The Stochastic indicator (STO) for Metatrader 4 is a popular technical oscillator used to predict possible trend reversals.
It can also be used to identify overbought and oversold price levels.
The Stochastic oscillator is scaled between 0 (oversold) and 100 (overbought).
Buy & Sell Trade Example
- Open a buy trade when the Stochastic oscillator turns back above 20 from below and the market is in an uptrend.
- Open a sell trade when the Stochastic oscillator turns back below 80 from above and the market is in a downtrend.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “Stochastic.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The picture below shows the Stochastic oscillator mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method while trading with the Stochastic Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Stochastic
Does the indicator repaint? No.
