Simple Trend Detector (STD) Forex Indicator
The Simple Trend Detector (STD) indicator for MetaTrader4 behaves like a combination of the Relative Strength Index (RSI) and DeMarker Indicator, but a lot more sensitive.
Both the Relative Strength Index (RSI) and DeMarker Indicator are momentum oscillators that can be used to determine “overbought” and “oversold” regions in the market. The RSI oscillates between “0” and “100,” the DeMarker Indicator oscillates between “0” and “1” and the Simple Trend Detector (STD) fluctuates between the same levels seen in the DeMarker Indicator.
The Simple Trend Detector (STD) indicator offers information about the strength of the currency pair along with an appropriate gauge on the symbol’s demand. The STD some on a separate window aligned below the chart and within its window lies a blue line that fluctuates between “0” and “1.” The STD indicator has its extremes marked with dotted horizontal lines at “0.3” and “0.7.”
When price drives the STD indicator above the “0.7” extreme level, it is said to be in an overbought condition and price is expected to come lower i.e. a bearish signal. If on the other hand, price drives the STD indicator below the “0.3” extreme level, price is said to be in an oversold condition i.e. a bullish signal.
It is not advisable to trade the STD as a lone indicator, this is largely due to false entries, as we can have price continue in its upward trend even after it is in the overbought region (above the 0.7 level). This could mean traders jumping out of trades too early.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (STDPeriod), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: momentum oscillator