Forex Stochastic STC Trading System : Trading in The Direction of the Dominant Trend on A Daily Chart

How To Trade in The Direction of the Dominant Trend on A Daily Chart –  The first tip for trading a daily chart is finding the trend! One of the benefits of trading the daily chart lies in the long drawn out moves of the Forex market.


Remember that trading with Daily Candles may only yield one or two appropriate positions on a single currency pair for a whole year. This means staying out of the market and keeping your trading capital free until an opportunity emerges.


Forex Stochastic STC Trading Rules


Forex Stochastic STC Trading System is a momentum trend fx strategy based on the Schaff Trend Cycle with Slow Stochastic and momentum indicator.

The Stochastic and STC indicators provide you with information on both long‐and short‐term market direction.

Together they present a rolling estimate of the market direction on a daily chart while maintaining the shorter term characteristics of hourly price movement. “The trend is our friend”.

Consequently, the combination of these two indicators is ideal for this approach to trading the Forex, as we are usually trading in the direction of the dominant trend.

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However, there are times when you can trade against the trend, taking advantage of a retracement or probable change in market direction.

  • Best Time Frame : D1 (Daily)
  • Best Pairs : Majors; Indicies: S&P 500, Nasdaq, DAX, FTSE.

Forex Metatrader Indicators

  • Schaff Trend Cycle (30, 24, 48);
  • Stochastic (78,78, 1);
  • Momentum
  • EMA 15 and EMA 5
  • Signal Trend


BUY Rules


  • Stochastic line above the signal line and Schaff Trend Cycle is above the level 20
  • Momentum line upward and above 100 level
  • EMA 5 above EMA 15
  • Price upward and above both EMA lines


SELL Rules


  • Stochastic line below the signal line and Schaff Trend Cycle is below the level 80
  • Momentum line downward and below 100 level
  • EMA 5 below EMA 15
  • Price downward and below both EMA lines


EXIT Rules

Exit position with profit target predetermid that depends by time frame and currecy pairs.

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Money Management

We recommend trading at a max of 1% per trade and 4% total on all currency pairs you’re trading.

If you are trading only one calibrated pair, you could trade at 4%.

If you are trading two calibrated pairs, you could trade each at 2%.

If you are trading 3 calibrated pairs, you could trade each at 1.33%.

Finally, if you are trading 4 calibrated pairs, you could trade each at 1%.

HOWEVER, you, and only you, can decide the amount of risk that is best for your circumstances and trading style.

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