Positional trading with Stochastic and MA

Positional trading with Stochastic and MA is a strategy designed for daily chart with two indicators – Simple Moving Average (SMA) and Stochastic Oscillator. 3 conditions be are agree for make a order in the market: 1)SMA crosses upward/downward the candle of price ; 2)the price of the close of the last bar is more higher/lower of the previous candles; 3) filter for trade signal (Stochastic oscillator %K line crosses %D line upward for buy or downward for sell).

The best signals for trading are when the crosses of the stochastic are in the oversold (for buy or overbought area for sell) for positional trading this is optional.

Trade in the direction of the trend for positional trading. For define the trend go a weekly chart, if the trend is up only buy if the trend is down only sell.

For a fast trading place profit target 50-70 pips and you can trade only on daily chart. Profit target 50-70 pips. Place initial stop loss 50 pips above/below the entry bar, note that the loss can be more higher of 70 pips.

Indicators:

5 simple moving average, close.

12 simple moving average , close.

Stochastic oscillator (14, 3, 3).

Long Enry:

The candle’s close price is above SMA and the last candle is above the High price of the previous candle. Filter the trade signal is the Stochastic’s %K line that should cross % D line upward. If %K line crosses %D downward or a Short signal trigger was generated, the strategy is reset.

If all the conditions are met, a long position is opened with a stop loss at the minimum level of the last five candles. The Stop Loss is moved after the candles are closed over time.

Option fast trading :  profit 50-70 pips.

Short Entry:

The candle’s close price is above Simple Moving Average and the last candle is below the Low price of the previous candle. Filter the trade signal is the Stochastic’s %K line that should cross % %D downward or a Long entry trigger was generated, the strategy is reset.

If all the conditions are met, a short position is opened with a stop loss at the minimum level of the last five candles. The Stop Loss is moved after the candles are closed over time.

Option fast trading:  profit 50-70 pips.

In the chart GBP/USD on the picture 1 we have 5 buy trades: 4 winning and 1 loss. The trend on weekly chart is up.

In chart below we have Positional trading strategy with fast profit.

7 trades: 6 winning and 1 loss.