The Stochastic of Filtered Price Metatrader 5 forex indicator is a technical tool that is built on its parent indicator i.e. the stochastic indicator, and relies on its design model for buy/sell signal direction.
Basically, the Stochastic of Filtered Price indicator tries to predict price turning points by associating the closing price of a currency pair to its price range.
Use this indicator together with a trend following forex indicator, such as a 100 period simple moving average or 100 period exponential moving average.
Trade in the overall trend direction.
Overall trend upwards? Only trade the buy signals from this indicator and ignore the sell signals.
Overall trend downwards? Only trade the sell signals from this indicator and ignore the buy signals.
The EUR/USD M30 chart below displays the Stochastic of Filtered Price Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the line of the Stochastic of Filtered Price Metatrader 5 forex indicator turns medium sea green.
Sell Signal: Go short when the line of the Stochastic of Filtered Price Metatrader 5 forex indicator turns orange red.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the Stochastic of Filtered Price indicator line turns orange red.
Exit sell trade: Close all sell orders if while a bearish trend is running, the Stochastic of Filtered Price indicator line turns medium sea green.
Tips: Setting the filter on the Stochastic of Filtered Price indicator to 0 (which is the default value) yields the stochastic main line, while other settings can also be tested (but cannot reproduce the regular stochastic oscillator) to attain better trading results.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable [Stochastic period, Stochastic slowing, Filter period (0 for same as stochastic period), Filter size, Price], 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 Stochastic of filtered price.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)