The Derivative Forex Signals Oscillator for Metatrader 4 is based on the popular RSI indicator and 3 exponential moving averages with different period settings (3EMA).
The indicator provides short-term trend direction that works very well for scalping and day trading currency pairs.
After loading the Forex indicator to the chart, it appears in a sub-trading window underneath the main MT4 chart.
The Derivative Forex Signals Oscillator is very easy to understand and oscillates above and below the zero (0.00) level.
In order to avoid trading against the overall currency trend, it’s recommended to use together with a longer-term trend indicator.
Only trade in the direction of the overall trend. This will reduce the number of unprofitable signals by at least 50%!
- The short-term trend is considered positive when the indicator value turns back above the 0.00 level from below. Bullish signal.
- The short-term trend is considered negative when the indicator value turns back below the 0.00 level from above. Bearish signal.
- Works great for scalping and day trading purposes.
Feel free to explore the Derivative Forex Signals Oscillator indicator’s different parameters and settings to create your own personalized indicator setup.
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Indicator Example Chart (EUR/USD M15 Chart Example)
Here’s an example of how the indicator should look like when loaded onto the Metatrader 4 chart.
Finding Buy and Sell Triggers With The Derivative Forex Signals Oscillator MT4 Indicator
Buy Signal: Initiate a buy trade when the purple bar turns back above the zero level from below (see chart).
Place stop loss 3 pips below short-term support, or use your own favorite SL method.
Exit the buy trade when the purple bar turns back below the zero level, or use your own favorite take profit method.
Alternatively, utilize a fixed profit target to exit the long trade, for example, close the trade for 20 pips profit on the M5 chart.
Sell Signal: Initiate a sell trade when the purple bar turns back below the zero level from above (bearish signal).
Place stop loss 3 pips above short-term resistance, or use your own favorite SL method.
Exit the sell trade when the purple bar turns back above the zero level, or use your own favorite take profit method.
Alternatively, utilize a fixed profit target to exit the short trade, for example, close the trade for 12 pips profit on the M1 scalping chart.
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RSI length, EMA 1 length, EMA 2 length, EMA 3 length, MVA length, price, colors, width, style.
More Info About This Indicator
Tradable Currency pairs: Any
Trading Platform: MT4
Time frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: price oscillator
Copy and paste the indicator in the MT4 indicators data folder.
Then restart the MT4 terminal and attach it to any chart.