Swami Stochastic Indicator

Swami Stochastic Indicator helps you to identify the overbought and oversold condition of the market thus, enables you to sell from the high and buy from the low of the market momentum. It only uses an individual oscillator window and demonstrates the signals in a simple manner which enable traders with any level of experience to use apply it for real trading purposes.

Swami Stochastic Indicator is basically a scalping tool and produces short-term trading opportunities therefore, suits great with shorter timeframe charts like M1 to M15 within the MT4 trading platform. Furthermore, this indicator can be applied to trade all kinds of forex currency pair around the market.

Swami Stochastic Indicator Overview

After the installation of the Indicator at the MT4 terminal, your trading chart will appear like the following image

Swami Stochastic Indicator Overview

Swami Stochastic Indicator: Further Explanation

Swami Stochastic Indicator Explanation 
Swami Stochastic Indicator mostly produces short-term swing trading opportunities for its users. Its value drops below 20 means the market is in the oversold condition and its time to look for long opportunities. On the other hand, its value rises above 80 means the indicate in the overbought condition and indicates to go for short entries. Although, you’ll also need to look for the price-action signals before stepping in for the market entries. A bullish candle/bullish pin bar at the oversold condition of the market or a bearish candle/bearish pin bar at the overbought condition of the market can play an ideal role of confirmation of your buy/sell entries at the market.

Trending Indicator: Heiken Ashi Exit MT4 Indicator

Swami Stochastic: Buy Conditions

Swami Stochastic Buy Condition

  • The Indicator value drops below 20
  • A bullish bar is formed at the same time
  • Buy triggers at the break of the respective bullish bar’s high by the following candles
  • Set stop loss below the respective signaling bar’s low
  • Exit long/take profit whenever the indicator value hits above 80 

Swami Stochastic: Sell Conditions

Swami Stochastic Sell Condition

  • The Indicator value moves above 80
  • A bearish bar is formed at the same time
  • Sell triggers at the break of the respective bearish bar’s low by the following candles
  • Set stop loss above the respective signaling bar’s high
  • Exit short/take profit whenever the indicator value drops below 20 
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I have been actively trading stocks and currencies since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund which has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

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