In this Article i will discuss the strategy on use of Stochastic and Fibonacci that can be used with any currency pair but better work on Major pair. the system is good to take trade for 1HR-4HR min time frame ,so lets have a look from setting up chart and entry of trade.

Here How I set my Chart..

  1. I always use Weekly Fibonacci level as my Target Price and Stop Lost
  2. My Target price is always above the second level of weekly Fibonacci for LONG of my Open Position
  3. My target is always below the second level of weekly Fibonacci for SHORT of my Open Position
  4. My stop lost is always at the second second level above of weekly Fibonacci for SHORT
  5. My stop lost is always at the second second level below of weekly Fibonacci above for LONG
  6. Use Stochastic as a great filter to find OVERSOLD n OVERBOUGHT if the Stochastic of 4H is in oversold area, don't try to take SHORT position and vice versa
  7. Always confirm in Stochastic DAILY.. if you found Stochastic in 4H is oversold, but Stochastic Daily didn't say that OVERSOLD.. You can go SHORT and visa versa
  8. If you found DAILY Stochastic said oversold area never take a Long trade and visa versa.
  9. Confirm it with Stochastic Daily,4H and although your stop lost didn't hit,just quit and wait for reversal direction
  10. Beware of Major News...


For example IF you have open position LONG which price is between Fibbo level 38.2% and 50% so the target price not 50% fib level, but the price at 61.8%

IF you have open position SHORT which price is between Fibbo level 123.6% and 100% so the target price not 100% but but the price at 76.4%

hope you can understand it



Throughout my financial career, I have continually witnessed examples of other people that I have known being ruined by a failure to respect risk. If you don’t take a hard look at risk, it will take you.” – Larry Hite
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