Sexy Stochastics: The Setup
Sexy Stochastics: The Setup
Indicators in use :
Stochastic Oscillator
NonlagMa V5
Ma CrossOver signal
Heiken ashi MA
The setup :
1st stochastic :
k% 20
d% 10
slowing 20
2nd stochastic
k% 50
d% 10
slowing 20
3rd stochastic
k% 5
d% 3
slowing 3
0-9-0-3-1-0-0.0
Colors : Yellow / Blue / Red
Width : up to you, I use 3 for better lisibility
1-5-0-8
Those settings correspond to a signal on a cross of 5EMA (exponential) and 8SMA
(simple) applied on close price
colors : Blue / Red
Width : again up to you, I use 3 to get a big fat arrow that I cannot miss
1-3
Colors : Red / Royal Blue / Red / Royal Blue – or whatever color you like
This strategy works on anytime frame and pair. There is a bit more in the exit strategy
about this.
SAFE ENTRY
First indication:
What you need to do is first look at the 20 and the 50 and see what they are doing. this
is not necessary but when the 20 is above the 50 then thats our first hint the trend is
up.
When the 20 is below the 50 then trend is down.
Sometimes, they are really close to each other which should make you cautious about
taking trades.
Second indication:
You want the 20 to be crossed down with its signal line and the 50 to be doing the same.
If both are crossed down with their signal lines then price is trending down and we look
to sell.
Vice versa for when they are crossed up.
Third indication :
The NonlagMA is flat or is trending in direction you plan to take the trade (blue for
buy, red for sell )
When the 20 and the 50 have crossed their signal lines down, we look at the 5.
We want the 5 to go into overbought if the trend is down. Basically we are looking for a
pullback. When the 5 cross back down, we then either wait for the nonlagma to change
color or go trendy in direction we will take the trade. If a nice tiny little consolidation
formed and 20 and 50 are trending down and nicely then enter at that even if the 5
didnt make it very high.
If this setup is confirmed, we take the trade at the end of the candle.
Rules are exactely the same but you completely ignore the 50 and focus only on the
stochastic 20 and 5.
The red circle shows the aggressive trade based only on the stoch 20 and 5. As you can
see on the stochastic window, the 50 are conflicting with the 20, yet the trade is very
good and produce much more pips than the trade circled in green.
EXIT
The exit is in fact the place where you are pretty free.
My strategy is not the best but it gives repeatable results which is what everyone
should focus. The good point is that it is simple to follow and apply.
The MA crossover signal gives you the exit. Plain and simple.
On a buy order, wait for the formation of a red down arrow and exit at the end of the
candle (or before if the trade is really going against you )
Absolutely something ! ^^
It is a very good tool that give an easy view of the strengh of a move. The bigger the
body is, the further the price will go (up or down ).
This indicator will give you a very good indication on the fact that an exit arrow is about
to form.
If you don’t have a target, you can use my exit strategy. Otherwise you can use
fibonacci extension, pivots, crystal ball or astrology. This is your business not mine.
Boxingislife strategy is an entry strategy (by the way that would be great if someone
could work on an exit strategy because there is so many entry strategy but few exit
strategy )
For your stop loss, this is again your business and it depends on the pair you are
watching. Take note that this strategy has a return of 70% with good profit (400+
pips/month for 1 lot on EURYEN) with the safe entry and 60% and very good profit
( more than 550 pips/month for one on EURYEN )