Forex Strategy “Fibo + Stochastic”
The forex strategy “Fibo + Stochastic” is a very simple breakdown trading strategy based on Fibonacci levels and extensions, as well as on Stochastic, trading is carried out on the H1 interval, recommended currency varieties: GBPUSD or GBPJPY (or other highly volatile).
And so for trading, we need to set the Stochastic Oscillator - Stochastic (14.3.3) on the chart of the selected currency pair. We need only the line -% K, for this we paint the% D line in the screen color.
To determine the levels of entry into the market, we place Fibonacci levels from the minimum to the maximum of the previous trading day on the chart.
We enter the market, subject to the following conditions:
1) The price breaks through level 100 or Fibonacci level 0 (or in other words - breaks through the high or low of the previous trading day). Penetration - closing a candle above the high or below the low of the trading day.
2) Then we need to get a confirmation of the signal from the stochastic. A confirmation is considered to be a break of level 80 for a deal to buy or a break of level 20 for a deal to sell.
After breaking through one of the levels, we rebuild the Fibonacci levels (if necessary) so that the 161.8% and 261.8% Fibonacci extensions are on the side of breaking through the level of yesterday.
Profit taking - 3 options:
1) Upon reaching the level of 161.8%, close 50% of the transaction, and transfer the remaining 50% of the transaction to the breakeven level, and set the take-profit for the remainder of the position at 261.8%.
2) Close all 100% of the transaction to the level of 161.8%
3) Close the transaction after breaking through level 80 in the reverse order (for buying) or level 20 in the opposite direction (for selling).
Stop-loss must be set to the maximum of the CURRENT day (for sale) or the minimum of the CURRENT day (for purchase).
Video version of the forex strategy "Fibo + Stochastic":
Download template for MetaTrader - fibo_stochastic.zip