This Download Consists of Two Indicators
When you purchase this item you get two indicators for a discounted price, the Fast Stochastic and the MACD Zero-Lag Histogram.
The idea behind the Stochastic indicator
The main idea behind Stochastic indicator according to its developer, George Lane, lies in the fact that rising price tends to close near its previous highs, and falling price tends to close near its previous lows.
Stochastic is a momentum oscillator, which consists of two lines: %K - fast line, and %D – slow line and it is plotted on the scale between 1 and 100.
"You are only purchasing a single indicator as shown below called Fast_Stochastic"
Trading with the Stochastic indicator
Stochastic lines cross — indicates the trend change.
Stochastic readings above up level — currency pair is overbought,
Stochastic staying above up level — uptrend is running strong.
Stochastic exiting up level downwards — expect a correction down or beginning of a downtrend.
Same for readings below down level — currency pair is oversold, staying below downtrend is running strong, exiting upwards above down — expect an upward correction or a beginning of an uptrend.
How to interpret the Stochastic indicator
There are also so-called "trigger levels" that are added to the Stochastic chart at up and down levels.
Those lines suggest when the market is oversold or overbought once Stochastic lines pass over them.
How to trade with Stochastic indicator
Stochastic lines crossovers that happen above up level and below down level are treated as strongest signals, compare to crossovers outside those levels.
Traders may choose the sensitivity of their Stochastics. The smaller the Stochastic parameters, the faster it will react to market changes, the more crossovers will be shown.
Like all indicators created from Starfield, all this description and tips are strong coded so you need just to read the message from the right side of the indicator to understand the market conditions. We strongly recommend using MACD in association with Dynamic_RSI, CCI and MACD for the best accurate market signal.
Sensitive Stochastic (for example 5, 3, 3) is useful for observing rapidly changing market trends. But because it is too choppy it should be traded in combination with other indicators to filter out Stochastic signals.
MACD Zero Lag Histogram Indicator
MACD is the simplest and very reliable indicators used by many Forex traders.
MACD (Moving Average Convergence/Divergence) has in its base Moving Averages.
The MACD is a popular momentum and trend-following indicator that is based on the information of moving averages and, thus, ideal to act as an additional momentum tool and momentum filter for your trading.
Our MACD_zerolag_Histogram indicator uses a formula for Moving Average that eliminates the usually lags of MA. And, like all indicators created from Starfield, all this description and tips are strong coded so you need just to read the message from the right side of the indicator to understand the market conditions.
We strongly recommend using MACD in association with Dynamic_RSI, CCI and Stochastic for the best accurate market signal.
There are 2 MACD signals:
1) The MACD Line cross 0
The MACD is thus its own moving average crossover system in just one line. A cross of 2 MAs shows a change in momentum and it can often foreshadow the creation of a new trend. So, whenever the MACD Line crosses 0, it shows that momentum is changing and potentially a new trend is just being created.
2) The Signal Line
When you see the two MACD indicator lines move away from each other, it means that momentum is increasing and the trend is getting stronger. When the two lines are coming closer to each other, it shows that price is losing strength.
We Offer a Fully Working Free Trial
We offer a 7-day free trial of this indicator, you will need to contact us and ask for the trial and we will send it to your email address.
Please do not forget to tell us the name of this product when you contact us.
How To Install The Indicator
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install onto the platform.
If you cannot find the help you need on the product support page then submit a support ticket.