The SSD With Histogram MT5 forex indicator gets shown on a separate window and it displays the slow stochastic line, a signal line that is plotted by the slow smoothing method, along with a histogram that depicts the difference between the slow line and the signal line.
The slow stochastic line is shown as the light sea green line within the indicator window, while the chocolate colored line represents the signal line.
The histogram is a combination of green to the upside and red to the downside.
The calculations that determines the SSD_With_Histogram MT5 custom indicator is as follow:
K = Stochastic D – 50.0
D = SMA(K, %D Period)
Histogram = K – D
The indicator performs the computation as needed and it’s therefore needless to bother ourselves about the different formula.
If the histograms are aligned above the zero level, price is said to be bullish.
Green histograms above the zero are an indication of a strong bullish trend, while red histograms that form above the zero represents pullbacks within the bullish trend.
If the histograms are aligned below the zero level, price is said to be bearish.
Red histograms below the zero are an indication of a strong bearish trend, while when green histograms pop up below the zero, it is indicative of a pullback within a broader bearish trend.
The stochastics and signal line crossover offers us a great deal of information as well.
If the chocolate colored signal line crosses the light sea green slow stochastic line bottom up when below the zero level, it is indicative of a strong bullish trend, but if it the chocolate colored signal line crosses the light sea green slow stochastic line top downward when above the zero level, price is said to in a strong bearish trend.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (%K period, %D period, Slowing, Method, Price field), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the SSD_With_Histogramn.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)