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Stretch indicator for MT4

May 03, 2018
Stretch indicator for MT4

You can now download the Kiss Forex Trading Strategy for free on AtoZ Markets indicators gallery. Stretch indicator uses the absolute difference value of 10 SMA between open and either the high or low, whichever difference is smaller. The indicator represents the minimum average price deviation from the open price and is used to calculate breakout thresholds for a trading session.

How to trade with Stretch indicator?

According to the ORB range breakout strategy, a trader places a buy stop order just above the open price plus the Stretch value and a sell stop just below the open price minus the Stretch value. The first order triggered opens a position and the other stop order becomes the stop loss level.

In general, the sooner the entry stop order is hit the more likely the entry will be profitable. In contrary, if the stop order is not filled early, the risk increases and it becomes prudent to reduce the entry size. Lastly, orders filled towards the end of the day carry the most risk and therefore should be avoided. This also includes times when the market is extremely volatile ahead of news releases.

Stretch indicator

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Trading tip

In order to increase profitability, it would be advisable to use a trend indicator such as Forex Freedom Bar indicator, which is based on CCI displayed over four time-frames, or a simple 50 moving average. With either trend indicator pointing the market’s direction, instead of placing two stop orders based on the ORB trading strategy, only one would be used to decrease the chance of market noise triggering a counter-trend order.

How to download and install an indicator?

In order to install the indicator on your MT4 platform, you need to follow these steps:

  1. Click on “Download Indicator” button located at the bottom.
  2. Save the file to your computer.
  3. Extract and move the files into MT4>Indicator folder of the MetaTrader4 software file directory.
  4. Restart your Metatrader platform.
  5. Navigate to “Indicators.”
  6. And select “Stretch indicator” template to apply it on the chart.

Note: Stretch indicator is developed by Pointzero-trading and was sent by an AtoZ Markets follower from France, John. AtoZ Markets does not carry any copyrights over this trading tool. 

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

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