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New Method: Combination of Stochastic+RSI

  • #21
  • Nov 9, 2009 4:05pm Nov 9, 2009 4:05pm
There are the 5 time frames that I use in day trading.
Attached Image (click to enlarge)
Click to Enlarge Name: euro.gif Size: 61 KB
Being a fxtrader is not easy. Ones must working hard.
  • #22
  • Nov 9, 2009 5:10pm Nov 9, 2009 5:10pm
sriloba,

Do you wait for the candles to close before entering trades?
  • #23
  • Nov 9, 2009 5:22pm Nov 9, 2009 5:22pm
Hi chamane,
Yes, it is better to wait for the candle closes before enter a trade in lower time frame when all confirmed.
Being a fxtrader is not easy. Ones must working hard.
  • #24
  • Nov 9, 2009 6:11pm Nov 9, 2009 6:11pm
sriloba,

Would you please comment on the setup in the picture? Price on 5 min chart is showing a retracement, but there are signs elsewhere (green circles) showing everything is not perfect. Would you enter now? Thanks

http://i33.tinypic.com/2qjj0he.gif
  • #25
  • Nov 9, 2009 7:48pm Nov 9, 2009 7:48pm
Hi, chamane

Sorry for taking long to response.

The 4h chart shows that price found resistance at M4 weekly underligned by green rectangle. Stoch is in overbought area and start to cross down. The yellow vertical line confirm the stoc cross down. But price trade above the 5ema shiftf 1 so the bias is still up.

Let see in low time frame if we can find a signal to go long.
Attached Image (click to enlarge)
Click to Enlarge Name: euro.gif Size: 18 KB
Being a fxtrader is not easy. Ones must working hard.
  • #26
  • Nov 9, 2009 8:10pm Nov 9, 2009 8:10pm
Quoting sriloba
Hi, chamane

Sorry for taking long to response.

The 4h chart shows that price found resistance at M4 weekly underligned by green rectangle. Stoch is in overbought area and start to cross down. The yellow vertical line confirm the stoc cross down. But price trade above the 5ema shiftf 1 so the bias is still up.

Let see in low time frame if we can find a signal to go long.
Thanks for the explanations. Then if the bias is still up on the 4hr, there are signs of trend exhaustion. Maybe it is better to wait for the start of a new trend where all indicators agree and catch a high probability of a greater moves. We'll see.
  • #27
  • Nov 9, 2009 8:12pm Nov 9, 2009 8:12pm
In 1h chart, macd is extremely overbought and start to cross down.
During the asian session price tempts to test the previous daily high-low most of the time.
The vertical line in hourly chart is a signal to go long.
I will enter long trade in 1 min chart because the set up is almost perfect than the 5 min chart except stoch is in overbought area as indicated by the yellow vertical line.

Perfect entry long when price is above 5 ema shift 1 confirm by the oscillators in the same direction (up)
Attached Image (click to enlarge)
Click to Enlarge Name: euro.gif Size: 54 KB
Being a fxtrader is not easy. Ones must working hard.
  • #28
  • Nov 9, 2009 8:16pm Nov 9, 2009 8:16pm
Yes, you are right it is better to wait for the start of a new trend where all indicators agree and catch a high probability of a greater moves.
Being a fxtrader is not easy. Ones must working hard.
  • #29
  • Nov 9, 2009 8:56pm Nov 9, 2009 8:56pm
sriloba,

You said that you were trading from 0:00-7:30 ET. How many opportunities would you say you can get to try for 30 pips with only EURUSD during that period of time with your strategy? I suppose that some days you don't trade because the signals are not strong enough? In that case, wouldn't it be better to follow 2 or 3 other pairs? Thanks.
  • #30
  • Nov 9, 2009 9:27pm Nov 9, 2009 9:27pm
Hi chamane,

I use to scan the majors (pound, euro, yen, aussie, loonie, swiss franc and the cross, e/y) at midnight.
Being a fxtrader is not easy. Ones must working hard.
  • #31
  • Nov 10, 2009 12:01am Nov 10, 2009 12:01am
Hi sriloba,

I have just scanned the majors but I am having a hard time selecting one that I think should be the best option. Many times price has crossed 5ema -1, but one of the indicators does not agree with it, rsi or sto. I selected GBPUSD because I think it meets all the criteria, although there has been a huge drawdown helping the indicators to align in one direction.

