Stochastic Floating Overbought/Oversold Levels Metatrader 5 Forex Indicator
A built in stochastic is the core of the Stochastic Floating Overbought/Oversold Levels Metatrader 5 forex indicator.
This special version allows the use of only two price combinations.
All prices are already included and this version further extends the indicator by adding “floating level.”
The Stochastic forex indicator does not adopt fixed levels as a condition for overbought and oversold market conditions, instead it adopts “floating levels” which are self-adjusting to the changes of the stochastic indicator.
In addition, the stochastic becomes adaptive, meaning we have an adaptive extended stochastic.
Don’t use this indicator in isolation, instead, combine with a trend following forex indicator or price action techniques.
The AUD/USD H1 chart below displays the Stochastic Floating Overbought/Oversold Levels Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the dual colored line of the Stochastic Floating Overbought/Oversold Levels Metatrader 5 forex indicator turns medium sea green.
Sell Signal: Go short when the dual colored line of the Stochastic Floating Overbought/Oversold Levels Metatrader 5 forex indicator turns orange red.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the dual colored line of the MT5 indicator reverts to orange red.
Exit sell trade: Close all sell orders if while a bearish trend is running, the dual colored line of the MT5 indicator changes to medium sea green.
Tips: We were able to stimulate a kind of “zero line” crosses for the Stochastic Floating Overbought/Oversold Levels indicator without necessarily having a real zero line by setting the upper and lower level within the inputs parameter to 50%.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Stochastic period, Stochastic slowing, Stochastic signal period, Stochastic signal method, Price, Floating levels period, Floating levels up %=50, Floating levels down %=50), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend | overbought/oversold
Copy and paste the Stochastic extended (fl).ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)