Stochastic rsi

Stochastic rsiStochastic RSI

The Stochastic RSI combines two very popular technical analysis indicators, Stochastics and the Relative Strength Index (RSI). Whereas Stochastics and RSI are based off of price, Stochastic RSI derives its values from the Relative Strength Index (RSI); it is basically the Stochastic indicator applied to the RSI indicator.

As will be shown below in the chart of the SP 500 E-mini Futures contract, the Stochastic RSI gives more profitable buy and sell signals and overbought and oversold readings . than the Relative Strength Index:

In the chart above of the E-mini SP 500 Futures contract, the RSI indicator spent most of its time between overbought (70) and oversold (30), giving no buy or sell signals. However, the Stochastic RSI used the RSI indicator to uncover many profitable buy and sell signals.

How to interpret the buy and sell signals of the Stochastic RSI is given next in the chart of the SP 500 E-mini:

Stochastic RSI Buy Signal

Stochastic RSI Sell Signal

Sell when the StochasticВ RSI crosses below the Overbought Line (80).

The Stochastic RSI is an effective and potentially profitable use of the popular Stochastic indicator and RSI indicator. To read more about the Stochastic indicator and the RSI indicator, click the links below:

Forex trading strategy#3(stochastic high-low)

Forex trading strategy#3(stochastic high-low)Forex trading strategy #3 (Stochastic High-Low)

Submitted by Edward Revy on February 28, 2007 - 13:54.

Forex systems which adopt a Stochastic indicator for monitoring the price provide some very good tips about the situation on the market for traders that are willing to see it.

Currency pair: Any.

Time frame: Any.

Indicator: Full Stochastic (14, 3, 3)

Entry rules: When Stochastic has crossed below 20, reached 10, and then crossed back up through 20 – set BUY order.

Exit rules: close trade when Stochastic lines rich the opposite side (80 for Buy order, 20 for Sell order).

Disadvantages: needs periodical monitoring. Stochastic is suggested to be used along with other indicators to eliminated entering on false signals.

Trading strategy stochastic

Trading strategy stochasticTrading strategy Double Stochastic

By doubling on Stochastic analysis we are doubling on trading accuracy However, one should remember that with each new Forex tool added complexity can appear, and a very complex approach is not always good.

Strategy Requirements:

Currency pairs: ANY

Time frame chart: 1 hour, 1 day

Indicators: Full Stochastic (21, 9, 9) and Full Stochastic (9, 3, 3).

Entry rules: When the Stochastic (21, 9, 9) lines’ crossover appears – enter (or wait for the current price bar to close and then enter). It will be the major trend.

Look at Stochastic (9, 3, 3) to anticipate swings inside the main trend and re-enter+ the market again – additional entries. Also ignore the short-term moves Stochastic (9, 3, 3) that signal for exit – do not exit early until Stochastic (21, 9, 9) gives a clear signal to do so.

Exit rules: at the next cross of major Stochastic (21, 9, 9) lines.

Advantages: using two Stochastic indicators helps to see the major trend and the swings inside it. This gives more accurate entry rules and gives a good exit rules.

Disadvantages: needs constant monitoring, and again we are dealing with a lagging indicator.

Good luck Forex trading !

Forex trading strategy#40(macd fast stochastic)

Forex trading strategy#40(macd fast stochastic)Forex trading strategy #40 (MACD + Fast Stochastic)

Submitted by chrisforextrader

Simple Strategy. Using Slow MACD Fast Stochastic.

Timeframe: Any


Market Action: EMA21 + EMA55

Price Action: EMA5 + SMA8

MACD: 21 55 8

Stochastic: 8 3 5

This strategy is very simple and successful but will not get you in at the beginning of the move or exit at the end but will give a high success rate.

When the MACD Line and Signal Line cross, wait for the Stochastic to cross in the same direction. (Don`t trade if Stochastic in overbought/oversold zones)If you are an agressive trader you can enter when the MACD and Stochastic cross at the same time, otherwise once the MACD has crossed, wait for the Stochastic to cross before entering. (The MACD must cross first!!)

Exit the trade when either the price action is clearly showing a change in direction (Long - Lower Highs) - (Short - Higher Lows) or the MACD lines cross back.

Purple = MACD/Signal Line Cross. Red = Stochastic cross / Entry. White = Exit

How to use stochastic oscillator in forex

How to use stochastic oscillator in forexHow to Use Stochastic Oscillator in Forex

The Stochastic Oscillator was created by George C. Lane and introduced to the trading community in the late 1950s. It was one of the first technical indicators used by analysts to provide insight into potential future market direction and is based on the premise that during a market uptrend, prices will remain equal to or above the previous period closing price. Alternatively, in a market downtrend, prices will likely remain equal to or below the previous closing price.

