Stochastic oscillators can be a valuable tool for mechanical forex traders. Yet, traders often use stochastics together with numerous unrelated indicators, and the results are generally ho-hum.

Like some other traders, I’ve found that using a single stochastic oscillator usually doesn’t produce consistent winners. One stochastic by itself doesn’t seem to yield eye-popping gains.

The good news is that a Dual Stochastic forex trading system can produce excellent results. I’ve discovered that a winning strategy can be built simply based on dual stochastic indicators, with very little else to clutter the picture.

I’ve enjoyed excellent results by using two stochastic oscillators together – one slow, and the other fast – in order to find trading opportunities.

When used with the appropriate parameters, a system programmed to monitor dual stochastic indicators can signal when the price of a forex pair is trending yet overextended during a period of short-term retracement.