I am constantly on the lookout for different procedures of trading FX and have produced something somewhat different. It is a work in progress as I have not worked out the finer things. I am currently playing with this on the 4hr and 15 min time frames. I'll discuss the 15 minute setup only so as to not confuse the issue as there are some subtle differences.

Alright I utilize the MT4 charts. 15 min chart on GBP, EUR and EUR/JPY. Ijust utilize these charts to your setup but really trade off Oanda. I'm a EUR fan, but the other two pairs are likely better with this method due to their volatility.

Now I'm a huge believer in setting a target of state only 20 pips a day in total, which will do me. If that is effective, then you've got 100 pips for the week or 400 pips for the month, which can be nothing to gripe about. But just like a lot of traders, I too chase the big winners and go for a lot more. Sometimes it works, sometimes it does not.

Now to the setup. I use candles and magnify the chart right out. I also add the daily pivots simply to give me an notion of likely profit targets/turning points. Not an specific science but useful all the same.

I add one indior and it's enlarged to consume about half the screen. It is the Stochastics where I use the configurations of 8,4,4 and then select the'Linear Weighted' for your MA Method. Then I place the colours, for the Main, I utilize a bright color that is going to stand out, and also for the Signal, I use a very thing dotted line exactly the same color as the background. Then I add a bucket load of flat lines in periods of'5' from 0 to 100, which makes the 20, 50 and 80 horizontal lines a different color to the others. So now you should get an indior with a single line which cuts down and up through a lot of horizontal lines.

I normally start trading just before London opens and call it quits approximately 8hrs later. This is normally ample time to ch some winners. When I start trading I check to see how the stoch is heading. It is either down or up. If it's heading down, then I just wait for it to turn up, I get ready to go long. When it's been going down, it's been cutting through the flat lines. Eventually it will turn between 2 lines, and cut through a line or continue down throughout the next line down.

What I am looking for is a confirmed cut through the next line up. I will wait till the 15 minute candle has closed to confirm the change in management, and will enter on the open of this new candle. The same applies when I was searching for a change to the drawback.

Just some things to consider. It is most likely a safer commerce when the trend has changed from down to up, then I would favor the stoch line to cross below the 50 flat line as it might have been in oversold territory. The reverse applies for a change from up to down, appearing to be in the overbought area.

I will either set a profit target on the transaction or simply follow together with the stoch as long as it contiues heading in the same direction. This where I sometimes use the pivot lines to get an notion of resistance/support. Or I will close half of my position when a certain degree is made and then follow up the remaining half using a trailing stop. Various ways to deal with the trade once I'm in. Stop is usually set either 30-40 pips away or near a recent low or high over the 15 min chart.

I'll see if I could work out how to attach a chart to give a visual effect on this, but it's pretty obvious once you've got the right setup. That's the fundamentals of everything, so I hope I have not confused anyone too much. I welcome any comments or ideas. Cheers.