This is a strategy i bumped upon, it has made me a couple of pips when i tried it. I guess this is a good strategy for new traders who are just curious. This is not a guaranteed system since nothing is black and white in the forex. It is going to be subject to your own modifications. You are free to make additions as well. Happy reading.
Entry rules: When Stochastic has crossed below 20, reached 10, and then crossed back up through 20 – set BUY order.
Entry rules: Sell when Stochastic has crossed above 80, reached 90, and then crossed back down through 80.
Exit rules: close trade when Stochastic lines reaches the opposite side (80 for Buy order, 20 for Sell order).
The stochastic oscillator gives a quite good entry and exit points if well studied but one thing is that it should not be used alone as an indicator. Using it alone may put you in some jeopardy of fake outs. I suggest you use stochastics together with RSI (Period 14). When both tells you the same thing, then you may wanna act. I hope you find this a little bit helpful.
Have a nice day.
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