The Elliott Wave Oscillator is a technical forex MT4 indicator based on Elliott Waves.
The indicator floats above and below its neutral zero level (0.00).
- Elliott Wave bars positioned above the zero level are considered bullish. In this case, we look for buy trade opportunities.
- Elliott Wave bars positioned below the zero level are considered bearish. In this case, we look for sell trade opportunities.
Don’t use this indicator on its own; instead, use it together with any trend trading indicator.
Examples of trend indicators that can be traded together with the Elliott Wave Oscillator include:
Simple moving average(s), Exponential moving averages, Bollinger Bands, ADX,…
Trade signals issued by the Elliott Wave Oscillator in the direction of the overall trend.
Overall trend upwards? Trade the positive Elliott Wave bars.
Overall trend downwards? Trade the negative Elliott Wave bars.
Free Download
Download the “elliott-wave-oscillator.mq4” MT4 indicator
Indicator Chart (EUR/USD M15)
The EUR/USD 15-Minute chart below displays the Elliott Wave Oscillator Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Elliott Wave Oscillator MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Go long when the Elliott Wave Oscillator bar crosses back above the zero level from below and the overall trend is bullish.
Sell Signal: Go short when the Elliott Wave Oscillator bar crosses back below the zero level from above and the overall trend is bearish.
Trade Exit: Use your own method of trade exit.
Elliott Wave Oscillator + Fibonacci Bands MT4 Scalping Strategy
This MT4 strategy combines momentum and trend analysis to identify high-probability scalping opportunities on short time frames such as M1, M5, and M15.
The Elliott Wave Oscillator Indicator uses a histogram to indicate market momentum: a histogram above 0 signals a buy opportunity, while a histogram below 0 signals a sell opportunity.
The Fibonacci Bands Indicator helps determine the market trend.
Upward-sloping bands indicate a bullish trend, while downward-sloping bands indicate a bearish trend.
This strategy is ideal for traders looking for quick entries in line with momentum and trend direction.
The combination of oscillator signals and trend confirmation reduces false entries and improves scalp trade accuracy.
It works best during active market sessions with clear momentum.
Buy Entry Rules
- Fibonacci Bands must slope upward, indicating a bullish trend.
- The Elliott Wave Oscillator histogram is above 0, confirming bullish momentum.
- Enter a buy trade at the open of the next candle after both conditions are met.
- Place a stop loss below the most recent swing low or the lower Fibonacci band.
- Close the trade when Fibonacci Bands start to slope downward, or the oscillator histogram falls below 0.
Sell Entry Rules
- Fibonacci Bands must slope downward, indicating a bearish trend.
- The Elliott Wave Oscillator histogram is below 0, confirming bearish momentum.
- Enter a sell trade at the open of the next candle after both conditions are met.
- Place a stop loss above the most recent swing high or the upper Fibonacci band.
- Close the trade when Fibonacci Bands start to slope upward, or the oscillator histogram rises above 0.
Advantages
- Combining trend and momentum increases the likelihood of successful trades.
- Fibonacci Bands provide dynamic support and resistance levels for better entries and exits.
- Suitable for multiple short time frames, offering flexibility for scalpers.
- Helps traders identify both trend-following and counter-trend opportunities when momentum shifts.
- Can be applied to major, minor, and exotic currency pairs.
- Allows quick adaptation to changing market conditions using the oscillator and band slope.
Drawbacks
- Oscillator signals may generate false entries in choppy or low-volume markets.
- Trend changes may occur abruptly, triggering stop losses before momentum develops.
- Missed entries can occur if both oscillator and trend conditions do not align perfectly.
Case Study 1
On EURUSD M5, Fibonacci Bands sloped upward, indicating a bullish trend.
The Elliott Wave Oscillator histogram moved above 0 at 1.1025.
A buy trade was entered on the next candle at 1.1027 with the stop loss set at 1.1012 below the recent swing low.
Price advanced steadily and reached 1.1065, giving a profit of 38 pips.
The alignment of trend and momentum ensured a precise and profitable scalp.
Case Study 2
On GBPJPY M1, Fibonacci Bands sloped downward, indicating a bearish trend.
The Elliott Wave Oscillator histogram dropped below 0 at 162.50.
A sell trade was opened on the next candle at 162.48 with a stop loss at 162.75 above the recent swing high.
Price declined to 162.10, hitting support and closing the trade for 38 pips.
Combining trend direction and momentum signals allowed a fast and accurate scalp.
Strategy Tips
- Focus on active trading sessions for stronger momentum moves.
- Use M1 for quick scalps, M5 for slightly larger intraday moves, and M15 for trend-following intraday setups.
- Confirm higher time frame trends to filter low-probability trades.
- Wait for candle close confirmation when both oscillator and Fibonacci conditions align.
- Adjust stop loss and take profit according to recent swing points and band levels.
- Skip setups if trend and momentum signals are weak or conflicting.
Download Now
Download the “elliott-wave-oscillator.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Elliott Wave
