Free Forex Indicators (MT4), Trend Following Indicators

Stochastic Threads Indicator

The Stochastic Threads Indicator is an MT4 momentum tool specially developed for trading forex, stocks, ETFs, commodities, and cryptocurrencies.

Identifying the correct momentum is one of the most important parts for technical traders. Even though you’re good with price action analysis, you require to be well aware of the market trend condition for making precise trading decisions. The Stochastic Threads Indicator delivers the ultimate demonstration of the market sentiments helping you to filter potential trade signals.

In this guide, we’ve discussed how to apply the Stochastic Threads Indicator in MT4 to identify potential trading opportunities.

Stochastic Threads Indicator Overview

Stochastic Threads Indicator overview

Stochastic Threads Indicator suits multi-timeframe charts in MetaTrader 4 platforms. Moreover, it generates effective momentum signals on any financial chart including forex, cryptos, stocks, etc.

Stochastic Threads Indicator Explanation

Stochastic Threads Indicator explanation

The blue bands of the indicator represent the %K, and the green lines show the %D levels. When the blue lines move above the green cloud, we consider it a bullish momentum signal. Conversely, the green cloud above the blue levels indicates a bearish momentum.

The fact is, the Stochastic Indicators only signal momentums and don’t provide price level analysis support. Therefore, it is ideal to consider an S/R tool or pivot point indicator alongside Stochastics Threads so that you can count more confirmation to your entries.

Once you activate a buy or sell order, wait for an opposite crossover signal in the indicator window for deciding a trade exit.

Buy Signal Generation with Stochastic Threads Indicator

Stochastic Threads Indicator buy signal
  • The price breaks above the recent high or rebounds from a support level.
  • The blue lines of the Stochastic Threads move above the green cloud.
  • Stop-loss below the recent market low.
  • Exit on a bearish crossover.

Also Read: Exness Review – Is it The Best Forex Broker?

Sell Signal Generation with Stochastic Threads Indicator

Stochastic Threads Indicator sell signal
  • The price moves lower than the recent high or flips from a resistance.
  • The green cloud of the indicator appears above the blue lines.
  • Stop-loss above the current market high.
  • Exit on a bullish crossover signal.
Share on:

I have been actively trading the financial markets since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

Leave a Comment

About Trend Following System

Trend Following System's goal is to share as many Forex trading systems, strategies as possible to the retail traders so that you can make real money.

Risk Warning: Trading in the forex market is very risky. Thus, it is may not be for everyone. A highly leveraged position can work against the trader when the trade does not work as expected. Trading in the forex market can cause to lose a significant portion of the capital or all of the capital. It is crucial to learn about the trading and gain enough experience in the demo account before trading with real money. The trading strategies published on this website do not guarantee profit as the market is dynamic and unpredictable. The past performance of a strategy is not the indicative of future performance. Trend Following System will not accept any kind of liability or damage caused by trading the strategies published on this website.