#1 Slow Stochastic + BBands Stop MT4 custom indicator

Trading setup

Currency pair: any
Time frame: any
Indicators: Slow Stochastic (5 ,3, 3)
BBands_Stop (also known as TopTrend indicator) default settings (20, 2)

BBands_Stop indicator can be your helping hand in confirming a trend, identifying trend change and setting stops.
Its appearance is pretty much self explanatory.

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Thank you, Jon

200SMA is used to judge about the major trend while 50 SMA for a smaller, current trend.

The confirmation rule works as follows:
Ideal uptrend = 50SMA is above 200SMA.
Ideal downtrend = 50SMA below 200SMA.

Price trading above both moving averages in an ideal Uptrend - your green ticket to plan Long trades;
while price trading below both moving averages in an ideal Downtrend - your green ticket to plan Short trades.

Everything that's not matching the ideal scenario with price and MA's positions should be treated with additional awareness, or can be avoided in total.


Hi Edward.. Nice work! Thanks, you are really Great!!!!

Hi Rob/Edward

I found that the BBands is really GOOD!
Can you please explain on the previous post 'use 50sma and 200sma for confirmation'? how does it work?

Beside Stoch (5,3,3), can you please also recommend any other Indicator or Strategy which can use with BBands?

Thanks & Regards

This is a great little strategy.

I am trading it on 15 minute charts. I look for BBand Stop confirmation from AT LEAST 2 of the next 3 higher timeframes [30 min, 1hr, 4hr].

If the longer timeframes confirm the direction, I take the trade on the stochastic signal.

I also use 50sma and 200sma for confirmation, and Andrews' Pitchfork for targets.

Working very nicely!!


Also looking at this on 15 minute charts with confirmation from the 1 hour BBand Stop indicator.


Hi all,

Been trying this as a little scalping strategy on 5 minute charts, WITH TREND DIRECTION CONFIRMATION from the 15 minute charts.

So, I only enter long on the 5 minute chart if the BBand Stop is long on the 15 minute chart as well. Opposite for shorts [obviously!].

Exit when Stoch goes into overbought if long and oversold if short.

Seems to be working well so far, just for little scalps with tight stops.

Thanks for the system!!


Sure it exists, try this one for example:


Hi Im not sure where to ask this so I guess I will ask it here. This site is great by the way have almost gone through the whole thing and am loving it!

Is there a Meta trader EA or indicator to plot Pivot points with 3 levels of resistance and support? If so where can I get it?

Thanks from,
South Africa

Welcome, Qiren Hu!

The combination of two TFs would certainly give you an advantage.
Happy trading!


Hi, Edward

Just came to your thread. A good Job you have done.

I usually traded with naked charts of combined time frames(TF), but constantly moving two horizontal lines(also Red and Blue) as S/R. This TOPTREND indicator relieves me, making the charts clearer.

With this system, I believe a combination of 2 different TF charts will work better, i.e.,
Operation/Direction Combination:1m/5m, 5m/15m, 15m/1H, 1H/4H, 4H/1D

Thanks again

Qiren Hu, China

Hi Dan,

Welcome to Forex world!
Right away I should say that as a programmer, you've got a great advantage over other traders, because you can code and put to test any strategy you want.

Your theory about commonly used indicators is quite interesting. I haven't thought of anything like this before. In fact, I believe in opposite: the market is so large that it is very difficult to imagine that all traders start to use the same indicator (...and there are tens of thousands of indicators nowadays). Besides all, individual investors, unless they really start to act alike and use the same method altogether, don't have any considerable influence in the market where large banks and investment companies operate.

On the other hand, as soon as some new trading model/method becomes so popular that it catches attention of majority of investors, (for example, a new trading pattern), a new wave of trading is expected to appear - a counter trading method, which foresees that new pattern and trades against it in order to capitalize on those who would need to back off. A balance in the market reappears.

Either way, backtesting and forward testing is an exiting part of Forex trading. I'd love to learn MT4 programming one day too.

Happy learning, coding and winning!


Hello Edward,

First of all, I would like to thank you for the great guides and the awsome work that you're doing overall with this site.

I havent (yet) traded in my life but its been a long term goal for me for a while now...
I have recently discovered the FOREX market and started investing LOTS of time in studying it. Its quite fascinating for me.

Now, to the point:
This indicator + strategy, as anyother, could be easily put to test with an Metatrader EA. I'm a programmer and I'll try to do that in the near future to check its consistency...

Maybe its a stupid question from a noob but I wonder, howcome ppl havent thought about checking an EA's consistency in time and adapt the orders accordingly ?

I mean, for example:
One might take an indicator's signals (doesnt matter which, but momentum/leading indicators are more suitable), and based on the assumption that traders use or DONT use that indicator we could try and predict its future success.

If traders are overusing an indicator, then that indicator is going to start giving false signals.
And, contrary, if traders DO NOT use an indicator then its signals will become more and more accurate.

So, we can take an indicator, test for its previous rate of success (using maybe an weighted EMA to decently take into account the nearest successes, while not filtering out all previous history) and if the indicator was successfull in the past over a fixed threshold we can statistically decide that ppl ARE using that indicator so its more prone to errors in the future. I suppose the reverse is true also...

Can you tell me your opinion on this ? Has anyone tried anything simillar in the past ??

Thank you very much,

Hi trader,
That is exactly what pros like to do — they trade against beginners because pros know where beginners will enter. Then when beginners are shaken out of a trade suffering losses, pros enter again.

Indicators like Parabolic SAR, ADX and moving averages can only suggest a trend, but should be avoided as primary signaling indicators when trading small time frames like 5 min, because those indicators lag.

Stochastic and RSI, however, are signaling of a momentum — a here and now situation — therefore those indicators should be used to identify the best moment to enter and exit.

If you'd like to enter with pros, you'd need to follow a trend and the key is to wait patiently for a momentum to signal you about good entry opportunity. Sometimes waiting is truly boring.

How do I draw Fibs?
I think the biggest problem for traders is to identify which tops and bottoms to connect when drawing Fibs. I use simple tool called Fractals. The Fractals indicator comes with MT4 platform and can be found by going to Insert -> Indicators -> Bill Williams -> Fractals.

I simply connect two most recent tops and bottoms identified by the Fractals indicator. I use Fibonacci retracement tool to pick entry points.
Here is a method on entering with Fibonacci I published:


hi edward,
im an avid follower of ur site as well as trading ideas and strategies however im somewhat dissapointed that my losses have significantly drawn down my account. How do u plot fibb.expansion and fibb.retracement tools on mt4 platform since it seems that each trade i place everyone is exiting and when i exit is when everyone returns?? I use parabolic sar. stochastic oscillator, rsi,and adx as well as 7,14,21 sma's on the 5min charts. please foward ur comments to [email protected] or post them on ur site.
trader, Kenya Africa.

Regular BB (Bollinger Bands) are different.



Is this strategy good with regular BB Indicator and not the MT4 custom BB Stops Indicator?



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