Forex Slope Strategy With Stochastic Oscillator
The forex slope strategy is composed of the MT4 TmaSlope indicator with the popular Stochastic oscillator.
We look to buy dips in a buy trend. Conversely, look to sell rallies in a sell trend whilst keeping our risk as low as possible.
Indicators: TmaSlope, Stochastic Oscillator (5,3,3)
Preferred time frame(s): 5 min chart and above
Trading sessions: Any
Preferred Currency pairs: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CAD, NZD/USD, EUR/JPY, GBP/JPY
EUR/USD 4 Hour Chart
The chart above illustrates the buy (B) and sell (S) trade setup. Click the chart to enlarge.
- Criteria #1: TmaSlope above 0.00 level (bullish)
- Criteria #2: Stochastic Oscillator turns back above 20 from below (oversold market conditions)
This is your buy signal. Place protective stop-loss 4 pips below previous support.
Possible Targets: Book 50% profits at 1:1 risk-to-reward. Book 25% profits at 1:2. Book 25% profits at 1:3 (i.e. risking 50 to make 150).
- Criteria #1: TmaSlope below 0.00 level (bearish)
- Criteria #2: Stochastic Oscillator turns back below 80 from above (overbought market conditions)
This is your sell signal. Place protective stop-loss 4 pips above previous resistance.
Possible Targets: Book 50% profits at 1:1 risk-to-reward. Book 25% profits at 1:2. Book 25% profits at 1:3.