Stochastic Oscillator is almost the most famous indicator among stock traders. They are somehow addicted to Stochastic Oscillator. I believe all indicators and even trading strategies are good 1 when you know how to use them properly, and 2 you wait for the strong trade setups.

If not, you lose with any trading strategy and indicator. If not, you will lose, no matter you have the best trading strategies, indicators, software, and…. Stochastic Oscillator is not an exception. To become a consistently profitable trader, first you have to master your trading strategy and the indicators it has. Stochastic Oscillator is an oscillator that records the price fluctuations and speed which is known as momentum. Any indicator has a special formula which is different from the other indicators.

It tracks the speed of the price changes which is also known as momentum. It is set to 14 by default and most stock traders use this settings, but on MT4 platform it is set to 5. Stochastic Oscillator is an indicator to follow the price speed, not the price movements. As you see on the above chart, Stochastic is used to go up and down between the 20 and 80 levels. Stochastic Oscillator cannot be the only indicator that tells you when to buy and sell. It was not created to do that.

It has to be used along with the price actions. You have to use them along with the price actions. It is the price action that has to give you a buy or sell signal first. However, to keep the trading system as simple and mechanical as possible, we mainly focus on the support and resistance levels , but I will also show you some examples from the support and resistance lines.

You can make the signal line invisible, because we only need the main indicator line. If you are using MT4 platform, then leave the parameters to have the default settings which is 5, 3, 3. This helps you to see the strong, valid and most visible support and resistance levels better. I said weekly chart because this system works much better on this time frame and also the monthly. Indeed, all systems work on the longer time frames better and this system is not an exception.

However, I will show you some examples of using this system on the daily chart , specially to follow the trends. It is as simple as that. The most important thing in this trading system is that you locate the strongest and most visible highs and lows to plot the resistance and support levels.

You should be careful not to take the weak levels breakouts. Novice traders usually have a hard time locating the valid and strong levels. So, they locate weak and invalid levels and get in after their breakout. If you like to have it, then you should use it the way I explained above. It can go up a little and then go down to reach the oversold area again. That is why professional traders say that trading is not about buying low and selling high, or selling high and buying low.

Trading is about buying high and selling higher and selling low and buying lower. The reason is that first you have to wait for a party to take the full control. You should go long only when you are sure that bulls have taken the full control and will take the price higher. You should go short only when bears have the full control.

If you get in because of that, most probably you will lose. Stochastic is not a money sucker. This is how it works. When you go long, you should place the stop loss a little below the low price of the candlestick which has broken above the resistance level. When you go short, you should place the stop loss a little above the high price of the candlestick which has broken below the support level. That is a reasonable stop loss in this trading strategy. It depends on the case and the trade setup.

Target order is a more complicated discussion in any trading system. Entry and stop loss can have clear and strict rules, but the question which is harder to answer is the exit. Where is the best level to get out? Your target order can be from x1 to x10 of your stop loss. I suggest you to move the stop loss to breakeven when the price moves accordingly for x1 or x2 of your stop loss size. When you move the stop loss to breakeven, then there is no risk to hold the position. I suggest you not to get out with less than x5 profit.

If you choose the strong and valid levels and then you enter on time after the breakout, you can make thousands of pips. Of course you have to follow the longer time frames if you want to be such a profitable trader. To have a good understanding from the best exit levels, you have to know many other things. When you are following a trend, you should know about the Elliott Wave Theory to know when the trend is exhausted and it is the best time to exit.

More professional traders have learned to enter based on a shorter time frame trade setup, but hold the position based on longer time frame, to maximize the profit as much as possible. For example, they get in based on the daily chart, but then hold based on the weekly and monthly, when they see that the trade setup that was formed on the daily chart, turned to a strong trend not only on the daily, but also on the weekly and monthly charts.

When they are learning, they can still enter the markets based on the strong trade setups I explained above, and enjoy collecting x5 profits.

