Stochastic strategy (StoGAPtic strategy) | Forex indicator download- MT4/MT5 resources
Hello.
I thought it was time to share my StoGAPtic strategy with you all (try to get creative with the names here...don't kill me if you don't like it...).
Writing down my StoGAPtic strategy and presenting it to others forced me to think through it, finalize it, and even better remember it. Also, it's very important to me that I share this so that others can test it, try it, review it critically, and hopefully refine/improve it. I hope you agree.
Also, my hidden secret is that I actually want more and more people to use my strategies...because the more people think like me, act/buy like me, the more likely the price will move in my direction and the more likely I will make money , right? ? I don't understand people who "hide" their strategies...actually, I do...assuming they're not stupid, they don't reveal their strategies because they know they don't work in real trading, so they try to sell them to other people. Anyway, let me not get into philosophical nonsense…
StoGAPtic basically stands for Stochastic Gap Analysis because I use and compare multiple stochastics in the same indicator window (I used to have 4 stochastic lines but reduced it to 3 because I thought these were enough). I'm attaching my template and all the indicators that appear in it.
My StoGAPtic theory: Stochastic tells me the duration of the current price in the selected period (you can also call it overbought/oversold). For most Forex pairs and most timeframes (especially H4, D1 and W1), the shortest period/period that can be identified is 5-7 candles. therefore:
-I used random 5 periods (blue line) to see how the current closing price compares to the shortest identifiable period of 5-7 candles. Note that I only use %K (I don't care about %D).
-I then overlay a random 25 period (5x5; salmon line), as that will roughly correspond to the next higher time frame; and a random 125 period (5x5x5; yellow-green line), which will correspond to the next higher time frame.
See the example in the image below.
Important note: I don't just rely on random notches. They can only be used in conjunction with trend lines/channels and S&R lines.
As with any strategy, this is not a perfect method of analysis. Trading and chart reading is and will remain an art. With StoGAPtic, continuation patterns are easier to recognize and more reliable; I still struggle with reversals... I recognize them too early and therefore often get in too early... Can't overcome greed... As you know, psychology is a major part of trading... That's why I use "at least 2 candles required" in big letters to remind myself that reversals (or even continuations) don't happen suddenly, especially on the H4 and D1 charts.
When I look at the chart in the morning, I have to keep reminding myself that there are at least 4-5 H4 candles left until the end of the trading day; therefore, one should be patient and wait for a confirmed reversal until the next D1 candle.
I'll be posting my analysis using this strategy in this thread; I hope others will do the same.
I would like to ask that those who would respond please be polite and helpful/constructive with your comments. I offer you my learning and knowledge in the hope that you will gain some knowledge as well. I don't think posting "go long at the level of..." or "I exited with a 20 pip profit" post is very useful... I really like my posts to be viewed as a source of market ideas, visions, and forecasts.
Thanks in advance to everyone who contributes to the StoGAPtic strategy. And, please don't use this strategy in real trading unless you master it...
I thought it was time to share my StoGAPtic strategy with you all (try to get creative with the names here...don't kill me if you don't like it...).
Writing down my StoGAPtic strategy and presenting it to others forced me to think through it, finalize it, and even better remember it. Also, it's very important to me that I share this so that others can test it, try it, review it critically, and hopefully refine/improve it. I hope you agree.
Also, my hidden secret is that I actually want more and more people to use my strategies...because the more people think like me, act/buy like me, the more likely the price will move in my direction and the more likely I will make money , right? ? I don't understand people who "hide" their strategies...actually, I do...assuming they're not stupid, they don't reveal their strategies because they know they don't work in real trading, so they try to sell them to other people. Anyway, let me not get into philosophical nonsense…
StoGAPtic basically stands for Stochastic Gap Analysis because I use and compare multiple stochastics in the same indicator window (I used to have 4 stochastic lines but reduced it to 3 because I thought these were enough). I'm attaching my template and all the indicators that appear in it.
My StoGAPtic theory: Stochastic tells me the duration of the current price in the selected period (you can also call it overbought/oversold). For most Forex pairs and most timeframes (especially H4, D1 and W1), the shortest period/period that can be identified is 5-7 candles. therefore:
-I used random 5 periods (blue line) to see how the current closing price compares to the shortest identifiable period of 5-7 candles. Note that I only use %K (I don't care about %D).
-I then overlay a random 25 period (5x5; salmon line), as that will roughly correspond to the next higher time frame; and a random 125 period (5x5x5; yellow-green line), which will correspond to the next higher time frame.
See the example in the image below.
Important note: I don't just rely on random notches. They can only be used in conjunction with trend lines/channels and S&R lines.
As with any strategy, this is not a perfect method of analysis. Trading and chart reading is and will remain an art. With StoGAPtic, continuation patterns are easier to recognize and more reliable; I still struggle with reversals... I recognize them too early and therefore often get in too early... Can't overcome greed... As you know, psychology is a major part of trading... That's why I use "at least 2 candles required" in big letters to remind myself that reversals (or even continuations) don't happen suddenly, especially on the H4 and D1 charts.
When I look at the chart in the morning, I have to keep reminding myself that there are at least 4-5 H4 candles left until the end of the trading day; therefore, one should be patient and wait for a confirmed reversal until the next D1 candle.
I'll be posting my analysis using this strategy in this thread; I hope others will do the same.
I would like to ask that those who would respond please be polite and helpful/constructive with your comments. I offer you my learning and knowledge in the hope that you will gain some knowledge as well. I don't think posting "go long at the level of..." or "I exited with a 20 pip profit" post is very useful... I really like my posts to be viewed as a source of market ideas, visions, and forecasts.
Thanks in advance to everyone who contributes to the StoGAPtic strategy. And, please don't use this strategy in real trading unless you master it...
























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