Note when using trading strategy 

Brothers setting up the chart note the following:

  • Time frame: D1.
  • Currency pair: Any currency pair.
  • Technical Indicators: Stohastic (5,3,3), EMA 2 and EMA 4.

Trading principles

For buy trade setup

  • The first condition to be able to open a long position is that the Stoch indicator must be below the 50 level.
  • The second condition is that EMA 2 must intersect EMA 4 from below. You can now open a long position.
  • Place your stop loss below the low of the daily candlestick you entered and should not exceed 3% of your entry price. However, you can also set a stop loss in another way, as long as the RR ratio is maintained at 1:2 or higher.
  • Take profits when Stoch is close to the overbought level (level 80).

Similarly, for sell trade setup

  • The first condition to be able to open a short position is that the Stoch indicator must be above the 50 level.
  • The second condition is that EMA 2 must intersect with EMA 4 from top to bottom. You can now open a short position.
  • Place your stop loss above the low of the daily candlestick you entered and should not exceed 3% of your entry price. However, you can also set a stop loss in another way, as long as the RR ratio is maintained at 1:2 or higher.
  • Take profit when Stoch is close to oversold level (level 80).

In addition, you can add 2 EMA 6 and EMA 12 to filter out the main trend that needs to be traded. This trading strategy has a good RR ratio, the principle is quite simple. However, in a sideways market, there is no trend that will not work. So please note, always manage your capital fully and follow the trading principles.