They will learn to let their profit grow even more, when they become more experienced. However, you have to note that locating and plotting the valid and strong support and resistance lines needs more experience and knowledge and is a tricky task compared to support and resistance levels.

You will have more losing positions if you want to trade the support and resistance lines. The same rules have to be applied here too. As you see, the price went down and retested the broken resistance line strongly after the resistance breakout:.

The below screenshot is self-explanatory. When it is proven that there is an ongoing strong trend, you can enter after the smaller levels breakouts on the same trend. It got broken later 2 , but then the market went sideways and hit the stop loss. So those who had missed the trend, could get in at the middle of the way.

Those traders who like to have more trading opportunities can use this system along with the other systems they use.

If they follow the weekly and monthly charts, all they have to do is spending half an hour every weekend, to locate the forming and formed trade setups, and then entering the markets at the market open on Sunday afternoons.

I have never seen an article like this before about Stochastic Oscillator. But I just want you to note that when I see the Forum I see other trading systems like Fibonacci, Ichimoku, Elliot and the indicators that members are using to trade.

You have always said that we do not need any other system but Candles and Bollinger Bands and yet I see that people forget this and like to complicate things. Because doing so we all focus on one thing. On forums, people can discuss too many different topics and ask for the other members opinions. It might be a good idea to have separate areas in the forums for LuckScout strategies and non LuckScout strategies. Chris dont know what to say but im one of them who learn somewhere the wrong way of using this indicator and what I could pick up is it hardly goes together with MACD it was confusing me.

I learned more in a few months with LuckScout than 3 years with everyone else! Thank you a thousand times, Chris! What a comprehensive article. Thank you very much Chris. I never thought about using stochastic, but this can be a great help for me to identify the stronger SR.

Since I found LuckScout, I learn something new every day. Thank you Chris to share your knowledge with us. Thanks Chris, for adding my knowledge about Stochastic indicator. Definitely it will help. Hi Chris, I am completely speechless. No language known to me to appreciate you properly. Its an excellent article and best to my known. I salute you thousand times for your great explanation along with great examples. Your articles are the best remedy to wash away the dirty thinking from the brain.

Of course you can use the indicator on the daily time frame too. You will have much better results with the weekly time frame, and monthly. Thank you for that insight. Very useful article for our better performance and confidance. Thank you my teacher. If I am wrong, please ignore. What is the correct pronunciation of stochastic? However, the price usually retests on the weekly chart, even by the next candlesticks. That is really good because you will have plenty of time to enter after the setup.

This is one of the advantages of using the long time frames. Thx so much Chris. Many times i have not gone in a trade because the stochastic i thought was not agreeing with what i was seeing. Now i understand why…thx again. Thank you Chris, A very timely article as l had installed the stochastic indicator on my charts 2 weeks ago, but with little joy.

Chris, I am learning a lot with your daily articles. For a novice trader, like me, your teachings are the holly grail! Very clear and informative thank you Chris and thank you for your time. I am getting very confused. With all of these indicators out there I seem to be just getting to know one, when another one is introduced.

Chris, can you tell me what are the basic indicators we need?? I am 68 and school is a long way behind me. We use candlestick patterns and BB on our main trading system: If I can add a further question please Chris? In my weekly screenshot the far left is your illustration of buying higher, further to the right are BB breakouts and Stochastic confirms reversals too. Stochastics should be ignored in these instances Chris is that what you mean?

Stochastic confirms the reversal signal formed by candlesticks always, when the candlestick pattern is strong. If the candlestick pattern is not strong enough and you enter just because stochastic confirms the reversal, then most probably you will lose. Clear now thank you for your clarification. Are they really strong enough? I was drawing lines only on the big highs and lows that happen maybe once a year or even less frequent.

Am i exaggerating and do i need to be more forgiving and include the smaller levels too? No, they are not too strong. They are just to follow the too strong downtrend on the daily chart. Thanks Chris for taking the time to explain things in a way that easy to understand and put to practical use. As always great article. Your reply to Linz-Stochastic confirms the reversal signal formed by candlesticks always, when the candlestick pattern is strong.

