Stochastic Signals Indicator is an updated version of world’s best momentum indicator Stochastic Oscillators. This tool can be one of the best Forex scalping indicators that you have ever experienced if you can use it in a correct manner. Since, it has been designed mainly for Forex scalping purposes; short-term traders get an extra advantage on detecting the swing levels of the market correctly than ever.
Stochastic Signals Indicator can be applied at any Forex currency pair window and fits best with M5 and M15 charts. The only thing required is, you’ll have to follow its trading rules while trying it in a consistent basis.
Stochastic Signals Indicator Overview
Once the installation is done at your Forex mt4 terminal and load Stochastic Signals, your trading chart will be appeared as the following image:
Stochastic Signals Indicator plots the signals with the same manner as old Stochastic version but with better accuracy. %D (yellow) crosses above the %K (blue) to plot the bullish crossover and signals a possible bullish move is ahead. In a contrary a bearish cross over occurs when %K moves above the %D signaling potential bearish rallies. These crossovers are signaled with up/downward arrows. Its value reaches below 30 means the oversold condition and above 70 is considered as the overbought condition of the market respectively.
Stochastic Related Fx System: RSI and Stochastic Trading System
Stochastic Signals Indicator: Buy Parameters
- Stochastic Signals plot bullish crossovers with upward arrows
- The crossover occurs below its 30 (oversold) level
- Enter buy when the above conditions are met
- Put the stop loss limit below the current swing low
- Exit long whenever the bearish crossover occurs and the value drops below its 70 level
Stochastic Signals Indicator: Sell Parameters
- Stochastic Signals plot bearish crossovers with downward arrows
- The crossover occurs above its 70 (overbought) level
- Enter sell when the above conditions are met
- Put the stop loss limit above the current swing high
- Exit short whenever the bullish crossover occurs and the value jumps above its 30 level