Stochastic Oscillator and Moving ave rage strategy in combination

Stochastic Oscillator and Moving ave rage – the combined strategy:

Because with the combined strategy two commercial systems are combined, it is valid as relatively sure. The Moving ave rage indicator is used to the inquiry by longer-term trends. At the same time registers of the Stochastic Oscillator if the market is at short notice überkauft or überverkauft. In this manner traders can recognise short-term corrections and act accordingly.

Advantages of the Stochastic-Moving ave rage combo:

• very reliable system
• the trend is always traded

Disadvantages of the Stochastic-Moving ave rage combo:

• to apply relatively difficultly
• no unequivocal ones one and climbing out brands are defined

Use of the Stochastic-Moving ave rage combination

1. The strategy is suited for all currency pairs.
2. In the Tageschart D1 ave rage indicator the long-term trend is determined with the Moving.
3. For the Stochastic Oscillator indicator it is used of the Stundenchart H1.
4. Now indicators are added in the Tageschart 3 3 Moving ave rage and the periods are put on 50, 100 and 200.
5. In the Stundenchart indicator is added of the Stochastic Oscillator.
6. The %K period becomes sedate on "14", the %D period on "3" and the slowing down also on "3".
7. In the prize field "Close/Close" is selected.
8. In the following tab. the Überkauft level is put on 90 percent and the Überverkauft level on 10 percent.
9. If the Tageschart prices indicates above EMA50, EMA50 about EMA100 and EMA100 about EMA200 and the Stochastic Oscillator at the same time the Überverkauft level from below upwards crosses you go on Long.
10. The other way round, so if the Tageschart prices below EMA50, EMA50 under EMA100 and EMA100 under EMA200 and the Stochastic Oscillator the Überverkauft level crosses from above down you go on Short.
11. There are not exactly defined Stop-Loss or take profit brands with this strategy. A risk profit relation of 1:2 is recommendable.
12. Besides, a narrow Trailing stop is absolutely recommendable.

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