A simple long-term T/F Stochastic Trick You Will Only Learn Here for EIGHTCAP:XAUUSD by Easy_Explosive_Trading

https://www.tradingview.com/x/F86XVLgk/

Cast your minds back to the end of 2015 guys. I know you probably have no recall on the Gold-price.

So let me tell you how the Gold price was behaving at the end of 2015.

For several years prior (approximately) 2012-2015 the Gold Price was trending down to a support level around December 2015.

Now, take a look at the 3 MONTH-Chart for XAU USD. What do you see when looking at the 2nd bottom of chart indicator the Stochastics. Scan from left to right from 2007 to 2024. How many times does it get over-sold under the crucial 20 level. Do you get my drift?

Just prior to December 2015 the Stochastic on the 3M chart crossed-down below the 20 level. But it would've been pressing-down-hard at the floor so you would not be buying yet.

But now, look what happens to price around December 2015 when the 3-MONTH-STOCHASTIC INDICATOR crosses up the Green-20 line. You are correct, price starts to rally-hard.

Forget the so-called gurus selling the b.s. indicators guys. Stochastics and especially on the Higher-Time-Frame is the "KING" of all indicators. It's only let-down is that it does tend to give you a road-map of when to exit your trade. That road-map can be achieved tracking the MACD, which incidentally, the MACD got you into a trade here in Gold not long after the Stochastic crossed-up the 20, there was a Bullish cross-up of the MACD lines. The lower under the zero line this MACD cross occurs. Following the MACD and RSI can actually create a road-map like you are driving a car and trying to avoid an interest, I might explain this another time.

But again, nobody will teach you this trading secret on the Highertimeframes, you will only learn it from the 100% free subscription service delivered by me here at easy_explosive_trades. Just imagine buying 1 lot in XAU USD and capitalising on that 138% move. I have not done the maths.

These are the big trades I look for on the highertimeframes. I started investing and trading during the GFC in 2008 but in 2015 I did not know about this very insider high-time-frame trick using the number 1 indicator, the King-Stochastics, it get you into trades on HTF with needle point accuracy.

Nobody showed me this trick. I work these things out myself. I wanted to share it with you. As I am proud to have you part of my channel.

Cheers,
Chris
easy_explosive_trader
* Trading is risky. Don't rely solely on my investment advice.

Monday's trades: We are bidding up the Silver price & Palladium. Both of these and especially Palladium are bullish on the HTF.

Hey..... forget these gurus with their 72 day moving averages & 171 day moving averages. You make money sticking to the basics in trading.

Finally, I encourage you to, if you take my trades, to always risk no more than 0.25% to 0.50%. I endeavour always to give you fantastic RR not this 1:1 crap that the expensive subscriptions in Gold and Currency's charge. I make enough money trading, I don't need to make money out of you.

Note

https://www.tradingview.com/x/F86XVLgk/

Cast your minds back to the end of 2015 guys. I know you probably have no recall on the Gold-price.

So let me tell you how the Gold price was behaving at the end of 2015.

For several years prior (approximately) 2012-2015 the Gold Price was trending down to a support level around December 2015.

Now, take a look at the 3 MONTH-Chart for XAU USD. What do you see when looking at the 2nd bottom of chart indicator the Stochastics. Scan from left to right from 2007 to 2024. How many times does it get over-sold under the crucial 20 level. Do you get my drift?

Just prior to December 2015 the Stochastic on the 3M chart crossed-down below the 20 level. But it would've been pressing-down-hard at the floor so you would not be buying yet.

But now, look what happens to price around December 2015 when the 3-MONTH-STOCHASTIC INDICATOR crosses up the Green-20 line. You are correct, price starts to rally-hard.

Forget the so-called gurus selling the b.s. indicators guys.

Stochastics and especially on the Higher-Time-Frame is the "KING" of all indicators. It's only let-down is that it does tend to give you a road-map of when to exit your trade. That road-map can be achieved tracking the MACD, which incidentally, the MACD got you into a trade here in Gold not long after the Stochastic crossed-up the 20, there was a Bullish cross-up of the MACD lines. Now the lower under the zero line this MACD cross occurs the more bullish & the reverse if you are taking a short.

