This versatile forex system is designed to take advantage of oversold and overbought currency market conditions. It’s composed of the Forex Analyzer PRO indicator and Slow Stochastic Oscillator with default settings (5,3,3). This system works for any timeframe and currency pair.
In order to run the system, download Forex Analyzer PRO first below and then add both indicators to your MT4 chart. For scalping and day trading, use M1, M5, M15 and M30 charts. For swing trading and longer term: use H1, H4 and D1 charts.
Trading indicators: Forex Analyzer PRO, Slow Stochastic Oscillator(5,3,3).
Recommended trading style: scalping, day trading, swing trading, position trading
Platform: Metatrader 4
Download Forex Analyzer PRO
Example: EUR/USD 15 Minute Trading Chart
The figure above shows 2 excellent sell signals, both could be closed easily at risk:reward 2 (for example, risk $50 to make $100) or better. Alternatively, short trades could be closed at support level 2 for 60 pips of profit each.
Read the trading rules for buy and sell trades below. Please note how Forex Analyzer PRO keeps drawing sell arrows in the direction of the declining Euro/US Dollar trend on the 15 minute chart.
Trading Rules: Buy Trade
Enter a long position when both conditions are met as shown below:
- Forex Analyzer PRO paints a green arrow
- Slow Stochastic indicator dips below 20 and then bounces back above 20 (do not trade when the slow stoch indicator value > 50)
==> Enter a long position and place a protective stop-loss order just below the most recent support to keep the trading risk low.
Buy Trade Exit Strategy: Close the trade at risk:reward 2 or higher. Alternatively, close the buy trade at resistance 1,2 or 3.
Trading Rules: Sell Trade
Enter a short position when both conditions are met as shown below (see EUR/USD figure):
- Forex Analyzer PRO paints a red arrow
- Slow Stochastic indicator moves above 80 and then falls back below 80 (do not trade when the slow stoch indicator value < 50)
==> Enter a short position and place a protective stop-loss order just above the most recent resistance level.
Sell Trade Exit Strategy: Close the sell trade at risk:reward 2 or higher. Alternatively, close the sell trade at support 1,2 or 3.