Do you have any hints in selecting the right pair to watch when you scan them?

In my example, all TF show correct indicators except Stochastic in 15 min and 5 min charts where it is oversold because of the drawdown, but I suppose it doesn't matter much.

When do you enter? Do you wait for price in 5 min to retrace up and get back down?

Thanks.

http://i35.tinypic.com/md12tg.gif
  • #32
  • Nov 10, 2009 12:07am Nov 10, 2009 12:07am
Hi,

I will have a close look at aussie, euro and e/y for today
I will see how this actual candle will close.
Just remember, we want to see price makes a clean break below the 5 ema shift 1 and rsi<50 , stoc cross down to confirm the down bias in 4h chart
Attached Image (click to enlarge)
Click to Enlarge Name: scan.gif Size: 51 KB
Being a fxtrader is not easy. Ones must working hard.
  • #33
  • Nov 10, 2009 12:34am Nov 10, 2009 12:34am
Hi chamane,

The actual body candle in 4h chart is wide. When it closes price will retrace.

in 15 min chart, stoch is in oversold area and cross up. I will wait the stoch in 15 min chart cross down again then we have a signal to go down
Attached Image (click to enlarge)
Click to Enlarge Name: pound.gif Size: 33 KB
Being a fxtrader is not easy. Ones must working hard.
  • #34
  • Nov 10, 2009 12:39am Nov 10, 2009 12:39am
Quoting sriloba
Hi chamane,

The actual body candle in 4h chart is wide. When it closes price will retrace.

in 15 min chart, stoch is in oversold area and cross up. I will wait the stoch in 15 min chart cross down again then we have a signal to go down
Sto is overbought in the 5 min chart. I suppose that we could enter short there but it is better to wait for the same to occur in a higher timeframe if possible?
  • #35
  • Nov 10, 2009 12:47am Nov 10, 2009 12:47am
The best signal for pound, from my point of view, when the stoc in 15 min chart go to overbought area and cross down. Then we have macd and stoch are in harmony. I will wait until 2:00 am ET to see how this actual will close.
Being a fxtrader is not easy. Ones must working hard.
  • #36
  • Nov 10, 2009 12:53am Nov 10, 2009 12:53am
British pound :

Be careful the bullish divergence of price to stoc is in process in hourly chart.
Being a fxtrader is not easy. Ones must working hard.
  • #37
  • Nov 10, 2009 12:54am Nov 10, 2009 12:54am
I guess you are right. When sto was coming down from overbought in 5min chart, MACD was up. Better to have MACD on our side first as you say.
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  • #38
  • Nov 10, 2009 1:02am Nov 10, 2009 1:02am
When I have a clear bias from 4h chart I go to see a signal in 15 min chart if all conditions are met then I pinpoint in 5min or 1 min charts when all agree.
For spot, I like to spent more time in 15 min chart.
Being a fxtrader is not easy. Ones must working hard.
  • #39
  • Nov 10, 2009 1:04am Nov 10, 2009 1:04am
Quoting sriloba
When I have a clear bias from 4h chart I go to see a signal in 15 min chart if all conditions are met then I pinpoint in 5min or 1 min charts when all agree.
For spot, I like to spent more time in 15 min chart.
Do you use the 30 min chart? It is often mentioned in multiple timeframe analysis with 4hr and 5 min.
  • #40
  • Nov 10, 2009 1:06am Nov 10, 2009 1:06am
Yes, sometimes when 1h or 15 min chart is not clear.
Being a fxtrader is not easy. Ones must working hard.
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