Following the MACD and RSI can actually create that road-map I was referring to, like you are driving a car and of course scanning the roadway with your focus and attention to avoid an accident on the road, so to can the MACD help you to navigate your trade and when to exit your trade. But it gets complicated and I don't want to confuse you. Getting out of trades and its timing it is always harder than your entry.

Incidentally, when the Monthly-Stoch' was crossing up on the 20 zone at end of 2015, there would've always been a confluence of similar Stocastics pressing up on the 20 and converging concurrently, for example you may have seen, I would bet this, possibly the Weekly and 4Hour and 15 crossing up the 20 concurrently.

Does this Stochastic trick work 100% of the time even on the very high T/Fs. No way. No indicator gives you 100% trading success. For example, if I saw this 3Month Stochastic crossing up the 20 zone I would be scrambling the charts for more confluence. I would be studying EMA moving averages on hightimeframes and low T/F's. Are the EMA's crossing up and crossing over each other? Are they aligned properly 9ema / 20ema / 50 ema / 200ema aligned under each other and the closer together at that time the more bullish, do I have a nice ascending curve in the 200 ema?

On other timeframes what patterns am I seeing? I bet there was some bullish W/bottoms at the end of December 2015 on the gold chart, I bet there was a bullish Cup 'n' Handle on a couple of timeframes, what about a bullish Head n Shoulders on the 1HR, how about a contraction wedge on the 30m that looks to break out.

I scan multiple timeframes constantly and this is what you have to do if you want to beat the market-makers and big banks betting against you.

I don't listen or read news, I listen to chill-music-Ibiza tunes in surround sound and this keeps me relaxed while trading. I get my news and possible downturns in the market by regularly watching the VIX-index. I even set alerts when big percentage moves are made in the VIX.

The gold price tanked about a month when the Vix skyrocketed to record levels I think it was. I immediately closed my longs and got short for several hours guys. I wont skite about how much money I made in that short. I could see that VIX was increasing and not coming down so I sold into the short gold even more aggressively. I break my margin I sell so hard sometimes even when I am in profit, because of course price always retraces when coming down or up.

There you have it guys. My entire trading strategy, almost. I am in a good mood today. So I thought I would share.

Finally, nobody will teach you this trading secret on the Highertimeframes, you will only learn it from the 100% free subscription service delivered by me here at easy_explosive_trades. Just imagine buying 1 lot in XAU USD and capitalising on that 138% move. I have not done the maths.

These are the big trades I look for on the highertimeframes. I started investing and trading during the GFC in 2008 but in 2015 I did not know about this very insider high-time-frame trick using the number 1 indicator, the King-Stochastics, it get you into trades on HTF with needle point accuracy.

Nobody showed me this trick. I work these things out myself. I wanted to share it with you. As I am proud to have you part of my channel.

Cheers,
Chris
easy_explosive_trader
* Trading is risky. Don't rely solely on my investment advice.

Monday's trades: We are bidding up the Silver price & Palladium. Both of these and especially Palladium are bullish on the HTF.

Hey..... forget these gurus with their 72 day moving averages & 171 day moving averages. You make money sticking to the basics in trading.

Finally, I encourage you to, if you take my trades, to always risk no more than 0.25% to 0.50%. I endeavour always to give you fantastic RR not this 1:1 crap that the expensive subscriptions in Gold and Currency's charge. I make enough money trading, I don't need to make money out of you.

Note

Only myself and the Big-Bankers know this trick. Try it historically and see how it works.

Note

Yes correct, a cross up of the stochastic right on the 20 green line is your buy entry. IT MUST be clearly CROSSING-UP not down on the 20, if it were crossing down the 20 or 80 up in the overbought it would be a sell signal. We look for alignment in the MACD & RSI converging & with the Stochastics, but be aware the MACD tends to lag a bit, it's a little sleepy all the time, but also very powerful like the Stochastics on hightimeframes. RSI is similar and often comes out of overbought / oversold in unity with Stochastics. We then look for much more confluence on multiple timeframes before taking the trade. Winning at trading is about maximising your probability. When I know I have nailed it, I scale in with my entire margin.

