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Simple Stoch Strategy

The Stochastics oscillator (5.3.3) based trading strategy is one of the simplest oscillator based trading strategies. It is working with the overbought and oversold levels of the oscillator. The trading strategy works as a fast scalping trading system and can be used in almost any chart time frame. With enough practice you can make use of this trading strategy to make fast profits in the markets. The main factor to success is that the entries (buy or sell) should only be taken after the candle closes (please have in mind the spread when placing the take profit and stop loss levels).

Simple Stoch Strategy Rules

​Long Set up
  • Stochastics gives a bullish crossover and rises from below 20
  • Buy on candle close
  • Take profit 50 – 80 pips
  • Stop loss below the most recent low
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Short Set up:
  • Stochastics oscillator gives a bearish crossover and falls from above 80
  • Sell on candle close
  • Take profit 50 – 80 pips
  • Stop loss below the most recent high

In the video you can get an impression of the strategy
Conclusion
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The Simple Stoch Forex System is very simple and ideal for scalping the markets. With enough practice traders can make use of this trading strategy to make quick profits in the markets. The main factor to the success of this trading strategy is that entries (buy or sell) are to be taken only after the candle closes while also bearing in mind the spread when placing the take profit and stop loss levels.
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