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Method of using Stochastic Oscillator Profitably

  • #21
  • Mar 10, 2017 1:02pm Mar 10, 2017 1:02pm
I wish to say here what I have said in the other thread that I could be both bullish and bearish in one currency. For example AUDNZD long; AUDUSD short. Am using eleven platforms for my backtesting. I don't want to skip some that meet my entry point
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  • #22
  • Mar 10, 2017 1:10pm Mar 10, 2017 1:10pm
Also am avoiding taking correlated pairs. This is because a strong retracement on the correlated pairs could easily wipe account even when our positions and analyses are correct. For example am already bullish in the following GBP pairs: EURGBP, using lower band rejection strategy, EURNZD, EURUSD and today I have entered EURCAD long. They are all in different platforms.
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  • #23
  • Mar 10, 2017 3:12pm Mar 10, 2017 3:12pm
Hello 9jatrader,

if I understand well, this strategy is to wait until we have the stocastic above 80 and to wait until a resistance is broken, then we enter long, or to wait until we have the stocastico below 20 and to wait until a support is broken, then we enter short, right?
I see you use also BB, what is the purpose of them? Which TF do you use? Do you use SL, TP? What is usually your target in term of RR?
Can you please post some charts with clear entry, sl, exit?

Thanks, subscribed!
Okrim
  • #24
  • Mar 10, 2017 10:02pm Mar 10, 2017 10:02pm
Quoting 9jatrader
Also am avoiding taking correlated pairs. This is because a strong retracement on the correlated pairs could easily wipe account even when our positions and analyses are correct. For example am already bullish in the following GBP pairs: EURGBP, using lower band rejection strategy, EURNZD, EURUSD and today I have entered EURCAD long. They are all in different platforms.
Hello 9jatrader,

Thanks for the input.

Could you kindly elaborate on the reasoning for your statement if possible with an example. I want to understand why it is so...:

"Also am avoiding taking correlated pairs. This is because a strong retracement on the correlated pairs could easily wipe account even when our positions and analyses are correct."

Thanks
  • #25
  • Mar 10, 2017 10:40pm Mar 10, 2017 10:40pm
would your suggestion be to enter long at 30 or short at 70 then?
  • #26
  • Edited 1:27pm Mar 11, 2017 5:31am | Edited 1:27pm
Please I will answer yours questions here soon

Quoting okrim
Hello 9jatrader, if I understand well, this strategy is to wait until we have the stocastic above 80 and to wait until a resistance is broken, then we enter long, or to wait until we have the stocastico below 20 and to wait until a support is broken, then we enter short, right? I see you use also BB, what is the purpose of them? Which TF do you use? Do you use SL, TP? What is usually your target in term of RR? Can you please post some charts with clear entry, sl, exit? Thanks, subscribed! Okrim
I have shared so many charts in one of my threads, even stochastic-based setup in "Simple and Profitable Trading Style". I have the current EURNZD long position
Attached Image (click to enlarge)
Click to Enlarge Name: eurnzd-d1b.png Size: 42 KB
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  • #27
  • Mar 11, 2017 6:14am Mar 11, 2017 6:14am
Hi Okrim,
You got it right when to enter. I use SL, my TP is the last weekly high ( resistance ) for long position; the last weekly low price ( support ) for short position. rYour stop loss should be below the broken resistance- for long position; and above the broken support- for short position. I hope am able to answer all your questions. If there are still other questions send them and let us all learn from your questions.
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  • #28
  • Mar 11, 2017 6:16am Mar 11, 2017 6:16am
We don't have to be too picky with SL. Having too tight SL is like having no SL. The SL could be triggered easily even when your analyses are right. Some try to have fixed amount of pips for SL. It's wrong.
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  • #29
  • Mar 11, 2017 6:22am Mar 11, 2017 6:22am
Quoting cyguy
would your suggestion be to enter long at 30 or short at 70 then?
No. I was not taught that way. My using since I was taught proved that we cannot use enter at long 30 and short at 70
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  • #30
  • Mar 11, 2017 6:29am Mar 11, 2017 6:29am
Quoting aaven
{quote} Hello 9jatrader, Thanks for the input. Could you kindly elaborate on the reasoning for your statement if possible with an example. I want to understand why it is so...: "Also am avoiding taking correlated pairs. This is because a strong retracement on the correlated pairs could easily wipe account even when our positions and analyses are correct." Thanks
You could see now that it's time for EURO. It's dominating for now. If you take all in one platform as they form, by the time they start retracement or even reversal, account may not be able to stand it. All your profits would disappear. And secondly you may be emotionally ready to leave all your positions open even when your analyses tell you that it's just a retracement/adjustment
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  • #31
  • Mar 11, 2017 6:36am Mar 11, 2017 6:36am
Here is the GBPUSD I said am waiting for. Stochastic is resting and sleeping on oversold area, and there is nearby support.
Attached Image (click to enlarge)
Click to Enlarge Name: gbpusd-d1f.png Size: 42 KB
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  • #32
  • Mar 11, 2017 6:45am Mar 11, 2017 6:45am
If GBPUSD shows up with bullish body, we might have bullish trade. We're approaching a very strong support- daily, weekly and monthly. I will jump in when it has gradually left oversold
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  • #33
  • Mar 11, 2017 7:20am Mar 11, 2017 7:20am
Setting previous high for TP would be over 500 pips. I hope I don't miss the bullish move
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  • #34
  • Mar 11, 2017 7:43am Mar 11, 2017 7:43am
Here is another chart on NZDUSD, daily. I believe we know what I mean now.
Attached Image (click to enlarge)
Click to Enlarge Name: nzdusd-d1n.png Size: 45 KB
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  • #35
  • Mar 11, 2017 7:52am Mar 11, 2017 7:52am
One of the interesting things about using stochastic on overbought and oversold region is that which ever the direction we follow. That means if it breaks the support while stochastic is oversold we go short. Then failure to break it we have long trade. We should never ignore SL, in case middle band pose as a resistance and send it back to the support area
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  • #36
  • Mar 11, 2017 8:06am Mar 11, 2017 8:06am
I would say that one is like a sniper when stochastic gets overbought/oversold and there is a resistance/support,respectively, to be broken
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  • #37
  • Mar 11, 2017 9:07am Mar 11, 2017 9:07am
Quoting 9jatrader
{quote} You could see now that it's time for EURO. It's dominating for now. If you take all in one platform as they form, by the time they start retracement or even reversal, account may not be able to stand it. All your profits would disappear. And secondly you may be emotionally ready to leave all your positions open even when your analyses tell you that it's just a retracement/adjustment
Thanks 9jatrader for the explanation...
  • #38
  • Mar 11, 2017 9:55am Mar 11, 2017 9:55am
Quoting aaven
{quote} Thanks 9jatrader for the explanation...
Thank you too for joining us here.
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  • #39
  • Mar 11, 2017 10:56am Mar 11, 2017 10:56am
Am just wondering once again why some NZD pairs small movement amount to great pips on the platform. If You would measure GBPNZD, NZDJPY, EURNZD you would see what I mean. See small movement on my EURNZD is over 200 pips
Attached Image (click to enlarge)
Click to Enlarge Name: eurnzd-d1f.png Size: 46 KB
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  • #40
  • Mar 11, 2017 10:58am Mar 11, 2017 10:58am
Maybe senior guys can provide us with some answers. Am just curious.
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