MTF Stochastic MT4 indicator that we are going to examine in this article consists of four stochastic best mt4 custom indicators MTF (multi time frame), situated in a single sub window. We will review a combination Н4-Н1-М30-М15, though you can use any number and on any timeframe.
Stochastic mt4 indicator combines both functions of a trend indicator and oscillator. An Н4 line (the black one) and an Н1 line (the red one) act as trend indicators on senior timeframes.
Opening of a long position on the basis of MT4 indicator signals occurs when Н4 and Н1 lines grow. The most advantageous moment is when both lines start growing from under the level “20”. Buy trades are also valid until reaching the oversold zone by these lines (above “80”). Entry is also possible when the Н4 line “lies” in the oversold zone, and the H1 line slightly deviates from a trend or “sags”.
Market buy entry is carried out when:
1. The above-mentioned conditions are met;
2. The lines М15 and/or M30 begin the movement to leave the oversold zone.
As you can see on the second picture, good signals of mt4 indicator appear when the Н1 line slightly deviates from the main trend (for example, not lower than 50), and the lines М15 and М30 start moving upwards together.
In you use the best forex trading indicator on M15, it would be better to place short positions, about 20 points. Longer positions appear only when a larger stochastic (for example, M30 or H1) has “sagged” against the trend (H4).
Forex technical indicator Williams’ Percent Range (%R) (Oscillator)
Williams’ Percent Range (%R) is a dynamic MT4 indicator (oscillator) that detects overbought or oversold conditions of assets. %R largely resembles Stochastic, but it uses an inverted scale, and Stochastic relies on inner smoothing. It is a standard best forex trading indicator of the MT44 trading terminal.
Working zones of %R mt4 indicator
The oversold zone of Williams’ Percent Range is between the values -80% and -100%. Accordingly, the overbought zone is between the values -0% and -20%. Values of this MT4 indicator have negative sign for building on an inverted scale. Minus doesn’t influence analysis at all.
The use of %R
As well as at use of other best mt4 custom indicators that signal about overbought or oversold condition of the market, it is reasonable to rely on Williams’ Percent Range data only after price reverse in the corresponding direction.
The Williams’ Percent Range mt4 indicator has a useful feature: it points to forthcoming price reversals in advance. As a rule, %R forms a peak and reverses downwards shortly before the price reaches the high and starts sliding down. In case of the reverse upwards everything happens in the same way: %R starts rising in advance.
%R = (HIGH(i-n)-CLOSE)/(HIGH(i-n)-LOW(i-n))*100,
- CLOSE — today’s close price;
- HIGH(i-n) — the highest maximum for the last n periods;
- LOW(i-n) — the lowest minimum for the last n periods.