The basic strategy applies 18 stochastic oscillators (of course, their number can be changed at the trader's discretion), which on the chart should be spliced ​​into a visual "rope", eventually forming their peak at the top or bottom. The %K parameter is set with step 1 from 6 to 24 (6, 7, 8...24). The principle is that in most cases the stochastic lines will form a network, that is, they will move in different directions. The recommended deadlines are 1H and 4H. M30 can be applied in the last case, but not a shorter one, because it may not evaluate the market sentiment and miss the signal.

All stochastic lines conventionally come in three groups: Short period (%К: 6-13). Stochastic basis with a period %К = 14. Long period (%К: 15-24). It is logical that we do not get a perfect coincidence of the lines of all stochastics. But, the thinner the rope, the better. In perfection, the lines should be as close to each other as possible, without gaps, crossings and random Belize Mobile Number List movements. As practice shows, the rope begins to form 1-2 candles before a peak appears. Now, I will tell you how this trading system works in the Forex market in practice. For this strategy we will use a modified SpudStochastic complex indicator. The indicator contains 8 stochastic oscillators that form a kind of stochastic rope. They have the same values ​​for slow and period %D, but different values ​​for %К. A signal to enter will be when all 8 lines converge into a single rope.



When they are visually close to each other and are about to reverse, a position can be opened. Two important points: The point of convergence of the stochastic rope must be in the upper or lower zones. If the rope formed above the 20 level or below the 80 level and then started to unravel, you will not enter a trade. When the rope forms well before its peak (i.e. the lines run parallel with minimal spacing) it suggests a strong trend. Even if SpudStochastic enters the signal zone, you'd better avoid entering. Another tool, applied here is a type of filter, a Cycle Koufer Extremus market analysis indicator. It is rarely used in strategies, but in this case it is quite suitable.