If stochastic is usually between 80 and 20 levels then how would it confirms the reversal signal formed by candlesticks pattern. I think sir you know what i want to ask. We use an indicator to filter out the bad setups. Sir, The below paragraph is from the above article. I think we have to change the wordings overbought and oversold. You can go long when a candlestick breaks above a resistance line and Stochastic Oscillator is in the oversold overbought area at the same time.

In case of the short positions, a candlestick has to close below a support line, and the Stochastic Oscillator has to be in the overbought oversold area at the same time. Thanks so much Chris, We learned a lot from you to which I am grateful for your contribution of knowledge and helping novices by giving them the profitable strategies. Having said that I would request you to highlight your thoughts on using Forex and risk management by using OPTIONS as hedging so that we would less risk and make good profits in long term.

Once again a big THANKS. Great appreciation on the vast knowledge that you carry, for learners like us if you could highlight your thoughts on controlling the risks by hedging until we are in the safe zone would be highly appreciated. Any strategies that could be used as hedging if stop loss is not used initially in forex.

By this I believe we can eliminate the risk of stoploss. You are Master no doubts. Thanks Chris for replying Iam grateful. I believe controlling the losses through hedging is the worst way. That is not a good option at all and will be ended to margin call and heavy losses finally, because when you stop losing through hedging a position, then you take new positions which can be losing too, and then you have to repeat the same here. That kills your account. The best way is that you wait for the strongest setups, and limit your risk with a reasonable stop loss.

You get out with a small loss when the market goes against you, but you recover your losses with the good trades. I always read all the articles, and mostly try everything. That said I have worked through the 5 steps to become a successful forex trader and from there I mainly only take notice of all the different strategies that does not include candlesticks and Bollinger bands.

I do combine Fibonnaci Retrenchment to help me set my target profit. I have been demo trading since November , and am currently saving up to open my first live account. Both of them are important.

Stochastic Oscillator | Articles | FxPro Help Centre

We have to consider both. Hello Chris, is the overbought on stoch, a breakout on the upper Bollinger band and vice versa? Very good article Chris, thank you very much. Step by step the forex trading becoming much more clear. Thank you for sharing your knowledge with us. Thank you once again. Is it possible to update old posts not in tune with the current methods?

As always, you put into words what we may have observed with puzzlement and even given up on. They seem popular with scalpers, whereas at this point I would be happy to trade like once per decade.

Is it better to use it with 5,3,3 settings, or slower 14,3,3; or 20,3,3? HI Chris, THanks for the great articles.. I learn so many tools and stocastic also my favorite.. I just dont know how to use it in my trading..

I saw some explanation about Stocastic on youtube,how to use it.. But maybe this indicator is not suit for me.. Any idea or solution.. Any indicator or trading system can be used on any time frame. The problem is that shorter time frames create more false signals and setups, and need more time and energy. Thank you for sharing this information. I wish I knew about this prior to that. Nevertheless, I take it very seriously. I came close to giving up on Forex trading because I screwed up so many times.

Failing has helped me to become a better trader. I look forward to that! It is experience based. You can zoom out to see the bigger picture. Revise them and delete the weak and keep the strong ones. Be patient and wait for the price to reach those levels. Thank you so much for such very educative and easy to understand article.

As a novice trader, I need your confirmation and correction on these;. There are some videos here: I think I might give it a try.

Find it more useful and reliable than macd and RSI. But the truth is in knowing how to read and use an indicator that matters.

Thanks a lot Sir. You said in this article: I see it in your dictionary but it is concise. To you wish to expand on this in the future? I already have a more detailed article about it here: Hi Chris, thanks for this great article. To locate the strongest support or resistance level we can plot the fractals on the monthly timeframe?

