StdDev MTF Indicator

StdDev MTF Indicator

The StdDev MTF plots histogram bars to identify the direction of the trend.

The StdDev MTF indicator appears in the data window. It works the same as any oscillator with overbought and oversold conditions.

The indicator plots a single line without limits or scale to trigger the trade signals. You can use the indicator at any timeframe. However, the higher timeframes tend to be more accurate.

The indicator is based on a famous statistical method called standard deviation.

How to use the StdDev MTF for MT4?

The above GBPUSD H1 chart shows the BUY/SELL signals of the indicator.

The indicator measures the volatility of an instrument relative to the simple moving average. The indicator value oscillates around the zero value. Greater the distance from zero, the greater the volatility.

You can use StdDev MTF in many ways. A common way is to interpret the directional bias of the market. Like, if the indicator value is above zero, the trend is bullish. Similarly, the trend is bearish if the value is below zero.

You may use the overbought and oversold conditions and candlestick patterns to trade the reversals.

When the StdDev MTF line hits the bottom, wait for the line to turn upwards. Then wait for a bullish candle to close to enter the long position.

Similarly, when the indicator`s line hits the top, wait for it to turn south and then enter short on a bearish candle close.

Conclusion
The StdDev MTF for MT4 has different utilities. You can use it as a trend filter or find reversals or breakouts. The success probability depends on many factors. Hence, backtesting is important.