Simple RSI/Stoch Combo Strat

johnnyonspot

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Hello all. I have an idea for a very simple strategy using the RSI and Stoch in combination in all TFs. In my albeit limited experience on a demo account I notice that a lot of times when either the RSI or Stoch indicate an OB/OS condition a pair may dip/rise a bit and return or even keep going the same direction, or simply go along at roughly the same level. But when both indicators agree within say five bars, the pair will usually react by falling if OB or rising if OS, i.e., one builds on the other. The specific periods I use are RSI(9) and Stoch (5,3,3), and use them--when they fall back/rise back up through the OB/OS lines--in conjunction with price action in entering the trade. My OB/OS levels for Stoch are 90/10, and for RSI are 80/20. Of course, the more extreme the levels, the more reliable the signal should be I think, and the faster you set the indicators the more trades there will be as well. I have requested that this strat be coded over on fxfisherman. Again, keep in mind I am a neophyte of neophytes when it comes to trading and what I say should, as with anything else in this game, be taken with a shaker of salt.:cheesy: Anyway, thoughts/constructive criticisms on this are most certainly welcome. The thing that is very appealing about it to me is its simplicity.:clap: It does not catch all the trades, of course, but it catches a lot of them and it seems these are high probability and allow tight stops, which is what I care about the most.

Cheers!

JOTS
 
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