The Value Chart oscillator, developed for MetaTrader 5, indicates overbought and oversold market conditions on the chart.
The indicator loads in a separate chart window as a red-colored line that oscillates between the extremes of 15 and -15 trading levels.
To identify overbought and oversold levels in the market:
- The market is considered oversold when the indicator reaches or surpasses the -8 value.
- The market is considered overbought when the indicator reaches or surpasses the 8 value.
Users can customize the indicator’s settings and parameters, including the indicator period and line color.
It is advised to demo trade with this technical oscillator until you fully understand how it works.
Keep in mind that its trading performance may fluctuate based on market conditions, so it’s crucial to maintain realistic expectations.
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value_charts_single_jj.mq5 Indicator (MT5)
Trading Chart EURUSD M30
Here is what the Value Chart oscillator indicator looks like when applied to the MT5 charting platform.
How To Buy And Sell Currency Pairs With The Value Chart Oscillator?
Find a simple trading strategy below:
Buy Signal
- Buy condition: The market should show a clear uptrend.
- Enter the buy trade when the Value Chart oscillator crosses back above -8 from below.
- Exit the buy trade for a risk-to-reward ratio of at least 1.5.
- Alternatively, close the buy trade when it reaches a predetermined fixed take profit target.
Sell Signal
- Sell condition: The market should show a clear downtrend.
- Enter the buy trade when the Value Chart oscillator crosses back below 8 from above.
- Exit the sell trade for a risk-to-reward ratio of at least 1.5.
- Alternatively, close the sell trade when it reaches a predetermined fixed take profit target.
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value_charts_single_jj.mq5 Indicator (MT5)
MT5 Trading Strategy: Value-Guppy Momentum Pullback
This powerful trading strategy combines the Value Chart Oscillator and the Guppy Zones Indicator to catch high-probability trend continuation trades with well-timed entries.
Indicators Used
- Value Chart Oscillator: Identifies overbought and oversold zones more accurately than traditional oscillators.
- Guppy Zones: Detects short-term and long-term trend alignment using colored moving average ribbons.
Timeframes
This strategy works best on the H1 and H4 charts for swing trading. For intraday setups, M15 is also effective.
Buy Entry Rules
- The Guppy Zones indicator shows a clear uptrend (short-term and long-term bands are aligned upward).
- Wait for a pullback where the Value Chart Oscillator moves into the oversold zone (below 8).
- Enter a long trade when the oscillator crosses back above the -8 level, signaling the end of the pullback.
- Set stop-loss just below the most recent swing low.
- Target 2x the risk or the next resistance level.
Sell Entry Rules
- The Guppy Zones indicator shows a clear downtrend (short-term and long-term bands are aligned downward).
- Wait for a pullback where the Value Chart Oscillator moves into the overbought zone (above +8).
- Enter a short trade when the oscillator crosses back below the +8 level, signaling the end of the retracement.
- Set stop-loss just above the recent swing high.
- Target 2x the risk or the next support level.
Tips for Better Results
- Avoid trading in sideways or consolidating markets.
- Use a higher timeframe trend (e.g., H4) to confirm direction when trading on a lower timeframe (e.g., M15).
- Look for confluence with key support/resistance or price action patterns for stronger setups.
Conclusion
Combining the trend-filtering power of the Guppy Zones Indicator with the precision timing of the Value Chart Oscillator offers a solid edge in trend trading.
Try this strategy in a demo account to master the timing and build confidence before going live.
Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the value_charts_single_jj.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
