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A great indicator to add to your amoury


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Put it on a 15 minute chart and then overlay a 14/4/9 Stochastic. Scan back over the past and look at points where the StochRSI crosses down below 20 or up above 80. The StochRSI is a much faster indicator which more definative signals down or up. The Stochastic indicator is much smoother but lags and gives a weaker signal in my opinion. I would not use the StochRSI indicator alone but is useful if combined with say a nonlag MA to determine when to get in and out of a trade. Play with it and see if it helps your trading system.

 

I am always trying to improve my system and find indicators that compliment each other. My opinion is that indicators can help but I am horrified when I see screenshots with a dozen or so indicators. Find three or four at maximum and work with them rather than constantly changing to the next holy grail. Indicators should prop up what you see from price action rather than being a fly-by-wire trading system in their own right.

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Just playing about with this indicator I have observed what could be quite an effective but very simple trading system. Take a look at this and let me know your thoughts.

 

Set up a chart say on EURUSD M15 and add the Stochastic RSI indicator.

 

Sell when the line goes down through the 80 line. The indicator will drop down and through the 20 line. Then it will probably bimble about for a while. When it then jumps up through the 20 line close the trade and start a long trade. The indicator will then jump up through the 80 line, bimble about a bit and then drop back through the 80 line. This is the point to reverse the trade to a sell.

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My meta traderplatform is exiting unexpectedly with this indicator.. Please help

 

U need to update ur metatrader 4 to the latest version

One obvious truth.FOREX IS ANYTHING BUT EASY
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Take a look at the attached. (Please someone let me know how I can display images on this forum!)

 

The indicator I have used to confirm trend is a non-lagging MA. Trade is simply buy where the arrow is pointing up and close the trade/open a sell trade where the arrow points down. It's not always right but the hit rate is pretty good isn't it?

 

http://www.4shared.com/document/-t7Ehn7n/stochasticRSI_trading_example.html

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What problem are you seeing? I am assuming that you have loaded this indicator under experts/indicators in your MT4 file?

 

I added the indicator in correct place.when i attact it to charts, it hangs the platform and exits..

Trade the signal, don't chase it
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I put the arrows in myself to show entry and exit points. I was looking at M15, M30 and H1 though there is no reason why it should not work on shorter TFs. I agree that it should be used alongside something else and fibs, S&R or pivots would work. I quite like nonlagMA or simply three EMAs set to 5, 13 and 62 to confirm trend.

 

I did get good results working with just the StochasticRSI and price action on a simulator on M15 EURUSD though I haven't tested this live.

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  • 2 weeks later...
  • 1 year later...

Doh, the minute I asked question I found answer.....

 

For those interested the StochRSI can be found on the second link given in the earlier post but it is a text file which you will need to compile using MetaEditor which you WILL have as part of your MT4 package.....

 

Anyone need help on how to then just PM me :-)

 

Stone

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