The Kaufman Efficiency Ratio indicator for Metatrader 4 is an oscillator that can help you to predict better trade entries and exits.
This Forex indicator appears as a red colored oscillator in a separate chart window and works the best for scalpers and day traders.
Kaufman Efficiency Ratio uses the 0 and 1 extreme boundaries.
Buy & sell signal:
- Open a buy trade when the overall trend is upward and the Kaufman Efficiency Ratio indicator reaches the 0 oversold value.
- Open a sell trade when the overall trend is downward and the Kaufman Efficiency Ratio indicator reaches the 1 overbought value.
- Exit the open buy/sell trade for a fixed profit target or wait for any opposite trading signal.
From our testings, the indicator does not repaint and works for any currency pair and time frame without slowing down the trading platform.
It can be used as a standalone technical tool or it can be combined with other technical indicators and trading strategies.
Try first on a demo account until you fully understand how this indicator works!
Indicator Chart Example
The picture above shows the indicator attached to the Euro / U.S. Dollar technical chart.
How to install the Kaufman Efficiency Ratio indicator to your Metatrader 4 platform?
- Download the kaufman-efficiency-ratio.mq4 indicator file here and save it to your computer
- Open your Metatrader 4 platform
- Click on “File” (top menu) and then select “Open Data Folder” from the drop down menu
- Click on “MQL4” and open the “Indicators” folder
- Paste the indicator file in this folder
- Restart Metatrader 4 and you’re ready to start using the indicator
How to edit the indicator?
- Attach the indicator to any trading chart of your preference
- Right click in the chart and select “Indicators List” from the drop down menu
- Select the indicator from the list and click on “Edit”
- Now you can start editing the indicator (Inputs, Colors and Visualization)
- Final step, click on the “OK” button to save the new configuration