Using Stochastic Oscillator With Multiple Time Frames

The following is an interesting video I got in youtube about using stochastic oscillator with multiple time frames. Multiple time frames mean daily chart and hourly chart. Open daily chart and place stochastic oscillator on that with levels 30 and 70. If the trend is downwards the daily chart shows the stochastic oscillator moving averages go downwards from 70 to 30. At this point we have to enter sell trades in hourly chart based on the stochastic oscillator. So how can we enter sell trades in hourly chart? In the hourly chart if the price reaches the overbought region that is stochastic oscillator moving averages are above 70 line and at this point the moving averages crosses each other and trying cross below the 70 line enter a sell trade. Wait until the stochastic oscillator moving averages in the hourly chart reaches the oversold region or until the moving average lines cross each other and close the trade. Check the following video.

The following is the analysis I did for EURUSD currency pair.

1) The following is the EURUSD daily chart and I highlighted the region where stochastic oscillator was going down from the overbought region to the oversold region. I highlighted the only the region where the stochastic oscillator was trying to cross below the 70 line and was trying to cross above the 30 line.

EURUSD Daily Chart

The following is the EURUSD hourly chart for the same time of the above daily chart and I highlighted the regions where stochastic oscillator was moving from the overbought region to the oversold region and I also written down the number of pips. As you can see it is working. I have verified for other places and also other currency pairs and it is working good. Check yourself and let me know if this technique helps you.

EURUSD Hourly Chart