361# Doda Stochastic Scalping System
Forex Scalping system with Doda Stochastic indicator
Submit by JanusTrader 14/07/2013
This Scalping system is based on Doda Stochastic but is inspired from un scalping system of Daniel Malaby. Doda Stochastic indicator is Stochastic indicator with less noise. Stochastic Doda is an evolution of the standard stochastic but it is necessary to study the setting. Doda stochastic is the best of the standard stochastic.
I recommended as Stochastic indicator standard : Doda Stocastic indicator.
Time Frame 1 min.
Markets: forex, futures, CFD, Commmodities and Stocks.
Forex Indicators:
We will be using two Doda Stochastic indicators on the
same 1-minute chart. The first Doda Stochastic will be a
less sensitive “slow” Doda Stochastic (Doda Stochastic #1) and the other will be a more sensitive “fast” Doda Stochastic
(Doda Stochastic #2).
Setting:
First Doda Stochastic(slow 15, 30, 9), add levels:(90-10)
Second Doda Stochastic (fast 8,13,9),add levels: (90-70-40-5).
Rules
Long Trades
Entry for long trades:
Criteria #1: Doda Stochastic #1 must be 95 or above.
Criteria #2: doda Stochastic # wait 2 must crosses upward 40 level
Implementation: You wait for Doda Stochastic #1 to reach
85 or above. Once it reaches that level it means that
the market is in a strong up-trend. At this point you
would want to enter the market long but you want to
enter in a very good risk/reward area. Doda Stochastic # 2
helps you achieve this objective.
You wait for Doda Stochastic #2 crosses upward 40 level and you enter a long trade at that exact moment.
Exit rules for long trade:
Stop loss: SL placed 25 pips from entry price
Profit objective: Either 20-30 pips or Doda Stochastic #2 (depends by currency pairs),
reaches the 95 level, whichever occurs first.
Profit Target fast 15 pips.
Long trade example :Doda Stochastic Scalping System
Doda Stochastic Scalping System
Doda Stochastic indicator
Entry:
A – Doda Stochastic #1 reaches 90 so we immediately
look to Doda Stochastic #2 and wait crosses upward 40 level
B – At the exact moment that Doda Stochastic #2 crosses upward 40 level 40, the price of GBP/USD is 1,5099
We opened a long position at that exact price and
are now in the trade.
Exit
A – Our stop loss is placed 25 pips from entry
B – The market keeps moving - our stop loss of
pips (at 1,5074) is active but is not reached
C – Stochastic #2 reaches the 95 level
D – We exit the market at the exact price the pair is
at when Stochastic #2 reaches 95, i.e. 1,5103
E- Profit Target 15 pips.
Entry for short trades:
Criteria #1: Doda Stochastic #1 must be 10 or less
Criteria #2: Doda Stochastic #wait 2 must crosses downward 70 level
Implementation: You wait for Doda Stochastic #1 to reach
10 or less. Once it reaches 10 or below it means that
the market is in a strong down-trend. At this point
you would want to enter the market short but you
want to enter in a very good risk/reward area, just
as with the long trade covered earlier. Doda Stochastic #2
helps you achieve this objective.
You wait for Doda Stochastic # 2 must crosses downward 70 level and you enter
a short trade at that exact moment.
Exit rules for short trade:
Stop loss: SL placed 25 pips from entry price
Profit objective: Either 20-30 pips or Doda Stochastic #2 (depends by currency pairs),
reaches the 5 level, whichever occurs first;
Profit Target fast 15 pips.
Short trade example :Doda Stochastic Scalping System
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