Forex Indicator

I left the price out of my charts in this document so that you would concentrate on the stochastics. As you trade more and more using this stochastics you will learn how price reacts to the stochastics. This is a valuable tool and becomes second nature to you without even having to think about it.

Let the stochastics rule your decisions not the price. The price will move to make you think you are wrong. The price movements are used to manipulate your decisions. The stochastics tell the naked truth.

Practice with stochastics. Cover the price on your monitor and watch the stochastics move over multiple time frames and write down what you think the price is doing and will do. You will be amazed in a short time how well you can interpret what is happening in the market and how you can “predict” moves long before they happen as your brain absorbs the patterns.

Your greatest enemy will be human error and that feeling that you might miss a great trade if you don’t act now. If you are feeling that anxiety, take a step back and think it out. Am I too early? Too late? Does something not feel right? As you trade stochastics learn to listen to your gut. It is actually your brain saying

“this pattern is not right”

or

“this pattern is right”

Look at the charts I included here. This is about as close to fail-safe trading as you will find. If you get into a losing slump go back and just trade the optimum setups until you feel like a winner again.

Always, it is never about how many pips you make, but what the pips are worth that counts!

Filed under: Fundamental Analysis, Indicator, Technical Analysis, Trading Method