Overbought Oversold indicator for MT4

Overbought Oversold indicator for MT4 provides arrow based forex trading signals on chart and trend signals as histogram.

The Overbought and Oversold indicator for MT4 provides arrow-based forex trading signals on the price chart. Additionally, it provides trading signals based on a histogram in a separate window. So, technical forex traders can combine both the signals and trade accordingly.

In fact, the indicator works well for new and advanced forex traders and works on all intraday charts and daily, weekly and monthly charts.

Overbought and Oversold Indicator For MT4 Trading Signals

The above EURUSD H1 chart shows the Overbought and Oversold indicator for MT4 in action. The indicator shows the arrow trading signals in GREEN and RED on the price chart. Furthermore, in a separate indicator window, the histogram is shown in GREEN and RED.

The entry signal depends on two parameters. The arrow trading signal and the histogram color. The presence of GREEN histogram bars indicates a BULLISH market trend. So, forex traders should place BUY trade upon a GREEN arrow signal in the price chart. However, traders should avoid trading sell signals while the histogram is GREEN. Moreover, traders can exit the trade upon opposite arrow signals.

Similarly, the presence of the RED histogram shows a BEARISH price trend. So, technical traders should enter the market with a SELL position upon a SELL arrow signal on the chart. Moreover, traders should exit the trade on an opposite arrow signal. Furthermore, traders should avoid trading BUY arrow signals while the histogram is RED.

The above EURUSD H1 chart shows the Zero Line cross signal of the Histogram. The histogram zero-line cross signals are more stable and provide long-term trading signals than the arrow trading signals.

Traders can BUY once the histogram color changes to GREEN and is above the ZERO line with a stop loss below the previous swing low. On the other hand, the best method is to hold the position and ride the trend and exit with profit upon opposite histogram color and if the histogram moves below Zero line.

Similarly, traders can place a SELL trade once the histogram color changes to RED and is below the ZERO line, with a stop loss above the previous high, and exit with a profit upon opposite histogram color and if the histogram moves above the zero line.

Conclusion

Indeed, the Overbought and Oversold indicator for MT4 provides multiple types of signals and is highly customizable according to the requirements of the technical trader.