How does the Forex Stoch Histogram work?
Forex indicator Stoch Histogram draws the histogram bars alongside with a moving average as you can see in the picture, both identify current and past market trends. In this indicator you can see the signs of trend reversal before starting a trend, as first color change takes place.How to enter and exit trades by Forex indicator Stoch Histogram?
In this indicator, the green bars of the histogram indicate an uptrend and the red bars show a downtrend in the Forex market. To enter a trade with the Stoch Histogram, you should check the following items for any kind of trade including buy or sell.To open a buy trade with the Stoch Histogram: ⦁ Histogram lines should be green. ⦁ The moving average line should be inside the green lines. So if the bars were green but the moving average line was not inside the bars, in this case we can say that opening a buy trade can be associated with a higher risk and it is better to avoid that kind of trade.We always recommend you not to use any indicators as a sole strategy for any kind of trading. You should use it alongside with other indicators or strategies.