Trading Overbought and Oversold Bars with Stochastics

Defining a Trade Setup using Stochastics

Using the Stochastic Indicator we can define several simple and easy Trade Setups.

With the Ninjatrader Stochastics Indicator we can define Overbought and Oversold Bars when the K line is above or below these levels.

The D line is an average of the K line, so the closest is its period to 1, the closest this line will be with the K. With a period of 1, both lines overlap one each other.

We can use 2 different methods to trade with Stochastics ;

• Using both K and D lines ; we watch for Crossover of these lines, and take an entry depending where the crossover happened ; if it was on the overbought, we have a sell. If it was on the oversold, then it is a buy signal.
• Using only the K Line ; we wait for the K line being on the overbought/oversold area and trying to get out...

Example using Method 1 ( K vs D Crossover : TIS_STO_XO )

Example using Method 2 ( TIS_Reversal )

Watch this YouTube Video for more information

2016 Live Trading Webinars

2016 New Trading Webinars

Session #1 ( EMA Crossover ) August 18, 2016

On this 1st webinar we start explaining a classic and easy Setup ;

• The Crossover of 2 Moving Averages

To trade this Setup you only need an EMA, an indicator present on all Trading Platforms.
On this video we learn how to select a pair of moving averages and how to use the threshold to avoid having fake signals on slow moving markets or sideways conditions.

This Setup can be Created, Visualized and its Signals automated with Markers Plus for Ninjatrader.

Learn More about Markers Plus :

Trade Setup using 3 Exponential Moving Averages

Hello! Friends!

We meet again to share 2 easy Setups using 3 EMA's:
 ( valid also for other averaging lines like HMA, SMA, etc) .

We know that the EMAs are the most basic indicators

They can have a  Slow ( S) , Medium ( M) and Fast ( F) Period

Example:   F 10  /   S 50 / M 20

1) Set Up: Enter the Market when the 3 lines align in same direction and order.

2) Set up: The Crossover of Lines F ( Fast )  with M  ( Medium)
are filtered according to the  S ( Slow) line position.

Este cruce alcista esta filtrado porque esta por debajo de la linea negra.


Find more details on this YouTube Video :