Stochastic Alert Forex Trading Strategy

The Stochastic Alert forex trading strategy takes advantage of the trend with the help of a Stochastic buy and sell forex indicator.

This strategy is suitable for all FX pairs and timeframe’s that are available on the highly popular Metatrader 4 trading platform.

Learn and download this strategy for free below:

Chart Setup

MetaTrader4 Indicators: Stochastic_Cross_Alert_SigOverlayM_cw-signals.ex4 (Inputs Variable Modified; KPeriod=30, DPeriod=12, Slowing=18), SEFC084.ex4 (Inputs Variable Modified; period=42)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day

Recommended Trading Sessions: Any

Currency Pairs: Any pair (Majors, Crosses, Exotics)

Download

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets put on display:

  1. If the lawn green upward pointing arrow of the Stochastic_Cross_Alert_SigOverlayM_cw-signals.ex4 custom indicator gets displayed somewhat below the candlesticks as shown on Fig. 1.0, it is a signal to go bullish on the fx pair of interest.
  2. If the deep sky blue vertical bars of the SEFC084 custom indicator takes position above the 0.00 level as depicted on Fig. 1.0, it is a signal to buy the asset of choice.

Stop Loss for Buy Entry: Place stop loss below trading support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  1. If the red downward pointing arrow of the Stochastic_Cross_Alert_SigOverlayM_cw-signals.ex4 custom indicator pops up above the candlesticks during a buy signal, it is trigger to exit or take profit straightaway.
  2. If during a buy signal the violet vertical bars of the SEFC084 custom indicator gets displayed, it is an indication of weaning bullish pressures, hence an exit or take profit will suffice.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the red downward pointing arrow of the Stochastic_Cross_Alert_SigOverlayM_cw-signals.ex4 custom indicator gets aligned somewhat above price bars as seen on Fig. 1.1, it is a sell market alert.
  2. If the violet vertical bars of the SEFC084 custom indicator gets aligned below the 0.00 level as illustrated on Fig. 1.1, it is a trigger to sell the designated currency pair.

Stop Loss for Sell Entry: Place stop loss above trading resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the lawn green upward pointing arrow of the Stochastic_Cross_Alert_SigOverlayM_cw-signals.ex4 custom indicator pops up below the candlesticks when a sell is ongoing, it is trigger to exit or take profit without delay.
  2. If during a sell trigger the dep sky blue vertical bars of the SEFC084 custom indicator gets displayed, it is an indication of halting bearish pressures, hence an exit or take profit will do.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The SEFC084.ex4 custom indicator is based on the SEFC indicators and is used to give traders direction to the prevalent market trend.

The Stochastic_Cross_Alert_SigOverlayM_cw-signals.ex4 custom indicator is a brainchild of Robert Hill.

It generates buy and sell signals, and issues alerts in case of the Stochastic Oscillator indicator overbought or oversold levels crossing.

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