The Engulfing Candle Stochastic Forex indicator for Metatrader 5 detects engulfing buy/sell candlesticks in overbought and oversold Stochastic zones.
The indicator gets displayed as a Stochastic oscillator along with the engulfing buy and sell signal arrows.
Essentially, this tool spots short-term trend continuation signals in both overbought and overbought Stochastic territory.
Please note that the Stochastic oscillator is oversold at the 20 level and overbought at the 80 level.
The indicator works for any time frame, trading instrument and is newbie friendly.
The indicator contains the following inputs and parameters: oversold, overbought, K period, D period, type of smoothing, calculation method, symbol, time frame.
Make yourself familiar with this technical indicator and test it first on a demo account.
It supports all time frames and Forex pairs.
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The following chart shows how the Engulfing Candle Stochastic indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Engulfing Candle Stochastic Indicator?
Find a simple trading example below:
- A buy signal is given when the blue engulfing arrow gets displayed on the chart.
- Open a buy order and place your stop loss below the most recent swing low area.
- Close the buy trade for a reward to risk ratio of at least 1.5, or for a fixed profit target of your preference.
- A sell signal is given when the red engulfing arrow gets displayed on the chart.
- Open a sell order and place your stop loss above the most recent swing high area.
- Close the sell trade for a reward to risk ratio of at least 1.5, or for a fixed profit target of your preference.
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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 EngulfingStochastic.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