Continuous Candles with Stochastic Filter Indicator - MetaTrader 4 Script | Forex Indicators Download - MT4/MT5 Resources

This indicator identifies consecutive high price candles and consecutive low price candles. The first candle must have an adjustable body (x) points long to satisfy the first condition, and the candle must also be below or equal to the 20 stochastic level for consecutive high candles, or above or equal to the 80 stochastic level for consecutive low candles. You can set your own random levels.

If the above conditions are met, the indicator will focus on candle 2. Candle 2 must also have an (x) pip length adjustable body to satisfy the condition, however, it does not depend on the stochastic level. If the conditions of candle 2 are met, the indicator will send an alert immediately after the close of candle 1 and place an arrow on the chart.

For the sake of clarity, let's divide trading styles into two types: trends or ranges . In trend trading, if the price rises, you enter the trade expecting that the price will continue to move in the same direction. With range trading, you anticipate a price reversal, so you trade in the opposite direction of the recent trend.

So, for example, if three large bullish bars print based on your point size specifications, and the Stochastic is overbought when the first bar prints, you expect the price to continue rising and therefore want an up arrow to print on the chart, or if trading in a range, you would want a down arrow to print at that time because it has been in overbought territory for a while and expect the price to go lower.

Attachment download

📎ccwsf.mq4 (15.58 KB)

Source: MQL5 #19130