The Stochastic Oscillator was developed in the 1950s and, due to its versatile nature, remains one of the most popular technical indicators used in Forex and stock trading today. It was developed by George Lane, a famous technical analyst, based on the premise that prices tend to close near the high of the candlestick during upward price movements, and near the lower end of the candlestick during downward movements.
The stochastic oscillator measures the momentum of price movements. Momentum is the rate of acceleration in price movement. The idea behind the stochastic indicator is that the momentum of an instrument’s price will often change before the price movement of the instrument actually changes direction.
The Stochastic Oscillator ranges between 0 and 100. A reading of 0 means that the latest closing price is equal to the lowest price of the price range over the chosen time period. A reading of 100 means that the latest closing price is equal to the highest price recorded for the price range over the chosen time period.
What is the free Stochastic EA?
If you are a fan of the Stochastic indicator and don’t want to constantly be sifting through multiple charts and timeframes for Stochastic signals, then this free Stochastic EA can be a great solution.
It will analyse all of the charts that you attach it to in the MetaTrader 4 (MT4) platform for buy or sell signals which can save you plenty of time and allow you to simultaneously follow lots of currency pairs or other financial instruments.
How does the free Stochastic EA work?
When the Stochastic EA finds a valid trading signal according to its built-in algorithm, it will send you a signal alert via SMS, email or a platform pop-up. You can choose the alerts that you wish to receive from the Stochastic EA settings.
Not only can it send you alerts for manual trading, but you can set it to actually place trades on your behalf in case you are not around to do it yourself. It includes customisable settings and money management features such as stop loss, take profit, break even and a trailing stop.
Stochastic EA Trading Strategy
I have built this free Stochastic EA for MT4 (MQL4) so that you can use it to generate signals and automatically trade based on the Stochastic strategies for reversal trading and trend trading. You can choose between the strategies or use both if you load the expert advisor on separate charts. You can also combine them together so that both signals need to agree to confirm a buy or sell signal.
Stochastic Reversal Strategy
- Buy Signal: Stochastic main line is below 20
- Sell Signal: Stochastic main line is above 80
Stochastic Trend Strategy
- Buy Signal: Stochastic main line is above signal line
- Sell Signal: Stochastic main line is below signal line
Stochastic Reversal and Trend Strategy
- Buy Signal: Stochastic main line is above signal line and below 20
- Sell Signal: Stochastic main line is below signal line and above 80
Stochastic EA Features
- All of the Stochastic EA settings are customisable
- The Stochastic robot can send Stochastic signals and trade automatically
- Keep full control over your money management
- The Stochastic EA MQL4 is developed for the MT4 platform
- The Stochastic MT4 EA can be used on any MT4 forex broker
- The Stochastic EA is free to use without any restrictions at all
- Includes easy to understand setup instructions
Stochastic EA Settings
- Expert Name
- Pop Up Alerts
- Email Alerts
- SMS Alerts
- Days Filters
- Hours Filter
- Magic Number Buy
- Magic Number Sell
- Maximum Spread
- Maximum Slippage
- Open Orders Limit
- Use Risk
- Risk Percent
- Stop Loss
- Take Profit
- Close Opposite Signal
- Use Break Even
- Break Even Point
- Use Trailing Stop
- Trailing Gap
- Close Percent
- Minimum Lot Close
- Stochastic Extreme
- Stochastic Trend
Conclusion: Is this free Stochastic EA for me?
If you are looking to get automated Stochastic signals in MT4 then yes, this can do the job. It can send you buy or sell signal alerts and place trades without you needing to do anything. As with any automated or manual forex strategy, there is no guarantee at all on the results that you will get.
This Stochastic robot has not been optimized so it does not include set files. You will need to choose your own settings. However, you do have unlimited access so you can test it as much as you want on all of your favourite currency pairs and chart timeframes.
If you manage to come up with some interesting settings that show good historical performance, please feel free to share them with me.
You might also want to check out my other free forex EA’s that you can download:
- Free Bollinger Bands EA
- Free RSI EA
- Free CCI EA
- Free Moving Average EA
- Free Envelopes EA
- Free ADX EA
- Free Ichimoku EA
- Free Parabolic SAR EA
- Free MACD EA
- Free Price Action EA
If you are looking for a forex robot that combines multiple technical indicators along with price action analysis, please feel free to take a look at my free forex robot. Otherwise, you can download the free Stochastic EA.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.