Forex 4 Hour Stochastic EMA Trend Trading Strategy

Daily trading with the best stochastic trading strategy is the name of the strategy we will discuss today. As the name implies, this is a stochastic strategy suitable for daily traders. The stochastic strategy is very similar to the daily trading price action: simple price action strategy.

The only difference this time is that we incorporate a technical indicator in this strategy. Namely, the stochastic indicator. This is the best stochastic trading strategy because you can identify the inflection points of the market with precise precision.

Warning! This can make you a modern elite sniper trader. The stochastic indicator will only make you pull the trigger at the right time. A modern elite sniper trader only pulls the trigger in one operation when he is sure he can do a winning operation.

Our Trading Strategy Guides team is developing the most complete library of Forex trading strategies. Our goal is to help you change your operations.

Our favorite time frame for the best stochastic trading strategy is the 15-minute chart. This is because we have taken the time to try the best stochastic negotiation strategy.

We also tested the 15-minute TF again and again. If you are a daily trader, this is the perfect strategy for you. The stochastic strategy became one of the best stochastic strategies.

Although the stochastic indicator is a very popular indicator among traders, they have been using it incorrectly. Our team at Trading Strategy interprets the graphs and indicators in an unorthodox way. At the same time, it is very productive.

Daily trading may not be your thing, but you may be interested in operating in the higher terms, such as the daily chart. Do not panic! We support you. Our favorite MACD trend tracking strategy is the best trend tracking strategy. For each Forex strategy, we make sure to leave our own signature and make it simply the best. You can also read our best Gann Fan Trading Strategy.


Before moving forward, we must define the indicators you need for daily negotiation with the best stochastic negotiation strategy and how to use the stochastic indicator.

The only indicator you need is:

Stochastic indicator: this technical indicator was developed by George Lane over 50 years ago. The reason why this indicator survived for so many years is that it continues to show consistent signals even in these current times.

Without further ado, let’s get straight to the point and:

  • Define what is the stochastic indicator;
  • How to use the stochastic indicator;
  • What are the stochastic indicator settings?

The stochastic indicator is an impulse indicator that shows how strong or weak the current trend is. It helps you identify overbought and oversold market conditions in a trend. The stochastic indicator should be easily located on most trading platforms.

The stochastic indicator looks like this:

After extensive research and backtesting, we have discovered that this indicator is more suitable for daily trade. Indicators, such as MACD, are more suitable for swing trading. You should really take a look at our amazing MACD trend tracking strategy. We decided to share this with our commercial community recently.

Another reputable oscillator is the RSI indicator, which is similar to the stochastic indicator. We chose it above the RSI indicator because the stochastic indicator puts more weight on the closing price. This is the most important price no matter what market you operate in. This strategy can also be used for daily stochastic trading with a high level of accuracy.

Let me quickly tell you how to use the stochastic indicator and how to interpret the information provided by this amazing tool so you can know what you are negotiating. When stochastic moving averages are above line 80, we are in overbought territory.

On the contrary, when the stochastic moving averages are below line 20, we are in oversold territory.

Look at the example in the table below to see how to use the stochastic indicator.

So how does the stochastic indicator work?

The stochastic oscillator uses a fairly complex mathematical formula to calculate simple moving averages:

% K = 100 (C – L14) / (H14 – L14)


  • C = the most recent closing price
  • L14 = the minimum of the previous 14 trading sessions
  • H14 = the highest price negotiated during the same period of 14 days
  • % K = the current market rate for the currency pair
  • % D = 3-period moving average of% K
  • See below where to locate the% D and% K lines:

The mathematical formula behind this method works under the assumption that closing prices are more important for predicting overbought and overbought conditions in the market. Based on this assumption, the stochastic indicator works to give you the best trading signals you can find.