About the Discipline Oscillator Indicator
Discipline Oscillator is a free custom MT4 (Metatrader 4) indicator that identifies great short-term trade opportunities for scalpers and day traders.
The indicator appears as a colored trend oscillator in a separate MT4 chart window and uses no extreme upper and lower borders.
Buying and selling currency pairs with this oscillator-type indicator is a straightforward task:
- A green trend bar is a buy signal.
- A red trend bar is a sell signal.
Free Download
Download the “discipline-oscillator.mq4” indicator for MT4
Key Features
- Generates clear buy and sell signals based on market momentum.
- Works seamlessly across all timeframes and currency pairs.
- Non-repainting; signals remain valid after the bar closes.
- Compatible with scalping, day trading, and swing trading strategies.
- Easy to install and configure within the MetaTrader 4 platform.
Indicator Example Chart (EUR/USD Daily)
Below is an example chart showcasing the Discipline Oscillator Forex Indicator in action on the EUR/USD D1 timeframe.
How to Trade Using This Indicator
Entry Rules
- Enter a buy trade when the oscillator turns green, indicating bullish momentum.
- Conversely, enter a sell trade when the oscillator turns red, signaling bearish momentum.
- It’s advisable to wait for the bar to close before executing the trade to confirm the signal’s validity.
Stop Loss and Take Profit
- Place your stop loss just below the most recent swing low for buy trades, and above the most recent swing high for sell trades.
- For take profit, consider using a risk-to-reward ratio of at least 1:2, or target the next significant support or resistance level.
The X Super Trend Candles Discipline Oscillator MT4 Strategy
This strategy combines the X Super Trend Candles Indicator with the Discipline Oscillator Indicator to create a powerful and well-filtered trading system.
The X Super Trend Candles indicator serves as a trend filter by coloring the candlesticks, making it easy to see the market’s overall direction.
The Discipline Oscillator acts as a precise signal generator, providing the final trigger for entries.
By using this dual-indicator approach, you can ensure that your trades are always in the direction of the dominant trend, which significantly increases your probability of success.
This is a versatile system suitable for any currency pair and is particularly effective on time frames from M15 to H1.
Buy Entry Rules
- The X Super Trend Candles indicator displays green-colored candlesticks, confirming a bullish trend.
- The Discipline Oscillator indicator displays a green trend bar, signaling a buy opportunity.
- Stop Loss: Place your stop loss below the most recent swing low.
- Take Profit: Exit when the Discipline Oscillator trend bar changes to red, or when the X Super Trend Candles change to a red color.
Sell Entry Rules
- The X Super Trend Candles indicator displays red-colored candlesticks, confirming a bearish trend.
- The Discipline Oscillator indicator displays a red trend bar, signaling a sell opportunity.
- Stop Loss: Place your stop loss above the most recent swing high.
- Take Profit: Exit when the Discipline Oscillator trend bar changes to green, or when the X Super Trend Candles change to a green color.
Advantages
- High-Quality Signals: The dual confirmation from a trend filter and an entry signal significantly increases the probability of a successful trade.
- Clarity: Both indicators are visually straightforward to read, making the system simple to understand and execute for traders of all experience levels.
- Reduced Noise: The X Super Trend Candles indicator helps to filter out minor market fluctuations, allowing you to focus on the main trend.
Case Studies
Case Study 1: Buy Trade
On a 15-minute chart for EUR/USD, the candlesticks turned green, confirming a strong uptrend.
After a brief period of consolidation, the Discipline Oscillator also turned green.
A buy trade was entered with a stop loss placed below the recent swing low.
The price continued its upward momentum, and the trade was closed for a solid profit when the Discipline Oscillator trend bar turned red, signaling a potential reversal.
Case Study 2: Sell Trade
On an H1 chart for GBP/USD, the candlesticks turned red, signaling a clear downtrend.
The Discipline Oscillator trend bar also turned red, giving a sell signal.
A sell trade was opened with a stop loss placed above the recent swing high.
The price dropped sharply over the next few hours, and the trade was exited for a significant profit when the X Super Trend Candles turned back to a green color, indicating a potential change in trend direction.
Strategy Tips
- Confirm the Trend: Always ensure the X Super Trend Candles are clearly showing a strong, defined trend before looking for a signal from the Discipline Oscillator.
- Risk Management: Use a fixed risk percentage per trade, such as 1% or 2%, and always use a stop loss to protect your trading capital.
- Trade with Discipline: Stick to the rules. Do not enter a trade if both indicators are not in clear agreement. Patience is key to making this system work.
Download Now
Download the “discipline-oscillator.mq4” indicator for Metatrader 4
Indicator Specifications
| Specification | Detail |
|---|---|
| Platform | MetaTrader 4 (MT4) |
| Timeframes | All Timeframes |
| Markets | Forex, CFDs, Indices, Commodities, Cryptocurrencies |
| Signal Type | Buy/Sell Histogram |
| Repainting | No |
| Inputs | Adjustable parameters for customization |
FAQ — Practical Questions Traders Ask
1. Can I use this indicator for trend confirmation?
Yes, the Discipline Oscillator is excellent for confirming trends.
If the histogram stays green consistently, it indicates a strong uptrend; if red, a strong downtrend.
Use it alongside moving averages or trendlines to validate trade setups.
2. How do I avoid false signals in ranging markets?
During sideways or choppy markets, the oscillator may give mixed signals.
To avoid false entries, combine it with support/resistance levels or the ADX indicator to ensure the market has enough momentum before taking trades.
3. Can I combine it with other oscillators?
Yes, combining the Discipline Oscillator with RSI, Stochastic, or MACD can improve accuracy.
For example, only take buy trades when the oscillator is green and RSI is above 50 to align momentum with trend direction.
4. How can I set optimal stop loss and take profit?
Place a stop loss just below the nearest swing low for buy trades, or above the swing high for sell trades.
Take profit can be set using a risk-to-reward ratio of 1:2 or at the next support/resistance zone indicated on higher timeframes.
5. Can this indicator help in multi-timeframe analysis?
Absolutely. Check the oscillator on a higher timeframe to identify the main trend, then switch to a lower timeframe for precise entries.
This strategy reduces the chance of trading against the broader trend and increases the success rate.
Summary
The Discipline Oscillator Forex Indicator for MT4 is a user-friendly tool that offers clear buy and sell signals, making it suitable for traders of all experience levels.
By combining it with other technical analysis tools and maintaining disciplined risk management practices, traders can enhance their trading strategies and improve overall performance.