You think that this is possible? Have a nice day. This article can also help: When oversold does that indicate a lack of willing buyers at that higher price, thus market pressure for price to go down? When over bought does that indicate a lack of willing sellers at that price, thus market pressure for price to move upward? When Stochastic Oscillator reaches the oversold area, it means bears have taken the full control. When Stochastic Oscillator reaches the overbought area, it means bulls have taken the full control.

Stochastic is a tricky indicator. You should only use it the way I explained above, otherwise you will have a lot of losing positions.

Thank you, thank you, thank you! Besides the free education you are giving us, I found it amazing how patient and kind you are in answering our questions. Thank you so much.

When the positions stop loss is too wide to be handled by your account, then you should not take it. In terms of market reaction on that day do you think we might have another Swiss Franc reaction on or around the 30th? What I mean by this is do you think there might be a greater chance some brokers go broke financial ruin because the markets become more volatile? I understand you cannot say definitely what will happen and you cannot advise on what to do with our money leave with our brokers or withdraw it until things calm down.

I think it is such a long time that markets and the world are dealing with Greece problems, and they have already reacted to them.

The Jan 15 event was a sudden and unexpected event, and so it caused a sudden and unexpected reaction. Only in once case we will see a sudden and strong reaction. That is when the Greece problems ends to sudden and unexpected changes by big central banks, which is so unlikely. I have a suggestion for a future post. I guess you have heard of it. With this system, you have to use a MACD indicator with the weekly chart to decide whether the market is going up or down.

The key point here is that, knowing in which direction is the market going in the long term chart, you can filtrate the bad signals that the Stochastic gives you. If the weekly is pointing up, you will buy when the Stochastic is in the oversold area. And, if the weekly is pointing down, you will sell when the Stochastic is in the overbought area. But I would like to know what you think about it, if you have tried it or maybe you know someone who has.

It works like a charm in back-testing. We can try it in real time trading to see whether we can act like when we back-test or not. We need few MACD bars on the weekly chart first that show a special direction clearly. Then we should refer to daily and wait for Stochastic. It seems a candlestick signal along with stochastic helps a lot to enter at the right time based on the daily chart. I only tried it for some weeks a few months ago but wanted to give it another go now that I have more time at the end of the day.

That is a great idea. If you like to try this system for your own use, you can do it on a demo account and then share the result with us here on LuckScout if you like. I appreciate it, and I am ready to assist. Your delivery is just fab! Like you said in one of your articles, novice traders try a lot of indicators until they know what works for them. I know some jaws are dropping now, hahaha. Now seriously, since I intend to trade the trends, I will concentrate on the RSI and this Stochastic indicator on my main account and see how it goes.

Thanks chris, These are very well explained instructions. I agree with you that any system can make money in forex if used properly and with a lot of patience i. All ones needs is to have a smart tutor like yourelf. No body knows which is the best Oscillator parameter. In this situation Candlestick confirmation and trend line analysis is needed to go for entry. Chris, Please give deep explanation.

Which is best parameters as per different time frame? Hello Chris, Thank you for this new tool. May I ask a question about the use of it in shorter time frames?

Do you think we could use the stochastic oscillator to confirm these breakouts? Hi Chris, I noticed some of the GBP pairs look like good setups as per the weekly stochastic views. Can you comment please? Hope you are well. I have a small clarification — is the direction of the oscillator important as well? For example,if there is a resistance breakout, and the oscillator is above the 80 mark, does it matter if the oscillator is heading up or down?

Just wondering whether a downward trending oscillator would be an indication that the break out would not be as strong and if the indicator was trending upwards. Just being at overbought or oversold area means that most probably bulls or bear have taken the full control. This is all we want to know from Stochastic. Hi Chris, its hard to stay patient waiting for the too strong continuation or reversal setups. Therefore jumping on existing trends is the next thing I will try using your suggestions.

Great article again, thanks a lot. My language is not rich enough to thank you for what you are doing for us! This is further to the above post. You mean that the level I marked in red at Can you pls enlighten me on this pls?

