The red overbought/oversold trading oscillator for MT4 is a great Forex tool for accurate trade entry in an existing trend.
The red Forex oscillator extreme values are 0 and 1.
- The value 1 represents and extremely overbought market.
- The value 0 represents an extremely oversold market.
It’s highly recommended to trade this MT4 oscillator in agreement with the overall trend.
Use trend-following indicators to identify the trend and then use the red oscillator to pinpoint buy and sell entries.
- Market trend up? Trade the oversold oscillator signals near the 0 value. Ignore overbought signals near 1.
- Market trend down? Trade the overbought oscillator signals near the 1 value. Ignore oversold signals near 0.
The red Forex oscillator works for scalping, day trading and swing trading.
Feel free to experiment with its Fast M period and slow M period values.
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Red Overbought/Oversold Forex Oscillator Indicator Chart
Here’s an example of how the indicator should look like when loaded onto the Metatrader 4 chart.
You can apply the indicator to any currency pair and time frame of your preference.
Finding Buy and Sell Triggers With Red Forex Oscillator Technical Analysis Chart Indicator
Below is an example of how to buy and sell currency pairs with this Forex indicator:
Buy Trigger: Buy the currency pair when the overall trend is up and and the red oscillator for MT4 reaches the 0 oversold value.
Place a stop loss 2 pips below immediate support, or use your own stop loss placement method.
Take profit when the red oscillator value reaches 1 (overbought), or deploy your own take profit method.
Sell Trigger: Sell the currency pair when the overall trend is down and and the red oscillator for MT4 reaches the 1 overbought value.
Place a stop loss 2 pips above immediate resistance, or use your own stop loss placement method.
Take profit when the red oscillator value reaches 0 (oversold), or deploy your own take profit method.
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Fast M period, slow M period, colors, width, style.
- Trading oscillators (MACD, Stochastic, RSI,…)
- Trend indicators (Moving Average, Bollinger Bands, ADMI,…)
- Price action methods and techniques
More Info About This Indicator
Tradable Currency pairs: Any
Trading Platform: MT4
Time frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: oscillator
Copy and paste the indicator in the MT4 indicators data folder.
Then restart the MT4 terminal and attach it to any chart.