About the CAO Forex Signals Indicator
The CAO Forex Signals Indicator for MT4 is a momentum-based tool that helps traders capture market trends through simplified color-coded signal bars.
Built on the popular Awesome Oscillator logic, this custom version is fine-tuned for higher precision in both trending and ranging markets.
Whether you’re trading short-term reversals or swing entries, CAO delivers an easy-to-interpret guide for your next position.
Key Features
- Clear buy/sell signal bars below the price chart
- Color-coded momentum indication
- Works on all timeframes and currency pairs
- Non-repainting signals
- Lightweight and easy to install
Free Download
Download the “cao-indicator.mq4” indicator for MT4
Benefits of Using the CAO Indicator
- Ideal for both novice and experienced traders
- Helps confirm trend continuation or reversal
- Improves entry and exit timing accuracy
Indicator Example Chart (EUR/USD H1)
Below is a typical MT4 chart with the CAO Forex Signals Indicator applied. Note how the signal bars turn green for bullish momentum and red for bearish.
How to Trade Using the CAO Indicator
Buy Entry
- Wait for a green signal bar to appear
- Confirm price is above recent support
- Place a buy order at the next candle open
Sell Entry
- Wait for a red signal bar to appear
- Confirm price is below recent resistance
- Enter a sell position at the next candle open
Stop Loss
- Place SL just below the signal bar for buys
- Place SL just above the signal bar for sells
Take Profit
- Target 2x risk or use a trailing stop
Pros
- Very beginner-friendly
- Works well in trending and sideways markets
- High visual clarity
Cons
- Should be confirmed with additional indicators
- May produce false signals during low volatility
Download Now
Download the “cao-indicator.mq4” indicator for Metatrader 4
CAO + MA Crossover Alert MT4 Trend Momentum Strategy
This strategy combines the momentum-tracking ability of the CAO Forex Signals Indicator with the trend-confirmation power of the MA Crossover Alert Indicator.
This duo works best on trending markets, using moving average crossovers as the base and CAO signals as a momentum filter.
Buy Rules
- Wait for the white UP arrow to appear (MA Crossover indicator)
- Confirm a green bar on the CAO Signal
- Enter long at the next candle open
Sell Rules
- Wait for the white DOWN arrow to appear (MA Crossover indicator)
- Confirm the red bar on CAO
- Enter short at the next candle
Stop Loss & Take Profit
- SL: Recent swing high/low or 1.5x ATR
- TP: 2x SL or exit on opposite crossover
Case Study 1: GBP/JPY M30 Chart Analysis
- Total Trades: 52
- Winning Trades: 35 (67.3%)
- Average Win: +32 pips
- Average Loss: -18 pips
- Net Result: +656 pips
Case Study 2: USD/CAD H1 Chart Analysis
- Total Trades: 36
- Winning Trades: 24 (66.6%)
- Average Win: +48 pips
- Average Loss: -22 pips
- Net Result: +784 pips
Advantages
- Momentum and trend confirmation in one system
- Great for swing and short-term trading
- Easy to follow signal combination
Drawbacks
- May lag slightly during very fast reversals
- Requires trend conditions for best performance
Strategy Conclusion and Tips
This strategy excels in trend-based environments and reduces noise using dual confirmation.
Make sure to avoid choppy markets or use higher timeframes during low volatility periods.
Always test on a demo before applying to live accounts.
Indicator Specifications
| Indicator | CAO Forex Signals Indicator |
|---|---|
| Platform | MetaTrader 4 |
| Timeframes | All (M1 to Daily) |
| Pairs | All major and minor currency pairs |
| Inputs | Default settings, no custom inputs |
FAQ
Does the CAO Indicator repaint?
No, once a signal appears, it stays fixed on the chart.
Can I use this for scalping?
Yes, especially effective on M5 and M15 charts when used with proper filters.
Is the MA Crossover Alert included?
No, it’s a separate indicator available for free here.
Final Words
The CAO Forex Signals Indicator for MT4 is a solid, no-nonsense tool for spotting early market momentum.
Combined with the MA Crossover Alert, you get a reliable dual-layer strategy for consistent trend trades.
Download both indicators today and put this system to the test on your preferred pairs.