It would have given me more confidence to enter. That means the price action we wanted is formed. There does not seem to be a pattern or anything special about them. Just plain Bear candlesticks. As the article title says, this is a mechanical system which is based on the level breakout and Stochastic. Every trading system must have a way to determine when this is the case. The two systems you are comparing each have a different method of doing that. Nothing else is needed, so no candlestick pattern is needed in this mechanical trading system.

Almost in all cases of the strong level breakouts, Stochastic is in the over area, no matter which of the routine settings, from 5 to 14, we use. Thanks Chris for such an insightful article. I use to fall in the group that used overbought to sell vice versa. Now I know better and will practice this method.

One my favourite points in the article is this: It seems that you have skipped or over look my question above. Will you please answer it? I think I have answered your question. Please check one more time. If I have not, then please kindly ask again. Please read the other articles I published after the above article to see more examples: That is enough when it is clearly in the overbought or oversold area. Yes, you can do that. But please note that it makes the work more complicated and chances are you miss the movements.

I prefer to enter when I see a setup on the same time frame. At least for a couple of months, I have to do it. I have total of 83 positions and I only won less than 20 of it of course I hold my winning positions.

Obviously, I over-trade and set my risk too high. Not to over-trade for a novice trader is much harder than said. For now, I analyze the charts with my computer for the longer time frames, but I wait and take my position on the shorter time frame of the same chart with my mobile phone. I used it to calculate my positions. Congratulations for your excessive success. You are doing good.

Keep on repeating your success on your demo accounts for now. This is really great and is what any trader has to achieve. Success rate which is the ratio of winning to losing positions is not important. I followed all the rules and stay disciplined as much as I can with those rules. I also look at the big news sometimes for confirmation. The psychological part is the hardest one. I hope I will do much better this month. Following several systems at the same time can make novice traders not to stick to the systems rules.

It makes it harder to develop the developing of the trading discipline. I admit, for the first month, it was hard to stick to the system. Here is what I do;. If the price is too far from the 50SMA, exhausted or ranging, I wait for a too strong trade setup the main system. If it is a healthy trend, I wait for DBB BB1 breakout, a continuation setup on the middle band or 50SMA. Until it become a habit and there will be no struggle anymore.

Hairro, May I suggest that you R-E-L-A-X Pick 1 one system and for get the others for now. Just demo ONE SYSTEM. By jumping around and mixing system, you are only delaying your success.

You are changing systems because you want to be successful, but you never will be changing and adding to systems. I do still religiously stick to the system. It is just that, I followed all the trading system outlined here; https: It is more mechanical and less technical, and you can use it as a second trading system: Please understand you have the right to make choices in this life.

YOU DO NOT HAVE TO SET A WIDER STOP LOSS for any trade you take. PASS ON THE TRADE another one will come.

Bollinger Band Breakouts

It no shame to pass on a trade. It is control by the larger time frame. So for this reason I would suggest you do not look at the smaller time frame unless you are going to trade it. It will only confuse you.

I admit, I was obsessed with the smaller time frame at first. However, I do not trade the short time frame. He did mentioned that he enter the daily chart based on the shorter time frame here; https: May I suggest you reread the article you are referring to.

He never said he enter entered the market based on anything from the 15 minute time frame. This is what he said: What he did was compare the 15 minute with the daily. Please take your time and read it slow for better understanding and I think you will that is what he did. Only compared the two time frame on the same trade. Please know that trading the low time frame is a lot of work and cost you more because you pay for every trade you take.

So the question WHAT IS YOUR TIME WORTH TO YOU? I do not trade the short time frame.

Stochastic, RSI and MACD Positions in a Bollinger Bands Squeeze Breakout

I trade the daily chart based on the short time frame, but closed my trade based on the daily of longer time frame.. I do not simply trade based on the short time frame if there is no trade setup on the daily chart. I wait just by looking at my mobile phone and took my position immediately after a resistance breakout on the shorter time frame.

