The Ahoora Oscillator MT4 forex indicator is a colored buy and sell technical oscillator indicator.
It deploys two extreme values, 0 and 100.
Oversold markets are found near the extreme 0 value while overbought markets are found near the extreme 100.
The Ahoora Oscillator draws a colored signal line:
- A green line suggests the oscillator trend is upward and price is bullish
- A red line suggests the oscillator trend is downward and price is bearish
This indicators needs to traded in agreement with a trend trading indicator.
For instance, the 100 period MA or 89 period EMA would work.
Trade Ahoora oscillator signals in the direction of the overall trend.
Price trades above the trend trading indicator? Trade the green oscillator lines and ignore the red ones.
Price trades below the trend trading indicator? Trade the red oscillator lines and ignore the green ones.
This approach works great for scalping and day trading during the London and New York trading sessions.
The default Ahoora oscillator “lookback” period is set to 25, I prefer to set it to 100, which reduces the number of false signals significantly.
You can change this value from the indicator’s inputs tab.
Free Download
Download the “ahoora-indicator.mq4” MT4 indicator
Indicator Chart (EUR/USD D1)
The EUR/USD Daily chart below displays the Ahoora Oscillator Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Ahoora Oscillator MT4 forex indicator are easy to interpret and go as follows:
Buy Signal: Open buy trade position when the Ahoora oscillator signal line changes color from red to green.
Sell Signal: Open sell trade position when the Ahoora oscillator signal line changes color from green to red.
Trade Exit: Close the open buy/sell trade when an opposite signal occurs, or use your own method of trade exit.
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
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (MA method, Lookback) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: oscillator
