About the Double Smoothed Stochastic Blau Indicator
The Double Smoothed Stochastic Blau for MT5 is a momentum indicator designed to detect shifts in market direction using a smoothed stochastic calculation.
It combines the classic stochastic oscillator with two smoothing filters, which helps reduce noise and produce more stable trading signals.
The indicator plots two colored signal lines directly on the price area.
A blue line reflects bullish momentum, while an orange line indicates bearish market pressure.
These color changes help traders quickly recognize when momentum begins to favor buyers or sellers.
The additional smoothing filters make the signals less sensitive to short-term fluctuations.
This allows traders to focus on stronger momentum moves rather than reacting to minor price changes.
Scalpers often prefer using it during the London and New York trading sessions, when market activity increases and momentum signals tend to develop more frequently.
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Double Smoothed Stochastic Blau.mq5 Indicator (MT5)
Key Features
- Momentum indicator based on a double smoothed stochastic calculation.
- Blue and orange signal lines highlight bullish and bearish conditions.
- Two smoothing filters reduce short-term market noise.
- Works on all timeframes and currency pairs.
- Customizable inputs including stochastic period and smoothing periods.
- Useful for both scalping and short-term trend trading.
Indicator Chart
The Double Smoothed Stochastic Blau indicator appears in a sub-chart window and displays colored signal lines that reflect changing market momentum.
When the blue signal line becomes active, it suggests strengthening bullish pressure.
When the orange line appears, it indicates that sellers may be gaining control of the market.
Guide to Trade with Double Smoothed Stochastic Blau Indicator
Buy Rules
- Wait for the blue signal line to appear beneath the main price chart.
- This signal suggests that bullish momentum is starting to build.
- Open a buy trade after the signal line confirms the upward bias.
- Monitor price movement as long as the blue line remains active.
Sell Rules
- Wait for the orange signal line to appear beneath the main price chart.
- This indicates that bearish momentum may be entering the market.
- Open a sell trade once the orange signal line confirms the move.
- Manage the position while the orange signal remains visible.
Stop Loss
- Place the stop loss slightly below the most recent support level for buy trades.
- Place the stop loss slightly above the nearest resistance level for sell trades.
- Keep position risk aligned with your trading plan.
Take Profit
- Close the trade when the opposite signal line appears.
- A minimum risk to reward ratio of 1:1 can also be used as a target.
- Partial profit taking may help secure gains during strong moves.
MT5 Double Smoothed Stochastic Blau Day Trading Strategy
This strategy combines the Double Smoothed Stochastic Blau Indicator with the Instantaneous Trend Filter Indicator to create a clean and reliable day trading system.
The Double Smoothed Stochastic Blau is a refined version of the classic stochastic oscillator.
It applies double smoothing to reduce noise and produce clearer momentum signals.
The Instantaneous Trend Filter indicator acts as a directional guide.
A blue line indicates a bullish trend, while a magenta line signals a bearish trend.
Using a trend filter alongside a momentum oscillator helps reduce false signals and improves trade accuracy.
This strategy works best on M5 and M15 charts during active sessions such as London and New York.
Buy Entry Rules
- Confirm that the Instantaneous Trend Filter line is blue, indicating a bullish trend.
- Wait for the Double Smoothed Stochastic Blau signal line to turn blue.
- Enter a buy trade at the close of the signal candle.
- Place a stop loss below the recent swing low or below a nearby support level.
- Close the trade when the stochastic line turns orange or when the trend filter line turns magenta.
Sell Entry Rules
- Confirm that the Instantaneous Trend Filter line is magenta, indicating a bearish trend.
- Wait for the Double Smoothed Stochastic Blau signal line to turn orange.
- Enter a sell trade at the close of the signal candle.
- Place a stop loss above the recent swing high or above a nearby resistance level.
- Close the trade when the stochastic line turns blue or when the trend filter line turns blue.
Case Study 1: EURCHF M15 London Session Buy Trade
On EURCHF M15 during the London session, the Instantaneous Trend Filter line turned blue and remained stable, confirming a bullish trend.
The Double Smoothed Stochastic Blau line turned blue after a small pullback, indicating a fresh momentum shift.
A buy trade was opened at the close of the signal candle.
The stop loss was placed below a recent support level where price had previously reacted.
The trade was closed when the stochastic line turned orange, showing that bullish momentum had weakened and the upward move was ending.
Case Study 2: NZDJPY M5 New York Session Sell Trade
On NZDJPY M5 during the New York session, the Instantaneous Trend Filter line turned magenta, confirming bearish conditions.
The Double Smoothed Stochastic Blau line turned orange during a small retracement, signaling a sell entry.
A sell trade was opened at the close of the signal candle.
The stop loss was placed above a recent resistance level where price had previously failed to break higher.
The trade was closed when the stochastic line turned blue, indicating that selling pressure was fading and a reversal was likely.
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Double Smoothed Stochastic Blau.mq5 Indicator (MT5)
FAQ
What makes the Double Smoothed Stochastic Blau different from a regular stochastic?
The indicator uses two smoothing filters applied to the stochastic calculation.
This reduces market noise and produces smoother momentum signals compared to a standard stochastic oscillator.
Which settings can be adjusted?
Traders can modify the stochastic period, smoothing period 1, smoothing period 2, signal or trigger period, and the applied price.
When does this indicator perform best?
Many traders report stronger momentum signals during the London and New York trading sessions, when market volatility tends to increase.
Can this indicator be combined with other tools?
Yes. It is often combined with support and resistance analysis or trend indicators to confirm trade entries and improve overall timing.
Summary
The Double Smoothed Stochastic Blau indicator helps traders track momentum changes using a filtered stochastic approach.
The smoothing process removes much of the short-term noise that often appears in fast moving markets.
Its colored signal lines allow traders to quickly identify whether buyers or sellers currently dominate the market.
This makes it useful for spotting new trading opportunities and confirming momentum shifts.