Using a scale to measure the degree of change between prices from one closing period to the next, the Stochastic Oscillator attempts to predict the probability for the continuation of the current direction trend. Traders look for signals generated by the actions of the stochastic lines as viewed on the stochastic scale.

Stochastic - A Greek word meaning "guess" or "random" that in this context, refers to the task of predicting a future state based on past actions.

Renko stochastic system for metastock

Renko stochastic system for metastockRenko + Stochastic System for Metastock

Renko + Stochastic System for Metastock

Dear friends,

I have ?created? a system based in Renko and Stochastic. I think is really powerfull because it can detect the up and dowtrends and it filters very well when market goes lateral.

I have tested the system with blue chip stocks with high volume also in index and all is ok. It works poorly with low level stocks.

First of all open a daily chart in Metastock and put the prices in Renko style. Best renko brick size will be what Metastock calculates by default.

Note that in this kind of chart, only price matters, not the time.

Next, add a Stochastic indicator with K% (Time=8, Slowing= 3) and %D (Time=3 Style=invisible) values. Draw horizontal lines +20, +40, +60, +80.

Rules are :

If stochastic rises to more than 60 and renko turns white, then BUY

If stochastic falls to less than 40 and renko turns black, then SELL

If stochastic rises to 60 or more but falls under 60 again, and when falls renko turns black, then SELL

If stochastic falls to 40 or less but rises over 40 again, and when rises renko turns white, then BUY

Well, you can test by yourself and realize that is a great system, but I would like to go further. I?d like to test it in the Metastock?s System Tester so I search in google and I found this indicator:

Bulli Renkoline


K:= LastValue( Fml( Bulli RenkBoxSize) ) ;









How to use stochastic indicator in forex trading the best binary options trading platform

How to use stochastic indicator in forex trading the best binary options trading platformHow to use stochastic indicator in forex trading The Best Binary Options Trading Platform vbdesigngroup

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How to use stochastic indicator in forex trading The Best Binary Options Trading Platform vbdesigngroup August 3rd, 2015

5min forex scalping strategy with stochastic and supertrend indicator

5min forex scalping strategy with stochastic and supertrend indicator5 Min Forex Scalping Strategy With Stochastic And Supertrend Indicator

Benefit from the 5 min scalping fx strategy with the special Supertrend Metatrader 4 indicator. There are only a few steps required to open buy and sell trades with a 10 pip profit target.

Indicators: SuperTrend, Stochastic Oscillator (%K period: 7, %D period: 3)

Preferred time frame(s): 5 Min

Trading sessions: London, Us

Preferred Currency pairs: EUR/USD, GBP/USD, GBP/JPY, EUR/JPY, AUD/USD, USD/JPY

USD/JPY M5 Trading Example

Our system provided us with 3 profitable buy entries along an up trend. Total profits: 30 pips. One open trade at 104.86.

Trading Rules

Price has to trade above the SuperTrend indicator (green line)

Stochastic touches the 20 level (or go below 20)

Stochastic blue line crosses the red dotted line from below

Price has to trade below the SuperTrend indicator (red line)

Stochastic touches the 80 level (or go above 80)

Stochastic blue line crosses the red dotted line from above

This is your sell entry signal. Place stop-loss 1 pips below the declining SuperTrend line.

Macd-stochastic double cross system

Macd-stochastic double cross systemMACD Stochastic Double Cross System

What would happen if we combined the indicators from different systems? Would they work together to make a stronger system or would they work against each other?

I recently covered a MACD Trading System and a Stochastic Trading System. Combining these two systems can give us stronger signals. This should, in theory, help to reduce false signals.

MACD Stochastic Double Cross System

Once again, we will use the 200 unit simple moving average (SMA) to define the direction of the long term trend. It is always better to trade in the same direction of the general trend. Using the 200 unit SMA here will keep us from attempting to swim against the current.

Basically combining the two individual systems, this system will look for a MACD cross signal within two days of a Stochastic cross signal. Due to the nature of these indicators, it is important that the Stochastic cross happens first.

Targeting the situations where both systems agree should isolate only the very strongest signals, thus increasing the win rate.

Trading Rules

Chart and Instrument: Any

Period: Any

Market Condition: Trend

Go Long When:

Price Closes > 200 Day SMA

Asd forex

Asd forexStrategy 11 Scalping with Stochastic

Time Frame: All

Currency Pairs: All

Indicators: WMA (10), SMA (20) (SMA = Simple Moving Average, WMA = Weighted Moving Average and Linear Weighted Average), Stochastic (10,6,6), RSI (14) MACD (24,52,18 )

When the moving average of 10 period crosses the moving average of 20 periods upward, The Stochastic has upward trend, the RSI has a value greater than 50, and MACD is greater than zero, then we would be entering with a order of buy. We will take profits when the MACD reverse its trend

Sell ??Signal

When the moving average of 10 period crosses the moving average of 20 periods down, The Stochastic has downward trend, RSI has a value less than 50, and MACD is less than zero, then we would be entering with a sale. We will take profits when the MACD reverse its trend.

