stochastic-based strategy

Timeframe: H4 chart for candlestick analysis, M15 chart for trading

Currency pairs: all

Market state:flat

Required indicators:

• Stochastic (14, 3, 3)
• An inside bar of a H4 chart (price action pattern: a candle which closed inside the range of previous candlesticks)

Entry steps for a short position (Sell):

• ook for an inside bar on H4 timeframe and mark its borders.
• Jump to the M15 timeframe and wait for the price to touch the lower border.
• Make sure that the stochastic's value is less than 20.
• Look for the first bullish candlestick closing above the lower border.

Stop Loss: Place a Stop Loss below the previous swing low.

Take Profit:
Take your Take your profit when the risk to reward ratio reaches 1:2 or when the price touches the opposite borderline.

Entry steps for a long position (Buy):

• Look for an inside bar on H4 timeframe and mark its borders.
• Jump to the M15 timeframe and wait for the price to touch the lower border.
• Make sure that the stochastic's value is less than 20.
• Look for the first bullish candlestick closing above the lower border.

Stop Loss

Place a Stop Loss below the previous swing low.

Take Profit

Take your profit when the risk to reward ratio reaches 1:2 or when the price touches the opposite borderline.

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