Hello Traders, I’m Mani and I’m the writer of Trade 77 section, please follow me on twitter for further updates.
This is one of my personal scalping methods and I call it “5 Minute Silence Time”.
First of all I want to note that I’m not using Stochastics in my analysis and also my swing trades and I don’t like indicators at all but in this scalp method we are going to use this famous indicator as I had worked with stochastics almost 3 years before.
Method Profile:
1. EURUSD M5 Chart
2. Stochastic 14,3,3
3. 80 and 20 levels on the stochastics indicator
4. Profit target are 7 pips and 10 pips
5. Stop loss is 15 pips
How to Trade:
General rule of trading is to trade only once a day and after 15:00 New York time. After 3 pm we wait for stochastics to go above 80 or below 20 and exactly at the close of that candle we will go short or long respectively.
Look at the chart below, this was the previous signal for last day:
This is another example of this method:
There is another rule here: If at 15:00 stochastic was already above 80 or below 20 then you should wait for it to go around 60 (for the first case) and go around 40 (for the second case) and then wait for a buy or sell signal.
This is called Stochastic neutral zone in this method, so if stochastic was already in the strike zone then you should wait for it to go in the neutral zone and then wait for a signal.
Here I have to note that all signals are based on K% in stochastics, so you should wait for the K% to go above 80 or below 20 for a signal.
This method works great in low volatility market, I choose after 15:00 NY time because of this issue. So we can use this method whenever we find out price action is narrow and volume is too low such as this week and also holidays.I will write about my general idea about this issue later.
Comments are open so if you have got any ideas and opinions please do not hesitate to write it down.
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Kindest Regards