The DMI Stochastic Extreme Signal indicator for Metatrader 5 generates highly accurate trading signals by integrating the DMI and Stochastic indicators.
The indicator appears in a separate chart window as a series of green and orange colored trading zones.
How to interpret this tool?
- The green zone is displayed when the indicator reaches the 90 threshold level, indicating a potentially buying opportunity.
- The orange zone appears when the indicator hits the 10 threshold level, suggesting a possible selling opportunity.
The indicator contains the following inputs and parameters: time frame (current), DMI period, Stochastic period, slowing period, smoothing method, level up, level down, turn on alerts, push notifications.
Trading tips:
Make yourself familiar with this technical indicator and test it first on a demo account for an extended period of time.
It is important to maintain realistic expectations when using this indicator.
Its performance can vary significantly based on different market conditions such as trending markets, sideways markets, and others.
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dmi_stochastic_extreme_1.1.mq5 Indicator (MT5)
Chart Example
The following chart shows how the DMI Stochastic Extreme Signal indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The DMI Stochastic Extreme Signal Indicator?
Find a simple trading example below:
Buy Signal
- A buy signal is given when the green colored DMI Stochastic trading zone appears in the chart.
- Open a long trade and place your stop loss slightly below the most recent support region.
- Exit method 1: close the buy trade for a risk to reward ratio of at least 1.5 or higher.
- Exit method 2: hold the trade and wait for a sell signal.
Sell Signal
- A sell signal is given when the orange colored DMI Stochastic trading zone appears in the chart.
- Open a short trade and place your stop loss slightly above the most recent resistance region.
- Exit method 1: close the sell trade for a risk to reward ratio of at least 1.5, or higher.
- Exit method 2: hold the trade and wait for a buy signal.
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dmi_stochastic_extreme_1.1.mq5 Indicator (MT5)
Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the dmi_stochastic_extreme_1.1.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration