How to Add MT4 Stochastic Oscillator on MT4 Chart
Step 1: Open MetaTrader 4 Software Navigator Panel
Open MetaTrader 4 Navigator panel as shown on example below: Go to 'View' menu (click), then select the 'Navigator' panel (click), or From Standard Tool Bar click 'Navigator' button or press keyboard MetaTrader 4 short-cut keys 'Ctrl+N'
On MetaTrader 4 Navigator window, choose "Indicators", by DoubleClick
How Do You Use MT4 Stochastic Indicator in MT4?
How to Add Stochastic MT4 Indicator
Expand the menu by clicking the expand button marker (+) or double click the 'indicators' menu, after this the button will then appear as (-) & will now display a list of MT4 indicators as shown on example below - select the Stochastic Oscillator indicator from this list of MT4 indicators so that you can add the Stochastic Oscillator MT4 indicator on MetaTrader 4 chart.
How Do You Use MetaTrader 4 Stochastic Indicator on MT4?
How Install and Add Custom Stochastic Indicator on MT4?
If the MT4 indicator that you want to add on the MT4 charts is a custom MT4 indicator - for example if the Stochastic Oscillator indicator that you want to add is a custom MT4 indicator you will need to first add this custom Stochastic Oscillator MT4 indicator on MetaTrader 4 platform & then compile custom Stochastic Oscillator indicator so that the newly added Stochastic Oscillator MT4 custom indicator pops up on the list of custom indicators on MT4 software.
To learn how to add Stochastic Oscillator indicators on MT4 - how do you add Stochastic Oscillator indicator window to MT4 platform? - how do you add Stochastic Oscillator custom indicator on MetaTrader 4? - How to add a custom Stochastic Oscillator custom indicator in MT4.
How Do You Use Stochastic Oscillator MT4 Indicator?
Stochastic Analysis Buy and Sell Signals
Created by George C. Lane
The Stochastic Indicator is a momentum indicator - it shows the relation between the current closing price relative to the high & low range over a given number of n periods. The Oscillator uses a scale of 0-100 to plot its values.
How to Add MT4 Stochastic Oscillator on MT4 Chart
This Oscillator is based on the theory that in an uptrend market the price closes near the high of price range & in a downward trending market the price will close near the low of price range.
The Stochastic Lines are drawn as 2 lines - %K and %D.
- Fast line %K is the main
- Slow line %D is the signal
3 Types of Stochastics Forex Oscillators: Fast, Slow & Full Stochastics
There are Three types are: fast, slow & full Stochastic. The three indicators look at a given chart period for examples 14 day period, & measures how the price of today's close compares to the high and low range of time period that's being used to calculate the stochastic.
This oscillator works on the principle that:
- In an uptrend, price oftenly tends to close at the high of candlestick.
- In a downtrend, price tends to close at the low of candlestick.
This indicator shows the momentum of the trends, & identifies the times when a market is overbought or oversold.
How to Generate Buy & Sell Signals
The most common techniques used for analysis of Stochastic Oscillators to generate signals are cross overs signals, divergence signals and over bought oversold areas. The following are the techniques used for generating signals
FX Crossover Signals
Buy signal - % K line crosses above %D line (both lines heading upwards)
Sell signal - %K line crosses below the %D line (both lines heading downwards)
50-level Crossover:
Buy signal - when stochastics lines cross above 50 mark a buy signal gets generated.
Sell signal - when stochastic lines move below 50 a sell signal gets generated.
Divergence Trading
Stochastic is also used to look for divergences between this technical indicator & the price.
This is used to determine potential trend reversals.
Upwards trend reversal - identified by classic bearish divergence signal on the Stochastic.
Forex Trend Reversal Signal
Downwards trend reversal - identified by classic bullish divergence on the Stochastic.
Trend Reversal Signal
Overbought and Oversold Levels on Indicator
Stochastic indicator is mainly used to identify potential overbought levels & oversold levels on the price movements.
- Overbought Levels - Stochastic Oscillator indicator values greater than 70 level - A sell signal gets generated when the Stochastic Oscillator indicator rises to above 70% and then falls below this overbought level.
Overbought levels
- Oversold Levels - Stochastic indicator values less than 30 level - a buy signal gets generated when the Stochastic indicator goes below 30% and then rises above this oversold level.
Oversold levels
Trades are generated when the Stochastic indicator crosses these overbought & oversold levels. However, Stochastic indicator overbought & oversold levels are prone to forex whipsaws especially when market is trending upward or downward.
How Do I Use MetaTrader 4 Stochastic Indicator on MT4?
