Double Smoothed Stochastic Indicator MT5
Platform: MT5 Type: Oscillator Last update: June 19, 2025The Double Smoothed Stochastic Indicator for MT5 displays long-term stochastic line with highlighted extreme areas using colorful fillings.
This allows traders to see the market with less noise and let them prepare for potential reversal trades.
Example chart:
How to use the double smoothed stochastic indicator for mt5?
Once the indicator is activated, it shows a continuous wave-like curve that moves between values of 0 and 100. This curve rises and falls gradually, creating a clean arc that highlights shifts in market momentum.
When the stochastic lines approaches the top (above 80), it signals overbought conditions and creates green area, suggesting a potential downward reversal. When it approaches the bottom (below 20) and creates orange area, it signals oversold conditions, implying a possible upward reversal.
Be careful during periods of strong trends – the readings can achieve extreme states for extended amout of time. Due to this, it’s a good idea to combine this indicator with other technical analysis tools to confirm signals and avoid false breakouts.
Take a look at the USD/CAD H1 chart. You can see how the double smoothed stochastic indicator outlined the overbough and oversold areas.
With proper price action analysis (or another form of confirmation), each reversal could have been a profitable trade. Traders simply need an additional entry trigger.
Indicator settings
In total, there are 8 customizable inputs in the settings tab.
- Stochastic period – number used to calculate the stochastic line (default: 55)
- Smoothing period – value for the first smoothing layer (default: 15)
- Smoothing period – value for the second smoothing layer (default: 7)
- Price to use for high – type of price source (default: high)
- Price to use for low – type of price source (default: low)
- Price to use for close – type of price source (default: close)
- Overbought level – threshold level for overbought zones (default: 80)
- Oversold level – threshold level for oversold zones (default: 20)
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