About the Simple Decycler Indicator
The Simple Decycler indicator for MT5, developed by John F. Ehlers, is a trend analysis tool based on his “Decyclers” article in *Technical Analysis of Stocks & Commodities* (September 2015).
The indicator uses three distinct lines—red (top), blue (middle), and green (bottom)—to highlight market direction and potential trade opportunities.
When price is above the red top line, the market is considered bullish; when below the green bottom line, it is bearish.
Price between the lines signals a range-bound condition.
Traders can use the blue middle line as a decision point: a close above it signals a buy opportunity, while a close below it signals a sell.
Exits are triggered when price crosses back over the middle line against the trade direction.
The Simple Decycler is non-repainting, reliable, and works on all currency pairs and timeframes.
It helps traders identify trend continuation, reversals, and range-bound behavior, making it suitable for scalping, intraday, and swing trading.
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Key Features
- Three lines (red, blue, green) indicate bullish, bearish, and range-bound conditions.
- The blue line serves as a decision point for buy and sell trades.
- Non-repainting for reliable trade signals.
- Highlights support and resistance during range-bound markets.
- Adapts to trending conditions where price can extend beyond upper and lower boundaries.
Indicator Chart
The Simple Decycler Indicator plots three colored lines on the main chart.
Price above the red line shows bullish conditions, below the green line shows bearish conditions, and between the lines indicates a range.
The chart illustrates buy and sell signals triggered by crosses above or below the blue middle line.
Guide to Trade with the Simple Decycler Indicator
Buy Rules
- Wait for the price to open and close above the blue middle line.
- Confirm that price is trending upward or momentum is bullish.
- Check that other trend-confirming signals, if used, align.
- Open a buy trade once conditions are confirmed.
Sell Rules
- Wait for price to open and close below the blue middle line.
- Confirm that price is trending downward or momentum is bearish.
- Check that other trend-confirming signals, if used, align.
- Open a sell trade once conditions are confirmed.
Stop Loss
- Place stop losses below recent swing lows for buy trades.
- Place stop losses above recent swing highs for sell trades.
- Optionally use the green bottom line for buy stops and the red top line for sell stops during range-bound markets.
Take Profit
- Close buy trades if price closes below the blue middle line or hits the upper boundary during trending moves.
- Close sell trades if price closes above the blue middle line or hits the lower boundary during trending moves.
- Consider trailing profits to follow strong trends beyond the indicator boundaries.
MT5 Scalping Strategy Using Simple Decycler Indicator
This scalping strategy combines the Simple Decycler Indicator with the Fast TRIX Indicator to capture short intraday moves during high liquidity sessions.
The Simple Decycler defines market structure through a dynamic blue middle line.
When candles close above this line, price is considered in bullish territory. When candles close below it, bearish conditions dominate.
This filter helps isolate directional bias and reduces noise during sideways movement.
The Fast TRIX Indicator measures momentum changes through a smoothed oscillator line.
A green TRIX line signals buy momentum, while a red TRIX line signals sell pressure.
This strategy is designed for M1 and M5 charts, ideally during London and New York sessions where price moves with clear momentum shifts.
Buy Entry Rules
- Confirm that candles are closing above the blue middle line of the Simple Decycler Indicator, showing bullish territory.
- Wait for the Fast TRIX Indicator to print a green line confirming buy momentum.
- Enter a buy trade at the close of the signal candle during active session conditions.
- Place the stop loss below the most recent intraday swing low or below a short consolidation range.
- Close the trade when candles begin closing below the blue middle line because it signals a loss of bullish structure.
- Alternative exit: close the trade when the Fast TRIX Indicator turns red because it confirms bearish momentum has taken over.
Sell Entry Rules
- Confirm that candles are closing below the blue middle line of the Simple Decycler Indicator, showing bearish territory.
- Wait for the Fast TRIX Indicator to print a red line confirming sell momentum.
- Enter a sell trade at the close of the signal candle during active trading hours.
- Place the stop loss above the most recent intraday swing high or above a rejection zone.
- Close the trade when candles begin closing above the blue middle line because it signals weakening bearish control.
- Alternative exit: close the trade when the Fast TRIX Indicator turns green because it confirms bullish momentum reversal.
Case Study 1
On EURUSD M5 during the London session, candles closed above the Simple Decycler blue middle line after a brief consolidation.
Shortly after, the Fast TRIX Indicator printed a green line confirming bullish momentum.
A buy trade was opened at candle close.
The stop loss was placed below the recent intraday swing low formed before the breakout.
Later, price started closing back below the blue middle line.
The trade was closed because the Simple Decycler Indicator signaled that bullish territory had been lost.
Case Study 2
On GBPJPY M1 during the New York session, candles closed below the Simple Decycler blue middle line, confirming bearish territory.
The Fast TRIX Indicator followed with a red line signal.
A sell trade was opened at signal candle close.
The stop loss was placed above a recent rejection high formed during a minor pullback.
Shortly after, the Fast TRIX Indicator switched from red to green.
The trade was closed because the indicator signaled a bullish momentum reversal.
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FAQ
How does the Simple Decycler Indicator determine trends?
It uses three lines: red for bullish, green for bearish, and blue as a decision point.
Price relative to these lines indicates market conditions and guides entries and exits.
Can the indicator be used during range-bound markets?
Yes. Price tends to bounce off the upper and lower lines, providing support and resistance levels for potential trades.
Does the indicator repaint?
No. Signals remain fixed, allowing traders to rely on the crosses above or below the middle line for trade decisions.
Summary
The Simple Decycler Indicator is a versatile tool that highlights bullish, bearish, and range-bound conditions using three colored lines.
Its clear decision line simplifies trade entries, exits, and trend analysis.
Using it alongside well-placed stop losses, take profit levels, and trend confirmation improves trade precision and helps manage risk effectively.
