Swami Stochastic Indicator

Swami Stochastic Indicator

Swami Stochastic Indicator For MT4 provides overbought and oversold forex trading signals with a good risk-reward ratio using the stochastic indicator.

The Swami Stochastic indicator for MT4 provides oversold and overbought forex trading signals. Additionally, it provides a heat map which clearly distinguishes the bullish and bearish market condition. So, technical forex traders can easily identify the market trend condition and best entry points.

The indicator works well in all chart time frames. Moreover, it is effective for new and advanced forex traders. Though, the indicator works well in most market conditions, the reversal trading signals may not be effective during a strong trend.

Swami Stochastic Indicator For MT4 Trading Signals

The indicator plots an oscillator with a white stochastic line with 80 and 20 levels in a separate indicator window. Additionally, it plots a heat map with lime green for a bullish market and pink for a bearish one.

The main difference of this indicator from the regular version of stochastic indicator is the heat map. It is very useful in technical analysis. It helps traders to differentiate the bullish and bearish conditions at a glance. Moreover, the indicator uses multiple stochastic periods to identify the overbought and oversold conditions. The trading strategy is to enter the markets once they exit the overbought and oversold areas.

Traders can enter a buy trade if the indicator values go below 20 and reverses above 20 again. A stop loss should be placed below the previous swing low. In fact, traders should hold positions and exit if indicator values enter above 80 for a good risk reward ratio. A similar trading strategy can be followed with a sell trade if indicator values move above 80 and reverses.

Conclusion
In summary, the Swami Stochastic indicator for MT4 is an overbought and oversold indicator with a heat map.