EricFX Stoch Method | Forex Indicator Download - MT4/MT5 Resources

I decided to use my method to start a news thread so that I could keep track of all the issues more simply.

Part 1: Part 2 of this post: http://www.forexfactory.com/showpost...79&postcount=2
Part 3: http://www.forexfactory.com/showpost...4&postcount=13
Part 4: http://www.forexfactory.com/showpost...1&postcount=21
Part 5: Quickly my setup is:

SMI (Stochastic Momentum Index) 5/3/3/3, if you don’t have this indicator you can use Full Stoch.
Slow Stochastic, 14/3/3
Duration: 30M/4H

Part 1:
Normally I would trade 10 pairs, but for my example I would use EUR/USD, which is one of the most traded pairs. In the screenshot you can see all the trades I made in the 4 hour timeframe from April 26th to now, the 3 diamonds are all the trades I didn't make but all 3 were a good trade and the diamonds were not a good trade. The first diamond has a strange shape, and when you see a shape like this, usually the trend starts to lose its momentum, but in this diamond, he didn't do that. The price of the second diamond is too low for me to short. For the last diamond, if you look at the momentum before it went up, it was really weak, so for me, I would typically wait for the stock to get into 70~ before taking a trade to see better momentum. For squares, the stoch didn't reach anywhere near 25, so for me, going long was a no-trade, the momentum was too weak, and there was no strong feeling.

For now I just want to show the 4 hour chart because it is your main tool for trading, it shows you the price action and gives you a better feel for the momentum. If you are just starting to trade with Stochastic, only trade on this timeframe until you are confident enough in Stochastic, Slow Stochastic is your trigger, SMI is your warning, 80/20 line is your last entry point, after that, if above 80 and below 20, it is too late (I don't enter after it breaks more than 5-6 points, if I enter, fine, if not, I will wait for the second signal)

The first 3 trades were in a sideways market, up and down, we got 1 wispaw (square), that's why you need to spend a lot of time watching how Stoch reacts in all types of markets, as it follows hard trends easily, but in soft markets you need to understand how it reacts. For all those who read this and think they just need to sell/buy on the Stoch cross and its completion, well, that will make more money in my account, and for those who have taken the time to study this indicator and see how the market reacts, I'm sure you will be happy.

I will post at the end of each day all the signals we got with Stoch on EUR/USD and analyze with you all how I read it, there is a lot to learn from this indicator but I don't have time right now to write everything I want to say in one article. But I take the time every day.

One last thing, if Stoch looks weird on 4H, don't try to see if it looks better on 30M, maybe it will look better, but that doesn't make you a better market to trade in

Disclaimer: All transactions are at your own risk.

PS I invite you to follow the TEB system and there is a lot of good information. Best regards,
Eric FX