712# Stochastic envelopes

Stochastic envelopes is trading system based on the classic strategy Stochastic with Moving Average (Buy when Stochastic crosses upward and the price is above MA, Sell when Stochastic crosses downward and the price is below MA).

In this new strategy i use the stochastic envelopes with two moving averages.

This forex system is for intraday and swing trading.

Time frame 30 min or higher.

Financial Market: any.

Indicators:

Moving Average LWMA 21 period close;

Moving Average LWMA 50 period close;

Stochastic Envelopes ( default setting 80-20).

Trading Rules Stochastic Envelopes

Trading only in the direction of the trend

Trend up: MA21>MA50

Trend down: MA21<MA50

Buy

Trend up: MA21>MA50

Stochastic first go in oversold area, or , touch level 20, after crosses upward red envelope.

Sell

Trend up: MA21<MA50

Stochastic first go in overboughtarea, or , touch level 20, after crosses downward blue envelope.

Exit position is disretionary because with this method you can use more exit strategies. I preferred fast profit target because i have a good profitability.

Happy trading!!

In the pictures Stochastic envelopes in action.

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