic. At this point we have a long trade signalled by the ST dot and we also have the 533 Crossing Long. We would take our normal Long entry position here and close out of this trade after the %K crossed over the 91 level of the stochastics.
That is about all that I can think of. This trade does not happen often, but if you wait for proper placement, I think a person could go some pretty high lot sizes here and make some big dollars.
Cheers and happy poppin'
I will keep an eye on this in the future.
General Rules:
- You will always trade in the direction of the last ST dot, but in a different manor than we currently trade using the ST dots.
- If the ST dot is below the bar we will only make 533CT trades short and if tthe ST dot is above the bar we will only make 533CT trades long.
- Cross Trade means when the %K line of the stochastic crosses the %D of the sotchastics.
- Because I am thinking that we could do higher risk with this trade, I am thinking that we should close this trade out once it crosses the 91 or the 7 level of the stochastics. This is not set in stone however, as many times you should let it run.
- Otherwise normal S/L and Exit rules apply.
- You will want to make sure that for a long signal to be valid that the 533 Cross would have happened somewhere on the lower 1/4 - 1/2 (depending on pair) of the indicator
- You will want to make sure that for a short signal to be valid that teht 533 Cross would have happened somewhrere on the Upper 1/4 - 1/2 (depending on pair) of the indictor
- Don't take the trade if any crosses happen above level 91 or below level 7 of stochastic 5,3,3 regardless of direction.
- Never take more than 2 trades in a row without having an ST dot form in the other direction.
Please see the chart below for a visual description of a Long Trade:
As you can see from the chart above, at our first arrow on the chart, we have a ST dot that is below the bar. At this point we would be looking for short trades only.
From this ST dot we would now wait for the %K of the Stochastic to cross below %D. This happens a few days later, but we would not take this trade because just before this occurs, the ST dot appears on top of the bars as is seen by the second arrow. Now we would be looking for Long Trades only.
As you continue to move right on the chart you will see a "thumbs-up" on the chart and the stochastic. At this point we have a long trade signalled by the ST dot and we also have the 533 Crossing Long. We would take our normal Long entry position here and close out of this trade after the %K crossed over the 91 level of the stochastics.
That is about all that I can think of. This trade does not happen often, but if you wait for proper placement, I think a person could go some pretty high lot sizes here and make some big dollars.
Cheers and happy poppin'
"Keep your eyes on the helpers" - Mr. Rogers
I closed prematurely, but thats OK, soon enough I will have the confidence to let the profits run. Keep in mind that we have important economic news coming out for GBP soon.
.
