Step Stochastic Indicator for MT5

 

The Step Stochastic Indicator For MT5 is an indicator which was brilliantly developed on the foundation of the Stochastic Oscillator - the Stochastic Oscillator indicator is a highly effective indicator when it comes to helping the trader to correctly identify oversold and overbought regions within the market and therefore these regions - once properly identified - form a basis for the trader to have sound directives for executing trend reversal trades however as times have gone by many technical traders and developers have programmed indicators known as step-based indicators and this is one interesting way of computing oscillations. Because what the trader sees is that the oscillations are formulated by means of upward and downward steps and these steps will (in this case) have different envelopes and these envelopes will indicate to the trader what market they are currently trading in so when there are blue envelopes or blue clouds then it is indicative of a bullish trend and when there are pink clouds or pink envelopes then the traders will easily deduce that the market is in a bearish trend however most step-based oscillator indicators create deformed plots because the minimum and maximum Average True Range values are inherited from only the previous bar and therefore it does not give a comprehensive view of the historical data so to solve this - this version of the indicator looks at the Average True Range minimum and maximum levels based on a wide horizontal range of past bars therefore this results in the Stochastic Oscillator formulating proper and more relevant upward and downward steps.