About the Ahoora Oscillator Indicator
The Ahoora Oscillator indicator for MT4 is a colored buy/sell oscillator that highlights overbought and oversold market conditions.
It uses extreme values of 0 and 100, with oversold near 0 and overbought near 100.
The indicator draws a colored signal line: green indicates an upward trend and bullish price action, while red indicates a downward trend and bearish price action.
To improve accuracy, use it alongside a trend-following indicator such as the 100-period MA or 89-period EMA.
Trade signals should align with the overall trend.
When price is above the trend indicator, focus on green lines and ignore red.
When price is below the trend indicator, focus on red lines and ignore green.
The default lookback period is 25, but increasing it (e.g., to 100) can reduce false signals.
Free Download
Download the “ahoora-indicator.mq4” MT4 indicator
Key Features
- Colored buy and sell oscillator lines for clear signals.
- Highlights overbought (near 100) and oversold (near 0) zones.
- Compatible with trend-following indicators for higher accuracy.
- Adjustable lookback period to control signal sensitivity.
Indicator Chart
The chart displays a colored oscillator line: green for bullish momentum and red for bearish momentum.
Traders can quickly see short-term trend direction and potential entry points. Align signals with the trend for best results.
Guide to Trade with the Ahoora Oscillator Indicator
Buy Rules
- Ensure the overall trend is upward using a trend-following indicator.
- Open a buy trade when the oscillator line turns green.
- Confirm alignment with price above the trend indicator.
- Ignore buy signals if price is below the trend line.
Sell Rules
- Ensure the overall trend is downward using a trend-following indicator.
- Open a sell trade when the oscillator line turns red.
- Confirm alignment with price below the trend indicator.
- Ignore sell signals if price is above the trend line.
Stop Loss
- For buy trades, place the stop below the recent minor support or consolidation.
- For sell trades, place the stop above the recent minor resistance or consolidation.
- Set the stop according to your preferred risk level.
Take Profit
- Close buy trades when the oscillator line turns red.
- Close sell trades when the oscillator line turns green.
- Optionally, use a fixed profit target for each trade.
Ahoora Oscillator + Urban Towers MT4 Scalping Strategy
This MT4 scalping strategy uses the Ahoora Oscillator together with the Urban Towers Indicator.
The Ahoora Oscillator shows momentum strength with simple color changes. A green line means bullish momentum. A red line means bearish momentum.
The Urban Towers indicator adds clear entry signals with blue arrows for buys and red arrows for sells.
This combination works well on M5 and M15 timeframes for fast scalping trades.
Buy Entry Rules
- Wait for the Ahoora Oscillator to turn green.
- Confirm the entry when a blue Urban Towers arrow appears.
- Enter a buy trade immediately after the arrow forms.
- Place the stop loss a few pips below the recent swing low.
- Take profit after a small move of 5 to 15 pips or when the oscillator turns red.
Sell Entry Rules
- Wait for the Ahoora Oscillator to turn red.
- Confirm the entry when a red Urban Towers arrow appears.
- Enter a sell trade immediately after the arrow forms.
- Place the stop loss a few pips above the recent swing high.
- Take profit after 5 to 15 pips or when the oscillator turns green.
Advantages
- Provides fast confirmation signals, allowing traders to react quickly to short intraday moves.
- The combination of arrows and color changes makes it simple to read, even for beginners.
- Helps identify early momentum shifts before the larger trend forms.
- Works well in active market sessions where price movement is steady.
- The rules are mechanical, which reduces emotional decision making during scalping.
- Fits easily into compact chart layouts without cluttering the screen.
Drawbacks
- Signals can appear too frequently, which may tempt traders to overtrade.
- The strategy depends heavily on short term volatility, so quiet sessions may produce weak results.
- Small pip targets can lead to low reward relative to time spent scalping.
Example Case Study 1 – AUDUSD M5
During the Asian session on AUDUSD M5, the Ahoora Oscillator turned green after a small pullback.
A blue Urban Towers arrow appeared soon after.
A buy trade was opened and the stop loss was placed under the nearest swing low.
The pair climbed steadily and reached an 8 pip take profit target within minutes.
The oscillator stayed green for a short period, confirming the quick upward momentum.
Example Case Study 2 – GBPJPY M15
On GBPJPY M15, price rejected a resistance level and the oscillator switched to red.
A red Urban Towers arrow printed moments later.
A sell position was taken with a stop loss above the swing high.
The pair moved lower and produced a clean 12 pip scalping move.
The oscillator stayed red until the exit point, confirming bearish pressure throughout the trade.
Strategy Tips
- Avoid entering trades when the oscillator rapidly switches colors because the market has no clear direction.
- Close trades early if price hesitates or forms long wicks against your position.
- Use small lot sizes to reduce risk since scalping requires many trades.
- Check a higher timeframe trend to avoid trading against strong momentum.
- Exit immediately if the oscillator color changes and the arrow signal no longer supports your trade direction.
- Keep spreads in mind because wide spreads can eliminate most of the profit from small scalp targets.
Download Now
Download the “ahoora-indicator.mq4” Metatrader 4 indicator
FAQ
What is the recommended lookback period?
The default is 25. Increasing it to 100 can reduce false signals, especially in trending markets.
Do I need a trend-following indicator?
Yes, the oscillator works best when aligned with the overall trend to avoid trading against momentum.
Can it be used for scalping or day trading?
Yes, it performs well during the London and New York sessions when paired with trend confirmation.
Summary
The Ahoora Oscillator indicator for MT4 provides Forex traders with clear buy and sell signals using green and red oscillator lines.
Oversold and overbought conditions are easy to identify across multiple timeframes.
This tool is ideal for spotting short-term trend momentum and potential entries.
When combined with a trend-following indicator, it helps users focus on high-probability trades, manage entries and exits efficiently, and reduce exposure to false signals.
