Strategy “Two Stochastics”
For effective trading and high-quality technical analysis, traders often use the Stochastic indicator. It is combined with other tools to avoid incorrect signals and increase the chances of generating income. Often, another stochastic oscillator is used in the strategy, which makes it possible to accurately determine the main parameters of the financial market.
Benefits of the strategy
- Simplicity, which allows you to use the strategy for beginners of options. To work on it, you do not need special knowledge of technical analysis
- Accuracy and reliability, thanks to the use of the Stochastic indicator, which is one of the most popular oscillators.
Strategy settings
The correct finding of high-quality signals for the purchase of CALL and PUT options on the strategy will depend on the correct settings.
First Stochastic – parameters 21, 9, 9.
The second Stochastic is auxiliary, faster – 9, 3, 3.
Currency pair: any,
Expiration: H4; D1,
Trading Rules
To analyze the strategy, let’s turn to the H4 or D1 charts:
Slow Stochastic with specified parameters (21,9,9) is the main indicator, fast Stochastic with specified parameters (9,3,3) will be auxiliary. When both indicators, fast and slow, are equally located in the oversold zone, below the 30 mark (i.e. the solid blue line will cross the red line indicated by the dotted line (slow), rising from the bottom up, and will be fixed in the achieved position), we have a signal in front of us purchase of a CALL option.
In the same way, a signal is formed to buy a PCI option. Both indicators are in the overbought zone, above the 70 mark (the blue line crosses the red line, indicated by a dotted line, in the top-down direction).
Strategy “Two Stochastics” at the broker Olympus Trade
In order for this strategy to guarantee you the best results, and options trading to be a comfortable process, work in the terminal of the broker Olympus Trade. The modern trading platform has the necessary functionality: a convenient personal account, up-to-date analytics, a detailed history of transactions, a set of indicators, a choice of options and expiration (from a minute to an hour), market news, professional support and much more.
You can get acquainted with traders’ reviews about Olympus Trade, as well as ask questions to professionals, here. You can see what the workspace of the trading platform looks like in the image below.
A detailed review of the Olymp Trade broker is here.
Go to the official website of the broker Olymp Trade here.
In order to buy a
CALL
option in the Olymp Trade trading terminal, follow these steps by going to the olymptrade.com website and preparing an option by specifying:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: UP
- Click the “buy” button and follow the results.
In order to buy a
PCI
option in the Olymp Trade trading terminal, follow these steps by going to the olymptrade.com website and preparing an option, indicating:
- Type of asset
- Expiration
- The size of the bet
- Forecast of quote movement: DOWN
- Click the “buy” button and follow the results.
Real reviews about Olympus Trade
Bonuses of the broker Olymp Trade
The official website of Olympus Trade is also popular for profitable promotions. Bonuses increase your chances of earning decent money without investing personal funds. Hurry up to take advantage of the starting bonus, which will double the deposit. The amount of the bonus depends on the amount deposited (according to the terms of the promotion).
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