Hi Chris This question might be a little bit off track. Would you be able to explain as how important the correlation is trading the Forex Pairs. For example, when all NZD pairs form a short trade setup, you take only one of them which is the strongest.

Therefore, if it goes against you, you lose only in one position. But if you take all of them, they can wipe out your account. Thank Chris, I never read or tough to use this indicator this way. How is having high momentum reserved for strong level breakouts? To break through the strong levels, the markets need two things. The first one is the money flood that makes the price move. The second one is the speed of the money flood.

If they spend a lot of time, then the dominant party gets exhausted and changes its direction, and so the price changes its direction before it breaks through the level.

Weak levels can be broken much easier. In most cases, it is only us who see the weak levels. With big movements like the big candle on the GBPCAD for this week, I get nervous as to when to enter a trade for fear of a correction, in this case a downward or sell trade. The weekly candle has closed above the diagonal resistance line on the weekly and the stochastic remains above If you have time could you analyse it please? Both the weekly and monthly have moved above the upper bollinger bands, though the daily is showing some possible signs of slowing down.

How do I create a trading strategy with Bollinger Bands® and the Stochastic Oscillator? | Investopedia

To me it looks like a good long trade using the stochastic weekly method but it was such a big movement up for this week I get fearful it will correct itself. Indeed it was the So you had to go long after the Thanks Chris for the answer to my question about the GBPCAD. Another question is whether it may be a good time to re-enter the NZDJPY after your recent stochastic assessment where it was a successful sell trade.

I did enter that trade and made some good profit. Currently, the weekly candle of the 5th July went up to retest the last diagonal support area and this week the candle has dropped to fall and close below the previous horizontal support level The Stochastic is below 20 still so could this be a good re-entry on that sell trade? To enter again after a good trade setup, we have to have another good continuation setup. I am still holding my own position because I believe it can go much lower based on what we have on the monthly chart.

On Friday I have put an pending order z z. Sorry I have some problems with my phone… I wanted to said that I have put pending order at Do you think that this is too dangeres? Last few daily candles looks like a small wave to downtrend? I think you said you are already in, right? Can you explain a little bit more about why it is not a good time to enter, based on the weekly chart and the stochastic mechanical system rules? Is the level that Mark mentioned not strong enough? Thanks Chris, this is where I still need some education.

For example, if you can spare the time to explain, if you say you feel confident that the price will continue lower on the NZDJPY, why then do I not look for a good opportunity to enter again with a sell trade? I realise the first day of trade for this coming week may not be the best time because we have been analyzing the weekly chart, but what if one day this weak presents itself with a good candle set up or perhaps a good candle and BB setup?

Would that meet your requirements for a possible reentry? Thank you so much for your time and patience. We can always wait for good opportunities to enter the market and follow the trend when it is strong. But we need to see a good continuation setup to enter. I have taken two position and one is already close. The second one do not have TP and I have already put the SL lower than breakeven to be safe.

Because of very nice trend which looks stabile I wanted to take another position, of course if there will be breake out. If a too strong continuation signals forms, we can take another position while the other position s are safe SL is moved to breakeven. That is not greed. This is what we have to do as a trader.

For example stochastic value is 21, and weekly support has been broken and price has closed below the support, are we allowed to take the setup? It is what I have explained above. Thanks for your answer Chris. I would like to take this opportunity and thank you and to your colleagues for all the work that you are doing for all of us. Thanks for the reply. I have learnt many things from you and one of the most important one is to keep things simple and easy to understand. They usually open with wide gaps even on daily timeframe 2.

They tend to be bullish most of the time. These 2 reasons make me confused on how to trade stocks especially since you once said that we could trade stocks the same way as forex.

Would you mind to explain this? Thank you very much. All we know about candlesticks and technical analysis has come from stock trading. Gaps are not any problem at all. You have to wait for the same candlestick signals to form. When the market is strongly bullish, you have to wait for a too strong continuation setup to enter the market and follow the trend. Like forex trading, good and strong trade setups hardly form on the stock market. We need a much stronger sell signal to go short.

