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The StochInMA is an innovative VertexFX client-side indicator that identifies trend reversals and trading levels.
The StochInMA as the name suggests is a combination of the Moving Average and the Stochastic Oscillator.
The Moving Average by itself provides the direction of the trend and critical reversal levels. When the price is above the Moving Average the trend is considered bullish. Contrarily, when the price is below the Moving Average the trend is considered bearish. However, Moving Average by itself has a lag and results in late entries or exits.
The StochInMA adds a new dimension to the Moving Average indicator by color coding the Moving Average based on the Stochastic Oscillator levels. Traders find the Stochastic Oscillator useful in identifying trend reversals. When the Stochastic Oscillator crosses above the upper threshold it typically is a sign of bullish breakout, and below the lower threshold a sign of bearish breakout. By coloring the Moving Average based on the strength of the Stochastic Oscillator, traders get a better perspective of the strength of the trend. One of the major advantages of the StochInMA indicator is it prevents traders from false entries and early exits.
BUY / EXIT SHORT - Enter LONG (or exit SHORT) when the StochInMA indicator turns BLUE from either GREEN or RED. The stop-loss can be set to the nearest Swing Low. Traders are advised to employ a trading stop when the trade turns profitable. Do not enter fresh LONG trades if the indicator turns BLUE from YELLOW.
SHORT / EXIT LONG - Enter SHORT (or exit LONG) when the StochInMA indicator turns RED from either GREEN or BLUE. The stop-loss can be set to the nearest Swing High. Traders are advised to employ a trading stop when the trade turns profitable.Do not enter fresh SHORT trades if the indicator turns RED from YELLOW.
The StochInMA as the name suggests is a combination of the Moving Average and the Stochastic Oscillator.
The Moving Average by itself provides the direction of the trend and critical reversal levels. When the price is above the Moving Average the trend is considered bullish. Contrarily, when the price is below the Moving Average the trend is considered bearish. However, Moving Average by itself has a lag and results in late entries or exits.
The StochInMA adds a new dimension to the Moving Average indicator by color coding the Moving Average based on the Stochastic Oscillator levels. Traders find the Stochastic Oscillator useful in identifying trend reversals. When the Stochastic Oscillator crosses above the upper threshold it typically is a sign of bullish breakout, and below the lower threshold a sign of bearish breakout. By coloring the Moving Average based on the strength of the Stochastic Oscillator, traders get a better perspective of the strength of the trend. One of the major advantages of the StochInMA indicator is it prevents traders from false entries and early exits.
BUY / EXIT SHORT - Enter LONG (or exit SHORT) when the StochInMA indicator turns BLUE from either GREEN or RED. The stop-loss can be set to the nearest Swing Low. Traders are advised to employ a trading stop when the trade turns profitable. Do not enter fresh LONG trades if the indicator turns BLUE from YELLOW.
SHORT / EXIT LONG - Enter SHORT (or exit LONG) when the StochInMA indicator turns RED from either GREEN or BLUE. The stop-loss can be set to the nearest Swing High. Traders are advised to employ a trading stop when the trade turns profitable.Do not enter fresh SHORT trades if the indicator turns RED from YELLOW.
