If you’re a forex trader, you must have heard about Stochastics Oscillator. This is because it is one of the most used indicators by swing traders for defining the possible highs and lows of the market. Although, as a newbie trader you might often find it a bit complex to interpret the Stochastics signals in the right way. Stochastic Cross Alert Indicator interprets such signals in the simplest way possible so that everybody can apply and be benefited by the magic of the Stochastics indicator.
Stochastic Cross Alert Indicator is applicable to trade all kinds of forex currency pairs and suits great with all sorts of timeframe charts within the MT4 platform. Thus, from scalpers to long-term day traders, everybody can be benefited using this handy indicator.
Stochastic Cross Alert Indicator Overview
Once you’re done with the installation of the Indicator at your MT4 terminal, you’ll find your chart like the image below
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Stochastic Cross Alert Indicator Explanation
Stochastic Indicator does all the Stochastics analysis in the background and extracts the signals by plotting simple up/downward arrows around the price candles. It signals the oversold condition of the market by plotting the upward arrow below the price bar when the stochastics value drops below 20. For oversold signal, it plots a red downward arrow above the price bar when Stochastics value rises above 80. Once you get an arrow signal from the indicator, you should wait until the current price candle closes so that you can match the signal with the candlestick patterns.
Stochastic Cross: Buy Rules
- A green upward arrow is plotted below the price candle
- The current price bar closes as a bullish candle
- Buy triggers at the break of the respective bullish candle’s high
- Set stop loss below the current low of the market
- Exit long whenever a red arrow is plotted above the price bar
Stochastic Cross: Sell Rules
- A red downward arrow is plotted above the price candle
- The current price bar closes as a bearish candle
- Sell triggers at the break of the respective bearish candle’s low
- Set stop loss above the current high of the market
- Exit short whenever a green arrow is plotted below the price bar