Just wondering if stochastic can be used on the 4hr and 1hr? All indicators can be used on all time frames. I think is it because levels are fixed and trendline can easily be shifted but not broken? Chris in this article you have mentioned that you will explain how to use this mechanical system on shorter timeframes like Daily as well. So this is my perspective of using the Stochastic and the price action on the Daily chart: There is no difference in using the different system on different time frames.

The same rules can be applied on all time frames. In some instances, I know the level is strong but the market reacts choppy when it reaches that level. One solution is referring to the longer time frames like weekly and monthly.

They have less noise and they get choppy harder. Candlestick can ride the upper or lower bands for such a long time. Another BIG thanks from here mentor. That is true, because Stochastic shows the price speed which is the amount of the money flooded in the market within a special period of time. This means volume too. I see that you mention Stochastic indicator a lot. But how about RSI in comparison. I find Stoch whiplash a lot more, as it is more reactive than RSI.

I think I answered this question before. Please kindly check your previous comments and let me know if you still have any questions. It seems counterintuitive to go short when the stoch says oversold vice versa for long. Does RSI get the same treatment go short when RSI says oversold? Perhaps you explained this already and I missed it? Stochastic reaches the oversold or overbought area very easily and after forming a few bearish or bullish candlesticks.

Thanks for this great article. Please can we say that other oscillators work in this faction like CCI, MACD, RSI, etc. Thank you for your honest and mentoring desire towards us. And do I need to tweek it in the future? I mean when do I know that something does not work anymore and I need to tweek it? There are so many articles on plotting support and resistance levels and lines: This is great Chris, i love this is a great method of trading just seen the proper use of Stochastic Oscillator.

I learned more in a few months with LuckScout very good teaching Thank you a thousand times, GOD bless you Chris Pottorff. Dear Chris Diego is not the only person that can not get the E-Book. I have been trying many times without any success. I have follow all the instruction provided to me and I am still waiting.

Any reason as why I have not been receiving any links since December last year. My first link this year, came this month. You can download it here: This article seemed like great insight into Stochastics until I read this other article which seems like a complete contradiction.

While the other page https: Can I use this system with the lines I have been drawing on the candlesticks body and tails? I have noticed that the are also very strong. I would very much like to send a screenshot. But I can not get there to add one in the commentbox. You can learn it here: Instead of horizontal lines, which are harder to find correctly. You can also use a screen shot tool windows has preloaded.

Just look in your apps section. Thank you for this very useful article as always. Sorry could I ask that you take some time to help me look at this? I located a resistance level at 1. The Stochastic however is only very slightly above 80 or on the dot at Your explanation of the Stochastic oscillator is totally enlightening. I do have a question. My platform offers two versions of Stochastic indicator: Does it matter which one I use? Just wondering if Stochastic oscillator can be of any help in confirming trades using candlestick reversal pattern?

It causes you to lose if you use it to confirm the reversal patterns. I have 0 and 1. How can I know which line is the signal line? This is one of my favorites! I use the system from time to time to time as a extra check off for some of my trades.

Thanks for sharing so freely valuable information every post. It is so refreshing to be able to promote something that is first class and actually helps people. Before discovering this movement I had lost my way. Your vision and actions inspired me to take a look at myself on a deeper level and realize I had become self centered.

And gave me an opportunity to do something for others in a positive way. This really is a great article, Chris. It absolutely opened my eyes to how the Stochastic should really be used.

I love this trading system as it is as simple as possible. Leave a Reply Cancel reply:. Your email address will not be published. Notify me of followup comments via e-mail. You can also subscribe without commenting. Get Our New E-Books For Free. A Mechanical Indicator for All Traders By: Stochastic Oscillator , Trading Strategies Last Updated: Enter Your Email Address and Check Your Inbox: LEARN A PROVEN BUSINESS PLAN.

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