Stochastic Cross Alert MT4 Indicator
ThisStochastic Cross Alert MT4 Indicatorgives automatic alerts using signals from the classic Stochastic indicator. It draws buy and sell arrows directly on the price chart.
Description
The Stochastic Cross Alert MT4 Indicator is a super simple tool that allows you to trade forex using the signals provided by the classic Stochastic oscillator.
When you add the Stochastic Cross Alert MT4 Indicator to your chart in the Metatrader 4 platform, you will see arrows on the price chart and two lines in the zone below the chart.
The arrows correspond to bullish and bearish signals, which give Stochastic crosses.
What is a Stochastic cross?
As you know, the technical Stochastic Oscillator consists of two lines: the main line and the moving average. In the MT4 chart above, the main line is blue, the moving average is red.
When the 2 lines cross – it gives a classic signal:
- The main line crosses the moving average from bottom to top → a bullish signal. You should consider entering a long position, or closing (reducing) an existing short position.
- The main line crosses the moving average from top to bottom → bearish signal. Consider opening a short position, or closing (reducing) an existing long position.
How do I add alerts to Metatrader indicators?
Not all MT4 indicators can provide alerts. If the programmer who created the indicator hasn’t added the appropriate code to the indicator, you will not be able to set alerts in the indicator settings.
Fortunately, The Stochastic Cross Alert MT4 Indicator for MT4 has an ability to produce alerts. That’s actually its main purpose.
Moreover, it has the ability to alert on the occurrence of three types of signals:
- Classic (crossover of two lines).
- When the main Stochastic line enters the overbought/oversold zone.
- When the main Stochastic line leaves the overbought/oversold zone.
How to configure the alerts – will be discussed below.
For now, let’s talk about forex trading with Stochastic.
Stochastic Cross Alert MT4 Sell Signals
Stochastic is a super sensitive technical indicator. It gives signals very often. Trading on these signals can be disappointing, because most of the signals will be false, and the amount of commission paid to the forex broker will quickly grow.
However, Stochastic can be used as a local trigger for entering a trade on the global trend.
For example, if the global trend is defined by a breakdown of support and resistance lines, then the strategy for entering a short position can consist of 2 conditions:
- If price breaks down an important support line (indicating a bearish trend).
- If the Stochastic lines then cross, giving a sell signal.
An example of such a trade (from the forex market GBPUSD, M30) is shown below.
When the price breaks through the support level of 1.407 – wait for the Stochastic signal to enter into a short position. To make the waiting not boring, set up The Stochastic Cross Alert MT4 Indicator.
Place a protective order above the recent high. Close the position on a counter signal. Or use your own position management rules.
Stochastic Cross Alert MT4 Buy Signal
The signal to buy comes when:
- The price breaks through the resistance level upwards (sign of a bullish trend).
- The Stochastic Cross Alert MT4 Indicator then gives a buy signal (green arrow).
The example above (forex market EURUSD, M5 chart) shows a buy signal that meets the conditions described.
So you open a long position on a test of the breakout level.
To avoid being caught with a too tight stop-loss on such a “noisy” timeframe as M5, consider setting a protective order using the Stochastic indicator. Close the long position, when the main line of the oscillator will set a new low.
As an alternative option for closing a position, use a trailing-stop.
Conclusion
The Stochastic Cross Alert MT4 Indicator helps you not to miss the buy and sell signals that the classic Stochastic indicator provides.
Advantages of the Stochastic Cross Alert MT4Indicator:
- You get an alert automatically as soon as a buy or sell signal appears in MT4. This saves time and effort.
- Alerts can come to your phone and/or email.
- You can set up 3 types of Stochastic alerts.
- Non-repaint.
- It’s free!
- Simple settings.
- It is applicable for intraday trading as well as for opening investment positions on daily/weekly/monthly charts.
- It is applicable to any markets: forex, stocks and others.
Disadvantages of the indicator:
- Stochastic gives too many false signals, so use it in combination with other methods of making trading decisions in the forex market.
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