The Oracle Direction Forex indicator for Metatrader 4 provides high-quality trend signals that work for any currency pair and time frame.
The indicator appears as colored blue/red/yellow histogram bars in a bottom window of the trading platform.
Oracle Direction is a beginner-friendly trading indicator with easy-to-follow signals that can be used as a standalone trading tool for both trade entry and exit.
Buy & Sell Trade Example
- Initiate a buy order when the indicator prints blue arrows for both rows.
- Initiate a sell order when the indicator prints red arrows for both rows.
- Stay aside when the arrows are mixed colors.
For scalping and day trading, the indicator performs best during the London and New York trading sessions.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “oracle direction.ex4” indicator for MT4
Indicator Chart (EUR/USD M30)
The picture below shows the Oracle Direction mt4 indicator in action on the trading chart.
After you have downloaded and installed the indicator (mq4 or ex4 format) to the trading platform, it should look like the image as shown above.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the Oracle Direction Forex 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: Trend
Does the indicator repaint? No.
Oracle Direction + Chandelier Exit Forex Scalping Strategy
This strategy uses the Oracle Direction indicator for clean entry signals (blue arrows, both rows = buy, red arrows, both rows = sell).
The Chandelier Exit indicator manages exits and trail stops. It is designed for fast, intraday scalps on M1, M5, and M15 charts.
Oracle Direction gives direction bias, requiring both rows to align for a valid signal.
Buy Entry Rules
- Wait until Oracle Direction prints blue arrows on both rows, indicating strong buy alignment.
- Confirm price is above your entry candle close (i.e., momentum is upward). Optionally, ensure no strong resistance immediately overhead.
- Enter a buy at the close of the bar that completes the alignment.
- Initial stop loss: place it just below the Chandelier Exit line (if it’s below the price) or just below the recent low.
- Let Chandelier Exit trail your stop. You exit the trade when the price closes below the Chandelier Exit line or if Oracle Direction reverses (red arrows on both rows).
Sell Entry Rules
- Wait until Oracle Direction prints red arrows on both rows, signaling a strong sell trend.
- Confirm price is below the close of the signal candle (momentum downward).
- Enter a sell at the close of that confirming candle.
- Initial stop loss: just above the Chandelier Exit line (if above price) or just above the recent high, with a small buffer.
- Let Chandelier Exit trail your stop. Exit when price closes above the Chandelier Exit line or the Oracle Direction reverses (blue arrows on both rows).
Advantages
- You use a strict directional filter (Oracle Direction) to avoid noisy signals.
- The method works across multiple timeframes (M1, M5, M15) with the same logic.
- Scalping with a trailing stop often captures larger portions of moves while cutting losses early.
Drawbacks
- Oracle Direction may lag in fast price swings, so entry can be slightly delayed.
- In choppy or ranging markets, the Chandelier Exit may be hit prematurely, generating small losses or whipsaws.
- Requires fast execution and tight discipline to follow the trailing exit rules.
Case Study 1: EURUSD M5
During a strong up-move, Oracle Direction printed blue arrows on both rows.
A buy was entered at 1.1205. The Chandelier Exit (say, using period 14, multiplier 3) trailed below the price.
The stop was never hit as the price advanced strongly.
Eventually, price reversed and closed below the Chandelier Exit line, triggering exit at about 1.1228, yielding around 23 pips.
Case Study 2: GBPUSD M15
In the London session, Oracle Direction aligned red in both rows.
A sell was placed at 1.3102. The Chandelier Exit trailed above.
The trend continued downward; the exit was triggered later when the price closed above the Chandelier line at around 1.3075, netting about 27 pips.
Strategy Tips
- Test different Chandelier Exit settings (ATR period, multiplier) to fit each timeframe and pair volatility.
- Prefer pairs with tight spreads and good liquidity to reduce slippage on M1 and M5 trades.
- Avoid trading during major news events — volatility can cause erratic signals.
- Backtest over many months and across different pairs to validate how the system behaves.
- On higher timeframes (M15), you can afford a slightly larger ATR multiplier to allow bigger swings.
- Ensure exit discipline: always exit when the Chandelier Exit is breached, even if you believe the trend might continue.
This MT4 scalping strategy gives you a clear method of entry and a disciplined exit.
Use this on M1, M5, or M15 charts with suitable pairs, manage risk carefully, and let the trailing exit do the heavy lifting.
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Download the “oracle direction.ex4” indicator for Metatrader 4
