logo

Trendline Trading Strategy With Stochastic Indicator

This forex price action trading system that uses a stochastic indicator and it is called the trendline trading strategy with the stochastic indicator.

Its trading rules are similar to those of the trendline trading strategy but the only difference here is that the stochastic indicator is used as a confirmation to filter those trade setups that happen on the trendline.

Trading Setup Requirements
Timeframes: Any

Currency Pairs: Any

Indicators: Stochastic Indicator only with default settings.

BUYING RULES
In an uptrend, you draw a rising trendline. If you don’t know how, how to draw trend lines is a good resource to read first.
Then wait for the price to come to it and touch it.
If the price touches the rising trendline, check to see if the stochastic indicator is below the oversold region and if that is the case, you go to step 4.
Place a buy stop pending order above the high of the candlestick that corresponds to the stochastic in the oversold region.
Place your stop loss anywhere from 2-10 pips under the rising trend line
Place your take profit target on a previous swing high.
Here’s a chart of the trendline trading strategy with the stochastic indicator buy trading setup:

Trendline Trading Strategy With Stochastic Indicator-price action trading strategy

SELLING RULES
In a downtrend, you draw a falling trendline. If you don’t know how to Learn how to draw trend lines is a good resource to read first.
Then wait for the price to come and touche the falling trendline
If the price touches the falling trendline, check to see if the stochastic indicator is above the overbought region and if that is the case, you go to step 4.
Place a sell stop pending order above the low of the candlestick that corresponds to the stochastic in the overbought region.
Place your stop loss anywhere from 2-10 pips above the falling trend line
Place your take profit target on previous swing low.

This chart below is a sell setup of the trendline trading strategy with the stochastic indicator:

Trendline Trading Strategy With Stochastic Indicator-price action trading strategy

SUMMARY
As you can see, using the trendline trading strategy with the stochastic indicator is not a complicated trading system at all.
It is a simple price action trading system even a new forex trader can find easy to understand and use.
Using the stochastic indicator as a trade filter allows you to know that a reversal may be happening when the indicator is above the 80 levels (for overbought condition) or below the 20 levels (for oversold condition).
It is also one of those forex trading strategies that you can apply a tight stop-loss trading technique.

Source

CONTACT US

Mail : [email protected] Skype : qmanager.live

Phone : 0091 9600329983 and 0091 9487929983

Whatsup: +91-9600329983 and viber: +91-9600329983

Instagram: https://www.instagram.com/forextamil/

Facebook : www.facebook.com/forextamil4u

Twitter: https://twitter.com/forextamil

Telegram.: https://t.me/joinchat/AAAAAE1NL_LTgtLrGlmbIQ

Pinterest: https://in.pinterest.com/forextamil/

Youtube : www.youtube.com/user/senthamizharasuvta

Tradingview: https://www.tradingview.com/u/forextamil/

website: www.tradingwithtamil.com and www.forextamil.com

Broker: www.ttsmarkets.com

 

08 Jan 2019 3:54 pm Posted by tamilforex

 
WhatsApp chat