One of the first indicators on that we have to concentrate, is in the stochastic, when it reaches its end points 20 or 80, we would be seeing a change of trend.

Ema rsi stochastic forex trading strategy

Ema rsi stochastic forex trading strategyEMA RSI Stochastic Forex Trading Strategy

Enter a BUY position when the 5 EMA crosses the 10 EMA upward, with the Stochastic lines surging northward (up) and ensure that the Stochastic lines are not aligned in the overbought region (above the 80.00 mark). The third indicator is the RSI, which should be in a region above 50.

Place Stop Loss below the candle that introduces the 5 EMA 10 EMA crosses in the opposite direction

Exit/Target Profit:

Take profit or exit the trade when the 5 EMA cross the 10 EMA downward and normally this cross is situated above the earlier cross that signaled the entry.

EMA-RSI-Stochastic Forex Trading Strategy Buy Signal

The example above shows conditions for a buy entry with the red arrows pointing to the 3 points, showing the 3 conditions necessary for a buy entry. On the chart we have 5 EMA represented by the red line, while the 10 EMA is the green line. The 5 EMA crossed the 10 EMA upward, the RSI surged upward and is aligned above the 50.000 mark and the Stochastic lines point northward but not in the overbought regions (above the 80 mark).

Go short when the 5 EMA crosses the 10 EMA downward, with the Stochastic lines heading downward as well (but not in the oversold region – 20) and the RSI is below the 50.000 mark.

Place Stop Loss above the candle that introduces the 5 EMA 10 EMA crosses in the opposite direction.

Exit Strategy/Take Profit:

Take profit or exit the trade when the 5 EMA cross the 10 EMA upward and normally this cross is situated below the earlier cross that signaled the entry.

EMA-RSI-Stochastic Forex Trading Strategy Sell Signal

From our example above, the short signal was entered at the instance of the EMA crosses, downward Stochastic lines movement (but lines not in the oversold region – 20) and the RSI below the 50 mark.

Stochastic oscillator trading strategy pdf

Stochastic oscillator trading strategy pdfStochastic Oscillator

Step stochastic indicator is on this post. This is the only correct (non-repainting, non-deformed) version of step stochastic that exist in any platform.

Divergence using Stochastic . some general information about it was collected on this thread forex-tsd/indicators. indicator. html and some of them are on this post .

painting the past . Stochastic is not paiting the past. But we need in some systems for this indicator to be painted the past. Read some exotic explanation/request forex-tsd/manual-tra. system-58.html

how to understand the price movement using 3 Stochastic indicators .

- template attached (M5 timeframe). It was taken from asctrend M5 informational template from elite section here .

- some other informational templates about price movement understanding are here .

Multi Timeframe Stochastic :

- MTF stochastic momentum indicator is here ;

- Stochastic_Standard_4TF_cja updated indicator: this post .

Stochastic with alert is #MTF_Stochastic1.1 with alert is here ; #MTF Stochastic with alert is here ; stochastic with alert EA is here. stochastic with alert thread .

- Many Stochastic indicators in one page collected . is here .

StochHistogram indicator is here .

- StochHistogram indicators with alert (2 indicators) are on this page .

At this page you can find a strategy or system that is easy to follow with your daily trading schedule

and that can be applied successfully with your account balance size and download MT4 Forex indicator

that can be attached to the MetaTrader Forex trading platform

to boost your Forex trading performance.

100% Free - Stochastic Oscillator Trading Strategy - it's an interesting system with a rather low fail rate.

It's based on a standard Stochastic Oscillator indicator, which signals a trend fatigue and change.

That means that you will almost always enter on pull-backs, guaranteeing rather safe stop-loss levels.

Simple to follow. Only one standard indicator used. Safe stop-loss levels. Take-profit level isn't optimal.

Strategy Set-Up

Any currency pair and timeframe should work. But longer timeframes are recommended.

Add a Stochastic Oscillator indicator to the chart, set its %K period to 14, %D period to 7 and slowing to 7, use Simple MA method.

Entry Conditions

Enter Long position when the cyan line crosses the red one from below and both are located in the bottom half of the indicator's window.

Enter Short position when the cyan line crosses the red one from above and both are located in the upper half of the indicator's window.

The chaosrift

The chaosriftSimple Scalping using the 9,4,3 Stochastic

In this article I will be sharing a very simple Forex trading system. This can be used on the 1 minute or 5 minute chart and if done right, can prove itself to be very profitable.

