True Stochastic Indicator - finds all hidden support/resistance levels
True Stochastic Indicator is another interpretation of the good old stochastic with more advanced functionality and a new look at its use in trading. You have no idea how many indicators and expert advisors have been created based on stochastic. And today, we see before us another version of this indicator in a very successful performance.
Characteristics of the True Stochastic Indicator
- Platform: Metatrader4
- Currency pairs: Any currency pairs, recommended major
- Trading Time: Any trading sessions
- Time Frame: Any, recommended H1 and H4
- Recommended broker: Roboforex, IC Markets, FTMO
The MT4 True Stochastic Indicator can be used on the chart of any trading asset, but the priority, of course, is the major currency pairs, since they have the highest volatility. The time frame can also be any, but it is still better to give preference to higher time frames, such as H1 and H4.
The standard stochastic from the MT4 indicator set shows overbought / oversold levels, based on which we decide to open a sell or buy position for us. This is very important in reversal strategies. In the case of the True Stochastic Indicator, nothing new. But the author of the indicator suggests that we consider levels 1-10 and 90-100 for trading with an eye to the history, when the price approached these levels earlier.
Thus, we will open a Buy order when:
- The oscillator will reach levels 1-10 and
- A yellow circle will appear with a green dotted vertical line:
And we will open a Sell order when:
- The oscillator will reach levels 90-100 and
- A yellow circle will appear with a red dotted vertical line:
Set Stop Loss 10-20 pips above/below the price pivot point.
Take Profit = Stop Loss*3 (also, it can be support/resistance levels, round numbers, etc.)
The indicator has an information panel and I wrote more about the values of the columns in this dashboard of the indicator HERE.
You can see some more useful points in this video.
Of course, we all know that the stochastic has a significant drawback - protracted unidirectional trends without correction. And of course, TFA True Stochastic is also not without this drawback. For this, the author recommends entering the market only on the sixth touch of the upper / lower levels by the oscillator. This, to some extent, can save you from a protracted trend (but not always).
And of course, don't use this indicator alone. Apply additional filters:
- Support and Resistance levels
- Fibonacci levels
- Price Action and other
In the archive TFA_True_Stochastic.rar (201.6 Kb):
- TFA True Stochastic.ex4
- True Stochastic Oscillator Strategy.tpl
Free Download MT4 True Stochastic Indicator