MTF Stochastic

Trading with MTF Stochastic

Before trading, you need to download this trading robot and install it to your trading platform. It is better to use MetaTrader4, which is popular among many traders or its new version, MetaTrader5. Download the new version of the indicator MTF Stochastic free of charge on the website MTDownloads now.

After downloading and installing, you need to configure this instrument. It has many parameters, which can’t be understandable for all traders. If the color of the lines, for example, can be adjusted even by a novice trader, the other parameters are set according to the selected financial instrument, timeframe, and trading strategy. For customization, you need to have a basic knowledge of technical analysis, or you should consult the professional traders before starting to trade. Despite this, complex robot settings worth its excellent results.

Parameters:

• The first (General) and the last (Display) tabs remain unchanged;
• The Second tab (Input parameters):
• Show_StochLabels - false;
• TimeFrame - 1;
• Show_Stoch_1 - true;
• K_period - 200;
• D_period1 - 3;
• S_period1 - 3;
• TimeFrame2 - 15;
• Show_Stoch_2 - true;
• K_period2 - 100;
• D_period2 - 3;
• S_period2 - 3;
• TimeFrame3 - 5;
• Show_Stoch_3 - true;
• K_period3 - 100;
• D_period3 - 3;
• S_period3 - 3;
• Show_Stoch_4 - false;
• Third tab (Colors) - choose the convenient colors and line shapes;
• Fourth tab (Levels) - set the price levels: 20, 50, 80;

After the configuration, you can proceed directly to trading. For a comfortable trading on a real account, test the MTF stochastic on a demo account.

To begin with, here are some basic tips for using the MTF Stochastic tool in Forex trading:

• If the blue/green line (also known as the heavy line) is above the level 50, and the red line (also known as the light line) crosses the level 20 from the bottom to the top - you need to buy the asset;
• If the blue/green line (also known as the heavy line) is below the level 50, and the red line (also known as the light one) crosses the level 80 from the top to the bottom - you need to sell the asset;

Following each of the tips, it is better to set the Stop Loss with about 20 points, and the Take Profit - with about 50 points. If you want to be risky, you can increase the number of points, when setting the Take Profit. However, it is better not to take risks and get a stable profit.

For trading with the help of this indicator, it is better to use the short time frames (optimally use M15). With them, the indicator gives more accurate signals.

Pros and cons of using MTF Stochastic

Like any tool of technical analysis, Multi Time Frame Stochastic has both advantages and disadvantages.

Let's start with the advantages, as there are more of them in this indicator:

• It is one of the robots, which have no redraws of the chart;
• It doesn’t give a signal at this very moment, but a future entry point to the market. It gives us an opportunity to analyze the situation from different sides, before entering the market;
• Unlike with the standard Stochastic, you can set several different time frames at the same time (traders usually set 4 of them);
• It is suitable for trading absolutely by any currency pair, but you need to remember to reset the parameters for each pair separately
• Profitable signals. There are practically no incorrect entry points to the market;

Despite the advantages, this robot has some insignificant disadvantages:

• The signals are relatively rare, although their probability is high. If you are trading by several currency pairs at the same time, you can work around this disadvantage and get quite often the exact entry signals;
• It is better not to use this indicator separately, but to combine it with other instruments, which will filter out all the wrong signals. It can be applied to almost any robot;

To make a long story short, the indicator has more pros than cons. Moreover, its disadvantages can be eliminated due to a competently chosen trading strategy.

All in all, each trader, who have enough knowledge of technical analysis can use the MTF stochastic indicator in his trading strategy, combining it with other tools of technical analysis. Download Multi Time Frame Stochastic for free on the website MTDownloads, and you will feel all its advantages just now.