Future plans: This is my first “trader’s” strategy. My plans for this are to set out a trading strategy and to also accompany it with a Metatrader 4 Expert Advisor. We’ll start simple and build up a strategy from here.

Stop loss and take profit

The most challenging thing for a trader is when to let go and sell, be it a loss or a profit. When executing the order, set your stop loss to be about 10-20 pips and the Take Profit to be about the same. This way you have an even up/down with a minimal loss. The lower the spread the better. Under 2 pips is ideal. Most major currency pairs (USDJPY, EURJPY, USDCAD) have low spread.

The Stochastics

Especially for beginning traders, what to set each indicator to can be a confusing and daunting task. There’s a million settings and combinations that’ll make anyone’s head explode. The following are simply guidelines to push you to your own path.

Stochastic 9,4,3. This stochastic is use for determine the buy and sell trading signal in short term time frame. M1 to M15.

Stochastic 12,4,12. This stochastic indicator is use for identify the buy and sell trading signal in medium term time frame. M30 to 1H.

Stochastic 24,4,24. This stochastic indicator is use for identify the buy and sell trading signal in long term time frame. 1H to the daily.

Trade rules

Now that we’ve established a simple setup for the Stochastic, we need to define clear rules of when to buy, or known as Short/Long.

Go Long: When all of stochastic oscillator lines are in oversold level (Under 20), and the signal line crosses over the main line in an upwards move.

Go Short: When all stochastic oscillator indicators are in overbought level (Over 80). Open a short position (sell order) and hope it hits the pips quick.

Forex scalping strategy with stochastic oscillator

Forex scalping strategy with stochastic oscillatorForex Scalping Strategy With Stochastic Oscillator

High frequency scalping with the Stochastic trading oscillator. This strategy provides you with several trading opportunities every day. Were looking for a modest 10 pips price objective. Find the complete trading set up outlined below. Please feel free to experiment with the different settings.

Scalping Setup

Indicators: Stochastic Oscillator with default settings, Fisher indicator

Preferred time frame(s): 1 min

Preferred Currency pairs: Low spread pairs (EUR/USD, GBP/USD, USD/JPY, AUD/USD,) with medium to high volatility.

EUR/USD 1 Min Chart

As shown in the EUR/USD chart above, the strategy provides us with 5 valid buy trading signals in just 2 trading hours during the Asian session. Three trades already closed for the 10 pips each (30 pips total). Two trades remain open until target is reached (or stop hit).

Trading Rules

Fisher indicator green bar

Stochastic oscillator (5,3,3) reaches 80 level

Execute long trade! Place 10 pip stop loss (or below previous swing low) and exit the trade for 10 pips profit.

Go short now! Place 10 pip stop loss (or above previous swing high) and exit the trade for 10 pips profit.

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Amibroker afl kdj indicator

Amibroker afl kdj indicatorAmibroker AFL KDJ Indicator

Amibroker AFL KDJ Indicator

Amibroker AFL KDJ Indicator Stochastic Oscillator is a momentum indicator that measures relationship of close with high low range over defined number of days. KDJ indicator is an extension of Stochastic oscillator. KDJ has been developed from Stochastic Oscillator and includes one more J line along with the traditional D and K lines. Along with D K, J line assists traders in identifying overbought and oversold markets. KDJ indicator can be used for devising trading strategies. Either a trader can buy when all lines (K, D,J) are below 20 and sell above 80 or a trader can use J line to construct a momentum based technique. Trading strategy using this indicator will be explained later. KDJ is better than stochastic in identifying overbought and oversold levels but it is mainly useful for identifying swing moves and not short term moves.

Amibroker AFL KDJ Indicator Construction of KDJ

Construction of KDJ indicator is fairly simple. To understand the KDJ indicator, it is first necessary to understand the construction of stochastic indicator. Stochastic indicator consists of K and D lines which move between 0 and 100. K line in the stochastic indicator is,

K = ((Current Close Lowest Low) / (Highest high Lowest low))* 100

Lowest low and Highest high in this case is the low and high over the look back period defined by a trader.

D line in the stochastic indicator is simple moving average of the K line. Usually D is 3 day simple moving average of K line but it depends on what trader wants to choose. We have used exponential average.

D = N day simple moving average of K line where N is usually 3 or a value decided by the trader.

Now that construction of Stochastic indicator is over, it is time to introduce the J line. J line in the KDJ indicator is nothing but the divergence of D value from the K value. Formula to calculate the J line is,

J = (3*D) (2*K)

In the J line, weightage of D is more when compared with weightage of K. D line is clearly more important as it is the moving average of the K (fastest) line. In the KDJ indicator, K is the fastest line and J is the slowest line.

In the next post well show how to use this indicator in developing a viable trading strategy.

Amibroker AFL KDJ Indicator