These rules are more efficient on a larger time frame preferable from 15mins- 4hours. This is not to say the rules are not applicable on other time frames.
Definition of some terms;
Price trends: in this context; I would like to define price trend as the current /present direction of “at least” the last 2-candlestick been formed irrespective of the timeframes.
Direction of Stochastic oscillator; if both lines move in the same direction, they move in the direction of the trend. If both lines move/face up, price trend is upward. If both lines move/face downwards, trend is down and if both lines face east (i.e horizontal) then trend is flat.
Direction of Relative Strength Index; The lines always move in the direction of the trend and also shows you ahead of time the direction price trends tends to head. If R.S.I line moves/face up price trend is upward or price trend should change direction in the nearest future towards an uptrend, If the R.S.I line moves/face down price trend is downwards or price trend should change towards a downward direction.
3 Wining Rules are;
On whatever timeframes;
1. If price trends moves in the same direction with the stochastic oscillator, go for it.
2. If price trends moves in the same direction with the R.S.I line, go for it.
3. If price trend moves in the same direction with the R.S.I and the stochastic oscillator, double your risk and go for it.
Definition of some terms;
Price trends: in this context; I would like to define price trend as the current /present direction of “at least” the last 2-candlestick been formed irrespective of the timeframes.
Direction of Stochastic oscillator; if both lines move in the same direction, they move in the direction of the trend. If both lines move/face up, price trend is upward. If both lines move/face downwards, trend is down and if both lines face east (i.e horizontal) then trend is flat.
Direction of Relative Strength Index; The lines always move in the direction of the trend and also shows you ahead of time the direction price trends tends to head. If R.S.I line moves/face up price trend is upward or price trend should change direction in the nearest future towards an uptrend, If the R.S.I line moves/face down price trend is downwards or price trend should change towards a downward direction.
3 Wining Rules are;
On whatever timeframes;
1. If price trends moves in the same direction with the stochastic oscillator, go for it.
2. If price trends moves in the same direction with the R.S.I line, go for it.
3. If price trend moves in the same direction with the R.S.I and the stochastic oscillator, double your risk and go for it.
