Doda Stochastic Forex Trading Strategy


The Doda Stochastic Forex Trading Strategy is now available for download on AtoZMarkets indicators gallery.

One of the most overlooked technical indicators is the Doda Stochastic Forex trading strategy. The MAs, MACD, and other oscillators are well-known, but Donchian Channels as well as Doda Stochastic are less popular. Its simplicity may be responsible.

Trading strategies are simply based upon the highest and lowest highs and lows for a given period of time. The midline is the average of these high and low. This indicator can be used to determine if there are likely reversals in a strong trend, or a break in a range. It uses the break of its midline as a basis for a shift in market sentiment.

Timeframe 5-minutes, 15-minutes, and 1-hour charts

Currency Couple: any

Trade Session: any

How to Trade with Doda Stochastic Forex Trading Strategy

This strategy allows traders to spot possible trend reversals as well as a new trend by using the combined Bands indicator. Our initial filter will be the Doda-Stochastic indicator. Trades will not be taken if the market is in an extremely volatile market. This could be either an overbought market condition or an oversold one. In an overbought market situation, we will trade for a reversal on the downside. If there is an oversold condition, we'll trade for bullish reversals.

The location of the lines will determine this. If the line is above 80, it means that we are in an overbought market situation. If it is below 20, it will be deemed oversold. We wait for the lines below 80 to cross, indicating that the market has reversed.

Like the Doda-Stochastic custom indicator and want to try it out? Do it with an AtoZ Approved broker for free:

97/100
Multibank Review
Visit Site
96/100
Capital.com Review
Visit Site
96/100
Markets.com Review
Visit Site

Setup rules for buy (long) trades

Entry

  • lines should not be lower than 20 to indicate an oversold market condition
  • should cross the fast line (lime), above the slow line(red).
  • Wait for the price to break, then close above the Donchian bands midline
  • Do not trade where the cross is far from this Doda–Stochastic lines crossover
  • If you have met the above requirements, place a buy order at the closing of the candle

Stop Loss

  • Place the stop loss a few points below the entry candle

Exit

  • As soon as the price crosses the Donchian bands midline, close the trade

Setup rules for Sell (Short Trade)

Entry

  • Doda -Stochastic lines should not be below 80 to indicate an overbought market situation
  • Doda–Stochastic should cross below slow line (red).
  • Do not wait for the price to drop and then close below Donchian bands midline
  • Do not trade where the Donchian Bands cross is far from any Doda–Stochastic lines crossover
  • If you have met the above requirements, place a sell order at the closing of each candle

Stop Loss

  • Place the stop loss a few points above the entry candle

Exit

  • As soon as the price crosses the Donchian bands midline, close the trade

How do I download and install an indicator

These steps are required to install the indicator onto your MT4 platform.

  1. At the bottom of this post, click on the " download indicator" button.
  2. Save the file to your hard drive.
  3. Move the files to the MT4>Indicator directory in the MetaTrader4 software folder.
  4. Start your Metatrader platform.
  5. Navigate to " Indiators."
  6. Select the template you wish to use on the chart.

T. Morris developed this indicator. AtoZ Markets has no copyrights to this trading tool.

Get a free account to try the Doda Stochastic Forex trading strategy with a reputable brokerage:

97/100
Multibank Review
Visit Site
96/100
Capital.com Review
Visit Site
96/100
Markets.com Review
Visit Site

Should you use the Doda-Stochastic custom indicator on your own at all?

Before you start trading with the Doda-Stochastic custom indicator, you'll want to read this.

Our in-house trading expert Dr Yury Safronau, PhD in Economic Sciences, gives you daily his best forex, stocks, metals, and cryptocurrencies to buy and sell signals right now.

His trading strategies which are based on non-linear dynamic models have achieved more than 65 000 pips of profits since 2015. And right now there are some very strong buy and sell signals across several markets you don't want to miss.

Want to see which ones?

Get Trading Opportunities

Leave a Reply

Your email address will not be published.