Forex Strategy «Fibo + Stochastic" is a very simple breakdown trading strategy based on the levels and Fibonacci extensions, as well as on Stochastics, trade is conducted on the interval H1, the recommended currency vars: GBPUSD and GBPJPY (or other vysokovolatilnye).
And as for the trade, we need to be installed on schedule for the chosen currency paryOstsillyator Stochastics - Stochastic (14,3,3). We need only line -% K, this% D line is painted in the color of the screen.
To determine levels of entry into the market place on the chart Fibonacci levels from the minimum to the maximum of the previous trading day.
We go to the market, under the following conditions:
1) The price breaks the level of 100 or 0 Fibonnachi level (or in other words - hit the maximum or minimum of the previous trading day). Breaking - closing the candle above the maximum or below the low of the trading day.
2) Then we need to get the confirmation signal from the stochastic. The confirmation is considered to break through the 80 level for the transaction to purchase or penetration level of 20 transactions in the sale.
After breaking through one of the levels, we are reconstructing Fibonacci levels (if necessary) so that the expansion of Fibonacci 161.8% and 261.8% were on the side of the penetration level of the previous day.
Profit taking - 3 options:
1) When you reach the level of 161.8% close to 50% of the transaction and the remaining 50% of the transaction translate into bezubytka level and take profit for the remainder of the positions expose the level of 261.8%.
2) Close all of 100% of the transaction at the level of 161.8%
3) Close the deal after a penetration level of 80 in the reverse order (to buy) or level 20 in the opposite direction (for sale).
Stop-loss should be set at a maximum of the current day (for sale) iliminimum current day (for the purchase).
