The Stochastic Overlay Forex indicator for Metatrader 5 transforms the classic Stochastic oscillator into a powerful candlestick based buy & sell signals indicator.
The indicator offers 4 different methods for generating the actual trading signals on the chart (choose your favorite method from the inputs section).
The Stochastic overlay indicator appears as green/light-brown/red colored Stochastic candles on the main chart screen.
How to spot buy & sell signals with the Stochastic Overlay indicator?
- A green colored candle is a buy signal.
- A red colored candle is a sell signal.
- A light-brown candle is neutral.
For scalpers and day traders, the Stochastic Overlay Forex indicator produces the best results during the London and New York trading sessions.
The indicator includes the following inputs and parameters: data Stochastic compare mode, Stochastic %K period, Stochastic %D period, slowing, price filed, method, overbought level, oversold level.
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 Stochastic Overlay indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Stochastic Overlay Forex Indicator?
Find a simple trading example below:
- The first green colored Stochastic overlay candle is a buy signal.
- Initiate a buy transaction and place your stop loss below the most recent support zone.
- Close the buy trade for a fixed profit target of your preference, or wait for a sell signal.
- The first red colored Stochastic overlay candle is your sell entry.
- Initiate a sell transaction and place your stop loss above the most recent resistance zone.
- Close the sell trade for a fixed profit target of your preference, or wait for a buy signal.
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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 Stochastics_Overlay.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