Ultimate Oscillator is a free beginner-friendly mt4 (Metatrader 4) indicator that shows precise overbought & oversold trading levels on the chart.
The indicator is very reliable, lightweight, and will not slow down your trading platform.
The chart is considered overbought when the Ultimate Oscillator crosses above 70, while oversold when it crosses below 30.
Buy & Sell Trade Example
- Open a buy position when the indicator crosses back above 30 from below and the underlying trend is upwards.
- Open a sell position when the indicator crosses back below 70 from above and the underlying trend is downwards.
Combine the Ultimate Forex Oscillator with a trend-following trading strategy or system.
Free Download
Download the “Ultimate_Oscillator.mq4” indicator for MT4
Indicator Chart (GBP/USD H1)
The example chart below displays the Ultimate Oscillator mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method when trading with this technical oscillator indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Oscillator
Ultimate Oscillator + XTC Forex Trend Scalping Strategy for MT4
This scalping strategy combines the Ultimate Oscillator Indicator for MT4 with the XTC Forex Trend Indicator for MT4 to pinpoint short-term market reversals that align with the main intraday
trend.
The combination of momentum and trend visualization provides a balanced approach for traders who aim to capture small but consistent profits during active market sessions.
It works especially well on the M5 and M15 time frames, making it suitable for day traders and scalpers who prefer fast-paced environments.
The Ultimate Oscillator identifies oversold and overbought zones, helping traders find exhaustion points in price momentum.
Meanwhile, the XTC Forex Trend Indicator shows the market direction with a color-coded histogram — blue bars for bullish momentum and red bars for bearish movement.
When the oscillator and histogram agree, the probability of a successful scalp increases significantly.
Buy Entry Rules
- Wait until the Ultimate Oscillator crosses back above the 30 level from below, indicating the end of bearish pressure.
- Confirm that the XTC Forex Trend histogram turns blue, showing an upward trend.
- Enter a buy position at the opening of the next candle after confirmation.
- Set a stop loss 10–15 pips below the recent swing low or the nearest support level.
- Take profit after 20–30 pips or when the oscillator approaches the 70 level again.
Sell Entry Rules
- Wait until the Ultimate Oscillator crosses back below the 70 level from above, signaling exhaustion of bullish momentum.
- Confirm that the XTC Forex Trend histogram is red, showing a clear sell trend.
- Open a sell position at the next candle close after both confirmations align.
- Place a stop loss 10–15 pips above the last swing high or resistance zone.
- Take profit after 20–30 pips or when the oscillator drops near the 30 level again.
Advantages
- Combines trend and momentum, reducing false countertrend entries.
- Adaptable to all major currency pairs with low spreads.
- Works well during high volatility sessions, such as the London and New York overlap.
Drawbacks
- Requires quick execution and discipline in managing small stop losses.
- Limited reward potential per trade compared to swing systems.
- Performance may vary on pairs with wider spreads or less liquidity.
Case Study 1: USD/JPY 5-Minute Chart
On USD/JPY, during the London session, the Ultimate Oscillator crossed above the 30 line from oversold territory while the XTC Forex Trend histogram turned blue.
A buy position was taken at 150.45 with a 12-pip stop loss.
Within 40 minutes, the price reached 150.70, generating a quick 25-pip gain.
The trade was exited as the oscillator neared 70, confirming profit-taking momentum.
Case Study 2: EUR/GBP 15-Minute Chart
On EUR/GBP, the Ultimate Oscillator crossed below 70 while the XTC histogram remained red, signaling a bearish continuation.
A sell order was entered around 0.8460 with a stop loss at 0.8473.
Over the next hour, the pair dropped to 0.8438, capturing a clean 22 pips.
The oscillator later bounced near 30, prompting a timely exit from the scalp trade.
Strategy Tips
- Focus on trading during active hours when spreads are tight and liquidity is high.
- Avoid taking trades against the histogram color, even if the oscillator gives a signal.
- Use a trailing stop once the price moves 15 pips in your favor to protect profits.
- Monitor multiple pairs, but focus on only the strongest trending ones for the best results.
Download Now
Download the “Ultimate_Oscillator.mq4” indicator for Metatrader 4
