The Fast Stochastic Forex indicator for MT4 (Metatrader 4) provides overbought & oversold signals based on the fast stochastic trading algorithm.
The indicator reveals shorter-term oversold and overbought market conditions and is a popular scalper indicator.
The Fast Stochastic indicator can be used in multiple ways.
Buy & Sell Trade Example
- Open a buy position as soon as the indicator reading crosses back above 30 and the overall trend is upwards.
- Open a sell position as soon as the indicator reading crosses back below 70 and the overall trend is downwards.
The Fast Stochastic indicator can be used for both trade entry and exit, or as an additional confirmation filter for other strategies and systems.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “Fast_Stochastic.mq4” indicator for MT4
Indicator Chart (GBP/USD H1)
The example chart below displays the Fast Stochastic mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy to trade with the Fast 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.
Fast Stochastic + Alligator Scalping Strategy (MT4)
Introduction
This strategy merges the momentum strength of the Fast Stochastic (MT4) with the trend-filtering power of the Alligator (MT4).
The idea is simple: use Alligator to define when the market is trending, and Fast Stochastic to time entries within that trend.
This works best on short time frames such as 1, 5, or 15-minute charts.
Use it in active market hours when volatility gives you room.
It suits intraday scalpers who want structured entries and strict risk rules.
It is not for long holds or range-bound markets.
Setup
Add the Alligator indicator with default parameters (jaw, teeth, lips). Add the Fast Stochastic with standard settings (e.g., %K, %D).
Use pairs like EURUSD, GBPUSD, USDJPY.
Choose M1, M5, or M15 depending on how many signals you want.
Buy Entry Rules
- Alligator lines are opening upward: lips above teeth and teeth above jaw, all sloping higher (i.e., “Alligator is eating”).
- Fast Stochastic’s %K line crosses above %D line (an upward cross) and both are moving upward.
- Prefer the cross to happen below a threshold (e.g., below 50) to catch the momentum early.
- Enter long on the candle close that confirms both conditions.
- Stop loss: just below the recent swing low or below the Alligator jaw line.
- Take profit: first target = risk × 1.0. Second target = risk × 1.5 or 2.0.
- Alternatively, trail when Stochastic shows overbought (e.g., %K above 80 and turning down).
Sell Entry Rules
- Alligator lines are opening downward: lips below teeth and teeth below jaw, all sloping downward (i.e., “Alligator is eating downward”).
- Fast Stochastic’s %K line crosses below %D line (a downward cross) with downward momentum.
- Prefer the cross to happen above a threshold (e.g., above 50) to confirm strength.
- Enter short on the candle close, confirming both conditions.
- Stop loss: just above the recent swing high or above the Alligator jaw line.
- Take profit: first target = risk × 1.0. Second target = risk × 1.5 or 2.0.
- Or trail when Stochastic enters the oversold zone and turns up.
Advantages
- Filters trades to trending periods thanks to the Alligator’s trend detection.
- Fast Stochastic times entries within the trend, reducing lag in entries.
- Short time frames produce many opportunities.
- Clear stop and target rules help contain losses.
- Works on major pairs with tight spreads.
Drawbacks
- During ranging periods, you’ll get false signals or whipsaws.
- Fast Stochastic is more prone to noise, so it requires confirmation.
- Scalping demands focus, speed, and good execution.
- Spread and slippage eat into small profits if your broker’s costs are high.
- Late Alligator reaction may mean you miss the early part of a move.
Case Study 1 — EURUSD 5-Minute Trend Break
During the London session, the price was trending upward.
Alligator lines spread apart upward (lips > teeth > jaw).
Fast Stochastic gave a %K > %D cross near the 40–50 zone.
Entry placed on close. SL under recent swing low.
TP1 hit at 1× risk; move continued, trailing stop held remaining until cross back.
Clean profit.
Case Study 2 — USDJPY 1-Minute Quick Reversal
Alligator initially flat, then lips drop below teeth and jaw (trend downward).
Fast Stochastic %K crossed under %D above 60.
Enter short. SL above swing high.
TP reached 1× risk.
Later, Stochastic moved into oversold and began turning up, so exit remaining position early to avoid a reversal.
Strategy Tips
- Trade only when the Alligator clearly reveals a trend. Skip signals when it’s flat or intertwined.
- Prefer entries where Stochastic is crossing within favorable zones (not extreme) to catch momentum early.
- Use modest risk (e.g., 0.5–1 %) per trade. On fast timeframes, keep lot sizes small.
- Avoid trading around major news releases, as they may blow through SLs.
- Don’t hold overnight. This is a pure intraday scalping method.
By combining trend detection via the Alligator indicator with entry timing from the Fast Stochastic, you build a scalping system that filters noise and catches directional moves in short bursts.
Start on demo, refine parameters, and only use in liquid periods.
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Download the “Fast_Stochastic.mq4” indicator for Metatrader 4
