EURUSD is in a neat horizontal channel, hitting the ceiling, bouncing on the floor and doing it again. I came upon a video (see below) where they explain that stochastics are interesting in this case because the price has a higher correlation with stochs in such configuration (and I insist, in THIS ranging oscillating waves). Therefore the stoch (I used their params, 14, 5, 3) is a good signal with the classical 80/20 levels. I like Ichimoku a lot but sometimes you need extra mathematical information that is not directly/easily visible in Ichimoku.
For the trades TP/SL/entries, Ichimoku is used. As expected, the cloud is more or less in the middle of the channel and price is going around it. We can define two strategies, the first one is based upon main supports/resistances as defined by the highest highs and lowest lows. The second relies upon the level as defined by the lagging span (ie. upon the close). In both cases, the entry occurs when the levels of interest are broken AND the stochs fullfil the classical "BUY" rule (above 20 + clear upward trend).
Video (in french, around 42 min): www.youtube.com/watch?v=wDdHhe9R...
For the trades TP/SL/entries, Ichimoku is used. As expected, the cloud is more or less in the middle of the channel and price is going around it. We can define two strategies, the first one is based upon main supports/resistances as defined by the highest highs and lowest lows. The second relies upon the level as defined by the lagging span (ie. upon the close). In both cases, the entry occurs when the levels of interest are broken AND the stochs fullfil the classical "BUY" rule (above 20 + clear upward trend).
Video (in french, around 42 min): www.youtube.com/watch?v=wDdHhe9R...