Stochastic crossover

This trading system works for any currency pair and any time frame. The indicator we use here is stochastic (14, 3, 3).

Buy when the faster stochastic line crosses the slower one from below. Sell when the faster line crosses the slower one from above. When you close a long position, you enter a short position at the same time. A conservative investor would wait until the following price bar to form after the crossover to enter into a trade.

This system is very easy to use, as it has clear entry and exit rules. However, stochastic is a lagging indicator. It might create a lot of false signals. Also parameter settings should be customized for each currency.

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