Spud's Predictive MTF Stochastics

Predictive multi-timeframe stochastic trading with Spudfyre

Using long-term charts (such as H4, daily charts, and weekly charts) to trade past trends works well in trend trading until the trend reverses. Of course, even in a trend, there are some hills and valleys that can cancel our stop loss and put us into a losing trade, even if we make the right trade.

For small investors in Forex, this is our ongoing nemesis. We place the right trade, our stop is hit, we lose money, only to find out that the price hits exactly the final price we expected. In other words, we made the right trade but ended up with a stop loss.

What if we had some tools that could predict price movements? We can’t predict the future, but we must be aware of news that could cause big changes in the world. However, even when dramatic events occur, markets can change fundamentally, and this holds true when markets behave "normally."

These changes can only be seen over multiple time frames. The longer first half and second half time frames give us some idea of ​​where the market has been in the past. They tell us where the market must move in the future for these long-term charts to change. Our short-term time frames such as M5, M15 and M30 are the foundation upon which H1 and H4 and even longer time frames are built. Over time, every move on M5, M15 and M30, whether up or down, gives us the final H1 and H4 results.