MTF Stochastics - strength and weakness

MTF Stochastics indicator, which we will consider in this article, consists of 4 stochastics MTF (multi time frame)The number of the combinations of the two timeframes are in one subwindow. We will consider the combination H4-H1-M30-M15, although you can use any number and on any timeframe.

Stochastics combines the functions of a trend indicatorand oscillator. As an indicator of the trend on higher timeframes are lines H4 (in the figures black) and H1 (red line).

Opening long positions is made when the lines H4 and H1 are growing. And the most profitable moment is when they both begin to grow from under the level of "20". The buy transactions are also valid until the entry of these lines in the oversold zone - above "80" (see Fig. 1). Entries are allowed when the H4 line "lies" in the oversold area, and the H1 line slightly deviates from the trend, or "sags".

Fig. 1. Determination of the trend. H4 and H1 move out of oversold area
в зону перекупленности — допускаются только длинные позиции.

Fig. 2. The line H4 "lies" in the oversold area, the line H1 deviates from the trend,
giving an opportunity to enter the market after a deep pullback.

Entry into the market to buy is made when: 1) the conditions listed above are met; 2) the M15 and/or M30 line begins to exit the oversold zone.

As can be seen in Figure 2, the good signals The lines are given when the H1 line deviates slightly from the main trend (not below the 50 level, for example), and the M15 and M30 lines start moving up together.

Fig. 3. Example of a signal for a long position.

Fig. 4. Example of a signal for a short position.

If you use the indicator on M15, then it is preferable to set a short targets - about 20 points. Wider targets are set only when against the trend (4-hour) "sag" a larger stochastic, for example, M30 or H1.