The Dsl - stochastic Indicator For MT4
The Dsl - stochastic Indicator For MT4 is based on the well liked stochastics indicator that is also included in metatrader4. There is a common discussion about which signals are best when it comes to the stochastics indicator, some say the signal from the signal line are best and others prefer to use the levels of the indicator. This discussion will probably never be disbanded, since different people prefer different things. The Dsl - stochastic Indicator For MT4 however tries to devolve the discussion by combining these two signal types into one.
In this article you will learn how this is done and how the Dsl - stochastic Indicator For MT4 performs in comparison with the standard stochastics indicator. Afterwards quickly explain the settings of the indicator. At the end I will show you a few trade examples with the Dsl - stochastic Indicator For MT4 and tell you how it can be used best.
Comparing the Dsl - stochastic Indicator For MT4 with the standard stochastic indicator
In the above image you can see both the Dsl - stochastic Indicator For MT4 and the stochastics indicator. You can quickly notice, that the line of the Dsl - stochastic Indicator For MT4 behaves exactly like the blue line of the standard version. The Dsl version does however change its color between green and yellow, depending on its position. The line becomes green once the line is above the invisible signal line and above the 50 level at the same time and changes to yellow if the opposite happens.
The standard stochastics indicator displays the standard 20 and 80 level that many traders use while trading to spot overbought and oversold zones. Based on these zones, they will then place their buy or sell trades accordingly. Since these zones use fixed values, traders are less flexible, and their decisions are less based on the actual price movements. The Dsl - stochastic Indicator For MT4 solves this problem by using flexible levels.
With the Dsl - stochastic Indicator For MT4 you can use the change of color as the crossing of the signal line, while you have to look very closely to spot that crossing with the standard version. So, in summary the Dsl - stochastic Indicator For MT4 makes trading based on the stochastics a lot easier and more convenient.
Settings of the Dsl - stochastic Indicator For MT4
The settings of the Dsl - stochastic Indicator For MT4 are quiet easy and similar to the ones of the standard version. With the first three settings you can setup all the variables of the stochastics indicator. The default settings of the normal version are 14, 3, 3. While these values might provide the most stability, it can also be advisable to test some other settings and see if you like these better.
With the next three settings you can change which price should be used for high, low or close. It is probably best to stick to the default settings here.
How to trade with the Dsl - stochastic Indicator For MT4
In the above image, you can see how trading with the Dsl - stochastic Indicator For MT4 works on a live chart. I have not marked every single possible trade, because the chart would otherwise get very clustered and too confusing for you to understand. The entries are based on the change of color that the indicator is printing. We enter a long trade if the indicator first draws a yellow line and then changes its color back to gray. And vice versa we take short trades if we first see a green line and then switch to gray.
Doing this without any additional analysis is already very good and provides a good win-percentage as well as good results. We can however easily increase our profitability even more, by adding a bit of technical analysis before entering. We can for example only enter trades with the current trade and skip the counter trend trades. An additional feature that we can use with this indicator is divergence . This can give use a lot more confidence in our trades and thus make trading more enjoyable.