This strategy uses two charts - 10-minute chart and hourly chart; and 200-bar (200 hour, for example) MA and 4-bar slow stochastic study. To identify a trend you would look for situations where the price is consistanctly above or below the moving averages on both charts.
Once trend has been identified:
IF the market is no more than 20 points above (for going long) or 20 points below (for going short) the moving average
the fast stochastic line crosses above the slow stochastic line below 20 (for going long) or crosses below the slow stochastic line above 80 (for going short).
If these conditions are met it means that the currency is currently in a short term uptrend or downtrend and it has paused or pulled back and is ready to make a turn.
Stop loss should be set 10 points below the 200-period moving average on 10-minute chart. For going short, place the stop 10 points above the 200-period moving average on a 10-minute chart.
