Stochastic Oscillator Indicator Trading Strategy for Forex & Bina…



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Stochastic Oscillator Indicator Trading Strategy for Forex & Binary Options
Stochastic Oscillator Indicator Trading Strategy for Forex & Binary Options
Stochastic Oscillator Indicator Trading Strategy for Forex & Binary Options
Stochastic Oscillator Indicator Trading Strategy for Forex & Binary Options
Stochastic Oscillator Indicator Trading Strategy for Forex & Binary Options

The current article will acquaint you with another useful and reliable trading system which is based on the combination of a slow Simple Moving Average, Full Stochastic Oscillator and Relative Strength Index.

It uses tight stop-loss protection, while ensuring high potential profits by producing accurate entry signals. It is best practiced on a daily time frame to limit the effects of whipsaws and can be used with any currency cross.

It consists of three indicators – a 150-period Simple Moving Average, a 3-period Relative Strength index with overbought and oversold levels at 70-80 and 30-20, respectively, and a Full Stochastic Oscillator with 6, 3, 3 settings and overall the same overbought/oversold areas.

The first condition which must be met to initiate a long entry is for the 150 SMA to be below the price action, thus signifying a bull trend. Once the Relative Strength Index drops in the oversold area, look for a bull crossover of the Stochastic lines, while they are also within their oversold zone (basically you need a bull trend with both indicators showing the market is oversold and with the Stochastic displaying a bull reversal).


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Reference: https://en.wikipedia.org/wiki/Binary_option
https://en.wikipedia.org/wiki/Trading_strategy
http://binaryoptionsdailyreview.com/
http://newforex.net/

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One thought on “Stochastic Oscillator Indicator Trading Strategy for Forex & Bina…”

  1. I am using TopOption and the five minute expiry doesn't work like you are describing. When you take a trade and you choose 5 minutes for the expiration time, you have to wait for the current candle to close and then wait for 5 candles to close. When the fifth candle closes, that is the closing price. So in the example you used at 5:12, if you take the trade when the small green candle has opened, the trade expires 5 candles later, when the third red candle closes. That is too close to tell if it is a win or a loss as the difference seems to be marginal.
    If it doesn't normally work like this, then they are probably scamming me and I should change broker.

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