Sunday, April 29, 2012

MT4 indicator (Color_Stochastic.mq4)

How to use Color Stochastic indicator

Color Stochastic indicator shows overbought and oversold levels.

Stochastic readings above 80 suggest market being overbought, Stoch line turns green;

while readings below 20 - market being oversold, Stoch line turns red.

Ability to see these areas at a glance helps to judge about trends and reversals.

While Stochastic stays above 80 (green line) - an uptrend is in progress.

At the same time a reversal momentum should be anticipated soon. In particular, traders should watch for developing reversal patterns such as:

- failure swing high,
- double top,
- head-and-shoulders pattern.

Forex MT4 indicator Color Stochastic Download indicator: Color_Stochastic.mq4




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