Note

Regarding RSI, change the value from 14 to 5 or 6. When you change the RSI to 5 or 6 you will get more accurate signals than the default 14. 14 is too smooth.

Stochastic settings, you want to use the default, usually 14, 2,2 but 14 1,2 or 14 2,1 will work.

Note

I use a Stochastics Indicator from tradingview and its free.
It is aptly called Stochastic Divergence and I use the default settings 14, 2(d), 1(k).
The best MACD is called MACD Crossover by Potter.

Note

Just finally, I know this has been a longish thread, about buy/sell signals using the Stochastics. They are very accurate I find and you would buy on a cross up of the 20 green line (80/20 line) as the Stochastic is coming out of the oversold zone. Stochastic buy and sell signals are more accurate the higher timeframe you go.

But here is the thing. Please read on. This is important.

You saw the magic above in the Gold chart XAUUSD 3-Month Historical chart that went back to the GFC, when the Stochastic Indicator was applied to this 3-Month Chart, but that's right 3 Month candles. You could see from the chart that the oversold area, that is below the 20 zone only occurred once over nearly 20 years around that 2015 period when the Stochastic had become Oversold as the gold price had retraced from approximately 2012-2016.

But here is the things. I know I say that again. Although you get a very clear signal to buy Gold in April of 2016 on the 3 month chart which is also a 3 month candle, what I would be doing in reality is firstly noticing the Stochastic,

1. Going into the Oversold condition less than 20. I'm getting excited as a buy signal could be coming up.

2. But we saw that the 3-Month stochastic was oversold for quite a few months in 2015 and in early 2016 we got that magic cross-up into the 20 zone giving you a Buy-Signal to be possible go-long on Gold for a the next 10 years. Well take a look it never got oversold again.

3. What I would be doing in reality is probably not buying Gold in early 2016 from the 3 Month Stochastic. What I would do is get my cue from that higher timeframe 3-Month, but I would start applying the 1M and 1Week Stochastic to see whether they were down in the Oversold area below 20. You monitor these M and W Stochastics. Then as you hone in on their crossing up of the green 20 buy zone in Stochastics timeline/chartline, you then switch to the Daily and finally after some trial and error you finally accurately get your Buy signal from the 4HR Stochastic as it crosses up on the 20. The 4HR is the sweetspot for Stochastic, it will just be more accurate and you get in earlier from the Oversold as price heads up. If you buy from a Weekly Stochastic cross-up there can be a lot of price action and volatility but it's timing coming out of the oversold zone will never be as accurate as say the 4HR. You can even do a buy from a 15M Stochastic. This would be the most accurate of all.
I hope I have not confused anyone or even myself.

Note

Just finally, Stochastics / RSI / MAC-D Buy/Sell setups do work. Especially, the most accurate on the 1HR timeframe and above. When you get the RSI coming out of oversold or overbought and crossing up on the 30 line (buy) or crossing down on the 70 line (sell) at the same converging-time as the Stochastics is coming out of oversold or overbought & is crossing up the 20 line (buy) or crossing down it's 80 line (sell), getting the STOCH'S & RSI converging at the same time by crossing these oversold/overbought lines can stage massive reversals in trading anything. Then a low and deep cross up of MACD lines below zero can give you a 3rd confluence to buy or a cross down up and high above zero to Sell. Often MACD is more lagging often it is also right there doing the heavy lifting with RSI and STOCHASTICS out of these oversold and overbought zones. But it does not stop with indicators, as I mention above I also look for more confluence to confirm my bias is right that a big buy or big sell is coming. I don't like to talk much about how much money I make or sometimes lose, but I once traded the ASX200 index applying this RSI/stochastics/macd on the 5m chart and I entered big lot size on the cross up and in the space of about 15 seconds I closed the trade with 15k. But I would never recommend this to you because it is very risky and weak on the very low timeframe and price often falls through the support level, I got lucky that is all it was, in fact don't use this strategy on any timeframe under 1hr is my advice. Do it with small lot size to see how you go. The 1HR and 4HR timeframes are great for this strategy and remember to have other confluence and be trading in the correct direction in accordance with your 200ema.

A simple long-term T/F Stochastic Trick You Will Only Learn Here

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