Stochastic OB/OS Strategy is a very simple forex trading system. It is a trend following forex trading system which has very high accuracy rate and it is well tested and optimized to trade in the forex market. If you want to trade this system in stock market you might have to change the parameters of the indicators. Not all markets have the same behavior therefore technical indicators should be optimized to work in those markets perfectly. You can use Stochastic OB/OS forex trading system in any time frame with any currency pairs.
When you install Stochastic OB/OS Strategy in your trading software, your chart should look like this:
- SUPRTF
SUPRTF indicator works as a support and resistance. Red horizontal bars work as support levels and the blue horizontal line works as a resistance levels. The idea is to buy around the support and sell at the resistance.
- Bollinger bands
Bollinger bands works as a support and resistance. In this case it is still fine to ignore this indicator as other indicator will do the work just fine.
- Nice value chart
This indicator comprises of green and red bars. Green bars indicate bullish conditions and red bars indicate bearish signal.
- Stochastic
Stochastic Indicator consists of an oscillator. When the oscillator is green, you should be buying and when the oscillator is red you should be selling.
Buying Conditions Using Stochastic OS/OB System.
- Market should be up trending.
- SUPRTF indicator should form red horizontal line.
- Nice value chart indicator should form green bars.
- The Stochastic should be green.
- Place your long position when above rules are met.
- Place your stop below recent support.
- And book your profit when stochastic turns red.
Selling Conditions Using Stochastic OS/OB.
- Market should be down trending.
- SUPRTF indicator should from blue horizontal line.
- Nice value chart indicator should form blue bars.
- The Stochastic should be red.
- Place your short position when above rules are met.
- Place your stop above recent resistance.
- And book your profit when stochastic turns green.
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