Multi Time Frame Stochastic Indicator
Let me first tell you. Your Broker will not want you to have this indicator.09
This has taken some time to get right but finally we got there!
This is a great indicator to help you judge your entry to pin point precision.
The best way to use this indicator for a solid entry is to follow this guide:
- Check for your Stochastic levels to be above the over bought mark 80 on the scale.
- decide what time frame you are trying to trade, are you looking for a scalp entry or a swing trade. I tend to find you do best to find a pair where all time frames are above the line first even if all you want is a scalp trade as this just gives you more likely hood that you will succeed in your trade.
- This is the hard bit. Patience! You wait until all time frame main lines break down over their signal lines. You then wait for the 5min Stochastic to hit back up above the 80 line and cross back down and you sell.Its only once your M5 stochastic hits back up that you enter to minimise your drawdown this should give you a successful trade.
- As a rule I use the oversold of the H1 as an exit point for my trades once the H1 as reversed and crossed up over its signal line then we close out.
The reverse should be used in a Buy trade.