The Stochastic MACD Forex indicator for Metatrader 5 works well for pinpointing both trade entry and trade exit levels.
The indicator is displayed in a separate chart window as an oscillator that uses the -10 and +10 threshold levels.
How to spot overbought and oversold levels with the Stochastic MACD indicator?
- The market is considered overbought when the oscillator reaches the +10 value.
- The market is considered oversold when the oscillator reaches the -10 value
For best performance, the Stochastic MACD indicator needs to be combined with a trend-following indicator or system.
The indicator contains the following inputs and parameters: stochastic period, fast period, slow period, signal period, price, overbought level, and oversold level.
First, familiarize yourself with this technical indicator and test it on a demo account.
It supports all time frames and Forex pairs.
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Stochastic MACD.mq5 Indicator (MT5)
Chart Example
The following chart shows what the Stochastic MACD Forex indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Stochastic MACD Forex Indicator?
Find a simple trading example below:
Buy Signal
- In a rising currency market, a buy signal is given when the Stochastic MACD oscillator goes back above -10 from below.
- Open a buy trade and set your stop loss below the previous swing low price.
- Exit the buy trade near prior key resistance or want for a sell signal.
Sell Signal
- In a declining currency market, a sell signal is given when the Stochastic MACD oscillator goes back below +10 from above.
- Open a sell trade and set your stop loss above the previous swing high price.
- Exit the sell trade near prior key support or want for a buy signal.
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Stochastic MACD.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 Stochastic MACD.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