Forex Trading Articles

"DAILY 3" STOCHASTIC POSITION TRADING SYSTEM

INTRODUCTION

By Alan Benefield for Forexmentor Team
©2007, Currex Investment Services Inc.

Feburary 1, 2007

The Daily 3 Stochastic System is a quick visual method of finding good long term trading setups at the first glance of the charts.

I use a system of colors on price action as well as the other indicators. We will be using 15 EMAs (Exponential Moving Averages) with 5 indicators color coded on our charts. This sounds like a lot of indicators to worry about, but you will see that I have made this extremely simple to apply them all. We only use 3 when first looking for trading opportunities and then 2 more for confirmation. The two confirming indicators are optional. This system can be used with only the main indicators but I suggest to use them all. All EMAs are used to show resistance or support to price action and overall price trend.

My system is designed to be used by someone who works a day job and can not watch the charts during the main sessions. It also does not take months to learn this system. I feel that anyone can learn this in a few hours. We will be spending most of our time looking at the daily and weekly charts.

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