About the Ehlers CG Indicator
Ehlers CG is an MT4 (Metatrader 4) indicator that provides traders with actionable buy and sell signals.
It can be applied for both trade entry and exit or used as a trend confirmation filter alongside other strategies.
The indicator uses a red and blue signal line to indicate market direction and momentum.
It functions as a crossover-based system, making it particularly effective in trending markets.
By monitoring the interaction of the signal lines, traders can identify potential shifts in momentum and time their trades more efficiently.
Ehlers CG is versatile and works across all assets, including Forex, CFD stocks, indices, cryptocurrencies, and commodities.
The indicator adapts well to multiple timeframes and market conditions, offering promising results when applied correctly.
Free Download
Download the “ehlers-cg-indicator.mq4” indicator for MT4
Key Features
- Red and blue signal lines to indicate market trend and momentum
- Works for both trade entries and exits
- Can act as a trend confirmation filter for other systems
- Crossover system optimized for trending markets
- Compatible with Forex, CFD stocks, indices, cryptocurrencies, and commodities
- Adaptable to multiple timeframes and trading styles
Indicator Chart
The chart below shows the Ehlers CG Indicator in its MT4 window. The red and blue lines help traders identify trend direction and potential trade opportunities.
When the blue line crosses above the red line, it indicates potential bullish momentum and a buy opportunity.
Conversely, when the red line crosses above the blue line, it signals bearish momentum and a potential sell trade.
Traders can use these signals to align with market trends and optimize trade timing.
Guide to Trade with Ehlers CG Indicator
Buy Rules
- Enter a buy trade when the blue line crosses above the red line
- Confirm overall trend alignment on a higher timeframe
- Combine with support/resistance levels or other indicators for higher accuracy
- Hold until the crossover signals a potential reversal
Sell Rules
- Enter a sell trade when the red line crosses above the blue line
- Check trend direction and market conditions for confirmation
- Use trend filters or key resistance levels to validate the trade
- Maintain the position until the crossover indicates a reversal
Stop Loss
- Place stop loss slightly above the recent swing high for sells or below the swing low for buys
- Adjust according to asset volatility and recent market swings
- Leave enough room to avoid premature exits due to normal fluctuations
Take Profit
- Target previous swing highs/lows or nearby support/resistance zones
- Consider partial exits near significant levels
- Trail stops along the crossover direction to maximize trending moves
Practical Tips
- Combine with other indicators like moving averages or oscillators for stronger confirmation
- Use higher timeframe trends to validate lower timeframe signals
- Monitor the signal line crossovers for potential trend continuation or reversal
- Avoid trading during low liquidity periods for more reliable signals
Ehlers CG Indicator + Multi-Timeframe Triple Moving Average Forex Day Trading Strategy
This day trading strategy combines the Ehlers CG Forex Indicator MT4 with the Multi-Timeframe Triple Moving Average MT4.
The Ehlers CG Indicator identifies market trends early by showing momentum changes and price direction.
The Triple Moving Average gives a clear view of trend alignment across multiple timeframes.
This method works best on timeframes M15 and M30, making it suitable for intraday traders.
It is designed for major currency pairs like EURUSD, GBPUSD, USDJPY, and EURJPY, where trends are clear and spreads are low.
Buy Entry Rules
- Check that all three moving averages are aligned upward on the current timeframe and on higher timeframes.
- Wait for a buy signal from the Ehlers CG Indicator, typically when the oscillator crosses above the zero line.
- Enter a buy position at the close of the confirming candle.
- Place a stop loss below the recent swing low or just below the nearest moving average for protection.
- Set take profit at the next resistance level or aim for a risk-reward ratio of at least 1:2.
Sell Entry Rules
- Check that all three moving averages are aligned downward on the current timeframe and on higher timeframes.
- Wait for a sell signal from the Ehlers CG Indicator, typically when the oscillator crosses below zero.
- Enter a sell position at the close of the confirming candle.
- Place a stop loss above the recent swing high or just above the nearest moving average.
- Set take profit at the next support level or target a risk-reward ratio of at least 1:2.
Advantages
- Combines momentum confirmation with trend alignment for higher probability trades.
- Clear entry and exit rules make the strategy easy to follow.
- Works on multiple major pairs with minimal adjustments.
- Helps traders identify intraday trend direction and avoid sideways noise.
Drawbacks
- In choppy markets, signals may lag or give false entries.
- May not perform well on pairs with low liquidity or high spreads.
- Higher timeframe alignment is necessary, which may limit some entries.
Example Case Study 1 — EURUSD M15
During the London session, EURUSD was in a clear uptrend.
The three moving averages on M15 and H1 were aligned upward.
The Ehlers CG Indicator gave a buy signal when the histogram turned positive.
A buy entry was taken on the confirming candle close.
Stop loss was placed below the recent swing low, and take profit was set at the next resistance level.
The trade reached the target within an hour with a clean exit before momentum weakened.
Example Case Study 2 — GBPUSD M30
GBPUSD showed a downward trend on M30 with alignment on H1.
The Ehlers CG Indicator issued a sell signal as the oscillator crossed below zero.
Entry was taken at the candle close, confirming the sell.
Stop loss was set above the recent swing high, and take profit at the next support.
The trade hit the target after 90 minutes and exited before a small retracement occurred.
Strategy Tips
- Trade during active sessions, such as London or New York, for stronger trend moves.
- Focus on major pairs with low spreads to reduce trading costs.
- Only take trades when higher timeframe trends are aligned with the current timeframe.
- Consider scaling out or trailing profits if the price moves strongly in your favor.
- Keep a journal to track which times and pairs perform best with this strategy.
Download Now
Download the “ehlers-cg-indicator.mq4” indicator for Metatrader 4
FAQ
What markets can Ehlers CG be used on?
The indicator works on Forex, CFD stocks, indices, cryptocurrencies, and commodities, making it highly versatile for multiple trading instruments.
Is it suitable for all timeframes?
Yes, it can be applied on multiple timeframes. Higher timeframes generally provide more reliable trend signals, while lower timeframes allow for faster entries.
How does the crossover system work?
The system generates buy and sell signals when the blue and red lines cross each other, indicating shifts in momentum and potential trend direction.
Can it be combined with other strategies?
Yes, it can complement other indicators for trend confirmation, trade entry, or exit decisions to improve overall trading accuracy.
Summary
The Ehlers CG Indicator for MT4 is a flexible tool that helps traders identify trends, time trade entries and exits, and confirm market direction using red and blue crossover lines.
It works across multiple assets and timeframes.
It can serve as a primary trading system or as a confirmation tool for other strategies.
Proper use combined with risk management and trend analysis helps traders capture profitable moves and improve trade timing across different markets.
