Stochastic EMA Trading System

Stochastic EMA Trading System
Triple Screen Trading System - Part 5 - Investopedia – The ...
Stochastic can be an extremely effective and useful oscillator as part of your Forex trading system. The actual Forex trading system is a combination well thought out and very simple indicators. The signal search to know what each indicator is a good help to have good input and output. This simple trading system uses both the RSI, EMA Exponential Moving Average and Stochastics indicators. Based upon the stochastic trading system example, but with addition logic on the entry.

Graphic: any
Currency: either
Indicators: EMA 5 EMA 10, Stochastic (14, 3.3), RSI (14, 70, 30)

The Stochastic Oscillator Crossover. Trading System . The Stochastic Oscillator Crossover Trading System

Rules of entry to buy: buy when the EMA 5 EMA crosses above 10 and the Stochastic lines are heading north (top) and the Stochastic is overbought position (above the 80.00) and RSI is above 50.

Entry rules for selling: sell when 5 EMA crosses below 10 EMA and Stochastic lines are heading south (bottom) and the Stochastic is oversold position (below the 20.00) and RSI is below 50.

Output rules: when EMA 5 and EMA 10 intersect in the opposite direction or if RSI crosses the 50 mark again.

Advantages: allows filtering of inputs and therefore more successful.

Disadvantages: EMA 5 and 10 may show signs of very early exit.

Here are stochastic custom indicators you can use

Fast Stochastic.mq4 In technical analysis of securities trading, the stochastic oscillator is a momentum indicator that uses support and resistance levels.

Chaikin's Volatility StochasticM2.mq4 the Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range

DS_Stochastic.mq4 Stochastic is one of the most popular Forex indicators. Learn how to trade with Stochastic indicator at Forex Indicators Guide.