Adaptability, this is a key trait that traders should have. The market is volatile. Market conditions change instantly. Traders who don't learn to adapt these changes might still have fun when the market is working for them, but when the market changes they are at a loss as to why their strategies that used to work don't seem to be working for them anymore .
The Doda Stochastics Forex Trading Strategy is a strategy that enables traders to deal with the market more frequently in different market conditions.
There are two types of trading strategies that appear as exact opposites: medium reversal strategies and trending based strategies. Both strategies work well for different market conditions. Medium reversal strategies tend to work well for markets with different domains, while trend-based strategies work well in markets with a high trend bias. The difficulty is that a strategy is used in the wrong market conditions for its type.
The Doda Stochastics Forex strategy is a strategy that is a combination of medium reversal and trend following strategy. This enables the strategy to work decently in a market condition suitable for medium reversal strategies while capturing a large portion of the trend that trend-following strategies seek to capture.
Doda Bollinger Bands
Bollinger Bands are probably one of the most popular indicators for technical traders. This is because Bollinger Bands provide a lot of information in one indicator. It gives trending indicators based on the middle bands, which is a simple moving average. It also provides information on likely mean reversal areas using its outer bands, which are essentially markers of oversold and overbought areas.
Despite its effectiveness, many traders still find it difficult to use the standard Bollinger Band indicator. This is due to the subjective nature of the entries generated by the Bollinger Bands. Traders would have to decide whether the price is stretched enough to consider a medium reversing entry valid, or whether a trend reversing entry has enough momentum to actually change the trend.
The Doda Bollinger Bands remove all of this confusion by simply generating the entry signals when the market changes its trend. This allows traders to easily follow the market when it reverses and shows trends.
The stochastic oscillators are a classic indicator used by many medium reversals traders. It is an oscillating indicator first discovered by Dr. George Lane was introduced.
The stochastic oscillator consists of two oscillating lines, one faster than the other. These lines cross whenever the indicator detects a likely trend reversal, especially in the short term.
Since the stochastic oscillator is a limited oscillating indicator, traders could mark points in the area they would consider overbought and oversold. In most cases, traders would typically mark 80 and more as overbought area and 20 and less as oversold.
The Doda Stochastic Bollinger Bands forex trading strategy utilizes the mean reverse properties of the Stochastic Oscillator and the trend reversal entry signals generated by the Doda Bollinger Bands.
The Doda Bollinger Bands are pretty easy to use. Entries are always generated when the dotted lines move above or below the price movement, which is also accompanied by the change in color.
The stochastic oscillator is used as a medium reverse trade filter. Buy trades are only made when the Stochastic Oscillators are oversold and sell trades are only made when the lines are overbought. However, since the Stochastic Oscillator indicator is generally used for short-term trends, the parameters are changed to capture longer-term trades.
- Doda BBands
- Stochastic oscillator
- % K: 36
- Slowdown: 24
- % D: 24
Time window: 1-hour, 4-hour, and daily charts
Currency pairs: Major and minor pairs
Trading session: Meetings in Tokyo, London and New York
Buy Trade Setup
- The stochastic oscillators should be below 20, indicating an oversold market situation
- The fast stochastics should exceed the slow stochastics, indicating a bullish trend reversal
- The Doda Bollinger Bands indicator should change to blue and be printed below the price action, indicating a bullish trend reversal
- At the confluence of these terms, place an order to buy
- Set the stop loss to the support level below the entry candle
- Close the trade as soon as the fast stochastic line falls below the slow stochastic line
Sell Trade Setup
- The stochastic oscillators should be above 80, indicating an overbought market
- The fast stochastics should fall below the slow stochastics, which indicates a downward trend reversal
- The Doda Bollinger Bands indicator should turn red and be printed above the price action, indicating a bearish trend reversal
- At the confluence of these terms, place a sell order
- Set the stop loss to the resistance level above the entry candle
- Once the fast stochastic line crosses the slow stochastic line, close the trade
This trading strategy has a decent win rate. This is due to the fact that both medium trade reversals and trend reversal trade configurations are taken into account. This also enables traders to obtain reasonable returns compared to the risk of an individual trade. Traders usually find trades with a reward-to-risk ratio of 1.5: 1 to 5: 1. This is possible because medium reversals usually mean that the opposite level of support or resistance is quite a long way from entry as the market is still is not overwhelmed. The combination of a decent win rate and reward-to-risk ratio makes the Doda Stochastic Forex Trading Strategy an excellent strategy for making a profit in the market.
Forex Trading Strategy Installation Instructions
Doda Bollinger Bands' Stochastics Forex Trading Strategy is a combination of Metatrader 4 (MT4) indicator (s) and template.
The essence of this forex strategy is to transform the accumulated history data and trading signals.
Doda Bollinger Bands' stochastic forex trading strategy provides the ability to spot various specifics and patterns in price dynamics that are invisible to the naked eye.
Based on this information, traders can assume further price movements and adjust this strategy accordingly.
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How Do I Install Doda Bollinger Bands Stochastics Forex Trading Strategy?
- Download Doda Bollinger Bands Stochastics Forex Trading Strategy.zip
- * Copy mq4 and ex4 files to your Metatrader directory / Experts / Indicators /
- Copy the tpl file (template) into your Metatrader directory / templates /
- Start or restart your Metatrader client
- Select the chart and timeframe in which you want to test your forex strategy
- Right click on your trade chart and hover over "Template".
- Move right to select Doda Bollinger Bands Stochastics Forex Trading Strategy
- You will see that Doda Bollinger Bands Stochastics Forex Trading Strategy is available on your chart
* Note: Not all forex strategies come with mq4 / ex4 files. Some templates are already built into the MT4 indicators of the MetaTrader platform.
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