Stochastic oscillator is a very popular indicator among traders. Here you will not only find the explanation of what it is and how to use it, but you will also be able to download Stochastic Multi-Timeframe (MTF) indicator for MetaTrader 4 to help your trading.
Stochastic oscillator is a momentum indicator.
Traders have been using stochastic for over a half a century and even so, it is still very popular.
Being a momentum indicator, stochastic is useful to understand if a trend is exhausting.
Stochastic is the result of the comparison of the price over a specific period of time.
The value of the indicator fluctuates between 0 and 100.
Stochastic indicator's graph includes two lines:
The mathematical formula for the stochastic oscillator is:
%K = ((C - LX) / (HX - LX)) × 100
As mentioned earlier, the stochastic value is ranging between 0 and 100. Stochastic includes the main and the signal lines.
When studying this indicator, you usually consider:
While those are common behavior traits, there are also exceptions with this oscillator.
In fact, not always a line cross would mean that the price will change its direction.
Also, in case of a strong trend, stochastic can remain in an overbought or oversold area for an extended period of time.
MetaTrader includes stochastic oscillator as one of the default indicators. It is available in the Oscillators section.
Since there is no alert options, we created an enhanced version of the indicator so that you could receive notifications when the price is oversold or overbought and when there is a cross of the main and signal lines.
When you do technical analysis, it is sometimes easy to forget to check the bigger picture.
Often, we focus on a specific chart and timeframe and we don't consider what is happening on a larger scale.
This can also happen when we check stochastic indicator.
We might be checking the value on an M30 chart and it looks oversold. However, checking the indicator on an H4 chart tells us that the pair is perhaps in an overbought area.
Stochastic Multi-Timeframe indicator for MT4 was made to solve this issue specifically.
This multi-timeframe (MTF) indicator makes it easy to monitor stochastic oscillator across all the selected timeframes.
You can see the value of the main line and its recent trend for every timeframe in a small table on a single chart.
Stochastic Multi-Timeframe indicator for MT4 can show you whether stochastic is currently in an overbought or oversold area for all timeframes.
At the same time, the indicator can show you the trend of the main line — whether it is higher or lower than before.
Furthermore, you can also see if the main line crossed the signal line recently.
The indicator includes the following features:
You can download for free MT4 Stochastic Multi-Timeframe indicator with the link below and install it by following the provided instructions.
The installation is very easy to perform, so is the use.
Once you run the indicator, you can set Stochastic parameters, select timeframes, and configure alerts via its input parameters.
To install the MT4 Stochastic Multi-Timeframe indicator, please follow the instructions below:
For a more detailed instruction on how to perform the installation and a tutorial video please visit this page.
Even if stochastic oscillator is over 50 years old, it is still worth looking at from time to time. It is a momentum indicator that can help you in spotting overbought and oversold situations and act accordingly.
Stochastic Multi-Timeframe indicator for MT4 allows you to see the status of the oscillator across all timeframes. This way, you can have a better understanding of the overall market situation.
You can open a trading account with any of the MT4 Forex brokers to freely use the indicator for MetaTrader 4 presented here.
If you would like to see other multi-timeframe indicators, you can read our guide on MTF indicators.