2Ds Stochastic Bands Forex Trading Strategy
For you to write your own success story in the forex market, you should master the art of self-control, along with discipline.
Every trader always has a hidden initial motive, which is obviously to get rich in the shortest possible interval.
We have designed the 2Ds Stochastic Bands forex trading strategy to help you attain success in your trading career.
It’s a great working simple trading strategy that is profitable in the long run! Let’s get started:
MetaTrader4 Indicators: Doda-Stochastic.ex4 (Input Variable modified; Slw=16.0, Pds=26.0, Slwsignal=18.0), Donchian Bands.ex4 (Input Variable modified; IPeriod=36)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any (London, New York, Tokyo)
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Initiate a buy entry if the following indicator or chart setup is put on display:
- If price closes above the middle green line of the Donchian Bands.ex4 custom MT4 indicator as seen on Fig. 1.0, the market is believed to be experiencing upward pressures, a buy alert is imminent.
- If the red line of the Doda-Stochastic custom indicator intersects the lime line bottom up below the 20.00 region as illustrated on Fig. 1.0, price is said to be pushing higher, as such an indication to buy the listed currency pair.
Stop Loss for Buy Entry: Place stop loss 1 pip below medium-term support level.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If while buy positions are live in the market, price is seen to close below the middle green line of the Donchian Bands custom MT4 indicator, it is pointing to an imminent bearish reversal, hence an exit or take profit will suffice.
- If the red line of the Doda-Stochastic custom indicator intersects the indicator’s lime filled line above the 80.00 region (refer to Fig. 1.0), it is a signal to exit or take profit at once.
Sell Entry Rules
Enter a sell order if the following holds sway:
- If price closes below the middle green line of the Donchian Bands custom MT4 indicator as shown on Fig. 1.1, the market sentiment is said to be bearish i.e. a trigger to go short on the designated forex pair.
- If the red line of the Doda-Stochastic custom indicator intersects the lime line top downward above the 80.00 region as depicted on Fig. 1.1, price is said to be taken lower i.e. a looming sell order is said to be place.
Stop Loss for Sell Entry: Place stop loss 1 pip above medium-term resistance level.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If price closes above the middle green line of the Donchian Bands custom MT4 indicator (refer to Fig. 1.1), bears power is said to be halting in the market, hence an exit or take profit is advised.
- If the red line of the Doda-Stochastic custom indicator intersects the indicator’s lime filled line below the 20.00 level, an exit or take profit is duly recommended.
Sell Trade Example
About The Trading Indicators
The Doda-Stochastic.ex4 custom indicator is a momentum indicator that compares the closing price of a forex pair or symbol to the range of its prices over s specified time period
Developed by Richard Donchian, the Donchian Bands.ex4 custom indicator is as a tool to spot market price volatility.
The Donchian Bands.ex4 gets narrow when there’s no noise in the market, but rapid movements in price will see the bands widens.