Online Forex Strategies

www.ForexAutopilotRobot.com – Forex Trading Strategy – The Ultimate Momentum Indicator for Huge Profits Many traders in their forex trading strategy simply pick levels and buy or sell into them and hope they hold. This simply sees them lose, as they are hoping levels will hold and NOT acting on confirmation of price momentum to put the odds in their favor. Here we are going to look at the ultimate momentum indicator that will help you time your trading signals with laser accuracy. The momentum indicator we are referring to is the stochastic and it simply should be considered by anyone serious about making money in forex trading. The logic Of the stochastic is based on the assumption, that when a market is rising, it will tend to close near the highs of the session – and when a market falls, it tends to close near the lows. Lets look at the calculation although you dont need to understand just as you dont need to understand an internal combustion engine to drive a car you can look at it visually which we will return to in a minute first The Calculation The stochastic oscillator is plotted as two lines called %K, a fast line and %D, a slow line. • %K line is more sensitive than %D • %D line is a moving average of %K • %D line gives the trading signals Its actually similar to the way a moving average is plotted. Therefore consider %K as a fast moving average, and %D as a slow moving average. The lines are plotted on a scale of 1 to 100 scale. “Trigger” lines are normally …

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