The Algorithmic Megatrend Metatrader 4 indicator is a great buy/sell trend forex indicator.
This indicator identifies the most profitable trend and then generates buy and sell arrows in the direction of this trend.
The Algorithmic Megatrend forex indicator consists of a blue/red histogram located in a separate window and buy/sell trading arrows.
This is a good indicator for scalping (M5 chart) and day trading (M15, M30 chart).
Typically, one would look for short-term profits from this indicator throughout the London and U.S trading sessions.
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Download the “Algorithmic_megatrend.ex4” MT4 indicator
Indicator Chart (USD/CHF M15)
The USD/CHF M15 chart below displays the Algorithmic Megatrend forex indicator in action.
Basic Trading Signals
The signals from the Algorithmic Supertrend indicator are easy to interpret and goes as follows:
1. Arrow Signals
Buy Trade: Open buy trade when a blue arrow appears on your chart.
Sell Trade: Open sell trade when a red arrow appears on your chart.
Trade exit: Use your own method of trade exit.
2. Histogram Signals
Buy Trade: Open buy trade when the histogram turns blue (above the 0.0 level).
Sell Trade: Open sell trade when the histogram turns red (below the 0.0 level).
Trade exit: Exit the trade at an opposite signal or use your own method of trade exit.
Algorithmic Megatrend and Best Forex Scalping MT4 Strategy
This MT4 scalping strategy is built around trend alignment and precise execution using the Algorithmic Megatrend Metatrader 4 Forex Indicator together with the Best Forex Scalping Indicator MT4.
The core idea is simple. Trade only in the direction defined by the trend histogram and enter on clear arrow signals during short pullbacks.
The Algorithmic Megatrend indicator acts as the trend filter.
When the histogram is blue, buying pressure dominates and only long trades are considered.
When the histogram is red, selling pressure dominates and only short trades are allowed.
The Best Forex Scalping indicator provides the timing element by plotting arrows that highlight potential scalping entries.
This strategy is optimized for the M1 and M5 timeframes and is suitable for active scalpers who prefer fast decisions and short holding times.
It performs best during the London and New York sessions when price movement is clean and spreads remain tight.
Buy Entry Rules
- The Algorithmic Megatrend histogram must be blue.
- A blue arrow appears from the Best Forex Scalping indicator.
- Enter a buy trade at the close of the signal candle.
- Place the stop loss below the most recent swing low or micro support.
- Exit the trade when the histogram turns red or a red arrow appears.
Sell Entry Rules
- The Algorithmic Megatrend histogram must be red.
- A red arrow appears from the Best Forex Scalping indicator.
- Enter a sell trade at the close of the signal candle.
- Place the stop loss above the most recent swing high or micro resistance.
- Exit the trade when the histogram turns blue or a blue arrow appears.
Advantages
- Trades only in the dominant intraday direction.
- Dynamic exits adapt to real market momentum.
- Clear visual rules reduce hesitation and overanalysis.
- No fixed take profit allows stronger moves to develop.
Drawbacks
- Requires active trade management and screen time.
- Profit can reduce before the exit signal triggers.
- Not ideal for traders who prefer predefined targets.
- Sudden volatility spikes can trigger premature exits.
Case Study 1
On EURUSD M5 during the London session, the histogram remained blue for an extended period.
After a shallow pullback, a blue arrow appeared and a buy trade was executed.
Price continued rising in a smooth sequence of higher highs.
The trade was closed when the histogram finally changed color, capturing approximately 32 pips as the trend matured.
Case Study 2
On GBPUSD M1 during the New York session, the histogram turned red and stayed bearish.
A red arrow appeared following a brief correction.
A sell trade was entered and held as price declined steadily.
The position was exited when a blue arrow appeared against the trend, making 18 pips before momentum faded.
Strategy Tips
- Use the histogram as a permission tool rather than a signal generator.
- Wait for arrows that form after a pullback, not after extended price runs.
- Focus on one or two currency pairs to learn their scalping behavior.
- Ignore signals that appear during very small or overlapping candles.
- Reduce position size slightly to stay calm during rapid fluctuations.
- Close trades manually if price stalls and momentum disappears.
- Consistency in execution matters more than catching every signal.
Download Now
Download the “Algorithmic_megatrend.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (Histogram, UpColor, DnColor, Alerts, PushAlert) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Trend
