Stochastic Oscillator | MT4 Stochastic | Stochastics

What is MT4 Stochastic Oscillator?

Stochastic Oscillator (simply referred to as Stochastics) is an oscillator indicator, and because it is an oscillator, it consists of a scale of 100 points. It shows you when the market is oversold or overbought, helping you find good entry and exist points.

How can I add Stochastic Oscillator to my Forex trading platform?

Go to:

Insert > Indicators > Oscillators > Stochastic Oscillator

MT4 Stochastic

How can I trade with Stochastic Oscillator?

To buy with Stochastics

To buy with Stochastics you should be looking for these circumstances to occur:

  1. The market has to be in an uptrend, and having a pullback (short bearish movement).
  2. Stochastics crosses below 20.
  3. K line crosses above D line.
  4. A candlestick closing in bullish style.

In that case, your initial stop should be a few pips below the last low.

Check the example in this picture:

 Stochastic Oscillator

To sell with Stochastics:

To sell with stochastics, you need to wait for the following circumstances to occur:

  1. The market is in a downtrend and it takes a short pullback (a short bullish movement).
  2. Stochastics crosses above 80.
  3. The K line crosses below the D line.
  4. Wait for the candlestick to close in a confirmation bearish style.

You can place your stop at the latest high level.

Check the example in the following picture:

Stochastics

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