MA Stochastic Trading with SHI Signals – Stochastic is a powerful indicator that can be used in any trading strategy. Stochastic indicator is a momentum indicator that shows you how strong or weak the current trend is. It helps you identify overbought and oversold market conditions within a trend.
The stochastic indicator should be easily located on most trading platforms.
- Time Frame: M15 or higher
- Currency Pairs: Any
- Moving Average
- SHI Signals
- Stochastic Color
- Moving Average: 21 EMA > 89 EMA > 144 EMA
- SHI Signals: Blue dot below the previous swing low
- Stochastic Color: Upward from the oversold area (below the level 20)
- Moving Average: 21 EMA < 89 EMA < 144 EMA
- SHI Signals: Red dot above the previous swing high
- Stochastic Color: Downward from the overbought area (above the level 80)
- This is a trend following strategy
- You can combine the strategy with price action
- Put the initial stop loss above or below the SHI signal