Stochastic Cross Forex Pivot Points Strategy For MT4
The Stochastic Cross Forex Pivot Points Strategy For MT4 is a trading system which leverages off the use of two useful and reliable indicators. These indicators are known as the Stochastic oscillator and the Pivot Points indicator.
It is the way in which these two indicators are used which makes this strategy worth pursuing. Firstly the Stochastic oscillator is used to develop signals from the crosses which occur. This happens when the signal line of the stochastic oscillator crosses over the the normal anchor line. This is a classic use-case. However, to implement this strategy with the sole use of the stochastic oscillator poses a threat on your portfolio in terms of wins-ratio.
Hence why this strategy was created - to eliminate or to minimize the pitfalls of trading the stochastic crossover strategy in isolation. The beauty of this strategy is seen in the rules but before we get to that let me touch on the integration of the other indicator. The one indicator which improves the performance of the stochastic crossover strategy is the pivot points indicator. This is because it acts as a filter for you to be able to identify and prioritize quality reversal trade setups. Not every trade will be a win but your odds will improve provided you stick to the rules of the system.
Speaking of which - none of these rules are over-complicated. They are direct and easy to follow. In the case of a buy entry setup - you should wait for the arrow to appear which signals a buy below the fundamental or middle Pivot point line. Then for sell trade entry setups you should wait for a red arrow to appear above the middle pivot point line.
There is a perfect and simple reason for doing so. Above the middle pivot point line you find a set of resistance levels and below you find a set of support lines. So ultimately with reversals you are looking to sell at resistance where added buying is likely to be rejected and buy at support levels where further selling is hindered by buying pressure.
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