Forex Ribbon Trading Strategy With Stochastic Oscilltor and MACD is a trend momentum trading system because is based on the trend indicators and momentum indicators.
What is Stochastic Oscillator indicator ?… In technical analysis of securities trading, the stochastic oscillator is a momentum indicator that uses support and resistance levels. Dr. George Lane developed this indicator in the late 1950s. The term stochastic refers to the point of a current price in relation to its price range over a period of time.
A technical momentum indicator that compares a security’s closing price to its price range over a given time period. The oscillator’s sensitivity to market movements can be reduced by adjusting the time period or by taking a moving average of the result. This indicator is calculated with the following formula:
%K = 100[(C – L14)/(H14 – L14)]
C = the most recent closing price
L14 = the low of the 14 previous trading sessions
H14 = the highest price traded during the same 14-day period.
%D = 3-period moving average of %K
The theory behind this indicator is that in an upward-trending market, prices tend to close near their high, and during a downward-trending market, prices tend to close near their low. Transaction signals occur when the %K crosses through a three-period moving average called the “%D”.
Forex Ribbon Trading Strategy and Rules Metatrader Indicators:
- Singal Entry stop metatrader indicator,
- FerruFx_Multi_info THV metatrader indicator,
- GG-TrendBar-all time frame metatrader indicator,
- Pivot Points Levels Multitimeframe metatrader indicator,
- RibbonTrader metatrader indicator;
- signal entry indicator,
- SPAT SMOOTH Heiken Ashi metatrader indicatr
- Stratman_MiniChart_v20 metatrader indicator,
- MACD indicator (12,26,9),
- Stochastic indicator (8,3,3).
- MACD must be above 0 line.
- Price must be above Spat smooth Heinken ashi indicator
- entry stop turning from magenta to aqua (always wait for the bar to close and enter on next candle)
- Stochastic indicator pointing up
- Ribbon Trader indicator has all bars green
- Look for additionnal informations from GG trendbar, signal, FerruFx multi info and Stratman minichart to see how is the trend going on other timeframes.
- MACD must be below 0 line.
- Price must be below Spat smooth Heinken ashi indicator,
- entry stop turning from magenta to aqua (always wait for the bar to close and enter on next candle),
- Stochastic indicator pointing up,
- Ribbon Trader indicator has all bars red,
- Look for additionnal informations from GG trendbar, signal, FerruFx multi info and Stratman minichart to see how is the trend going on other timeframes,
The latest swing high or low for stop loss.
Take profit when opposite signal from entry stop.
Profit Target pivot points levels or predetermined profit target that dependes by currency pair and time frame.