Stochastic Trend Signal with MTF Filter

Multi-Timeframe Stochastic Trend Filter – Real Signals with Confirmation Candles

This script is a multi-timeframe Stochastic trend filter designed to help traders identify reliable BUY/SELL signals based on both momentum and higher-timeframe trend context.

It combines three key components:

Entry Signal Logic:

Entry is based on the Stochastic Oscillator (%K, 14,3), where overbought/oversold conditions are detected in the current chart's timeframe.

A green (bullish) candle following a red candle with %K below 20 can trigger a BUY signal.

A red (bearish) candle following a green candle with %K above 80 can trigger a SELL signal.

Trend Confirmation – Daily Filter:

The script uses Stochastic on the 1D (Daily) timeframe to determine whether short-term momentum aligns with a broader daily trend.

BUY signals are only allowed if the Daily %K is above 50.

SELL signals are only allowed if the Daily %K is below 50.

Long-Term Trend Filter – Weekly Stochastic:

A second filter uses Weekly %K:

BUY signals are suppressed if the Weekly trend is bearish (Weekly %K < 50) while Daily %K is bullish (> 50).

SELL signals are suppressed if the Weekly trend is bullish (Weekly %K > 50) while Daily %K is bearish (< 50).

🖼️ The chart background changes color to visually assist users:

Green background: bullish alignment on Daily and Weekly Stochastic.

Red background: bearish alignment.

Gray background: trend conflict (Daily and Weekly disagree).

✅ This script is ideal for swing traders or position traders who want to enter with confirmation while avoiding false signals during trend conflict zones.

🔔 Alerts are provided for BUY and SELL signals once all conditions are met.

How to use:

Apply on timeframe (4H recommended).

Add alerts for "BUY Alert" and "SELL Alert".

Use background color and plotted labels as entry filters.

Disclaimer: This is not financial advice. Always use proper risk management and test on demo accounts first.