The Stochastic Shade Signals Metatrader 4 forex indicator is an histogram based Stochastic indicator with easy to read buy and sell trading signals.
The indicator fluctuates between 0 and 100 readings in a separate window below the main activity chart and draws green and red shades.
Green shades indicate the trend is bullish and currency traders look for buy trade opportunities in the trend.
Red shades indicate the trend is bearish and currency traders look for sell trade opportunities in the trend.
In order to increase profitability, use this indicator together with a trend following indicator and only take signals from the Stochastic Shade Signals indicator in the direction of the prevailing trend as indicated by the trend following indicator.
Example of trend following indicators include moving averages, exponential moving averages, ADMI,…
Overall trend up? Only trade green shade signals near the 20 level (oversold & bullish).
Overall trend down? Only trade red shade signals near the 80 level (overbought & bearish).
The EUR/USD M30 chart below displays the Stochastic Shade Signals forex indicator in action.
Basic Trading Signals
Signals from the Stochastic Shade Signals forex MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Open buy position when the indicator readings are near the 20 level and the shade is green colored.
Sell Signal: Open sell position when the indicator reading are near the 80 level and the shade is red colored .
Trade Exit: Close the open trade when an opposite signal occurs, or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (KPeriod, DPeriod, Slowing) 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 stochastic-with-shade.mq4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)