Entropy Math is a free MT4 (Metatrader 4) oscillator-type Forex indicator that works quite well for scalping currency pairs.
The indicator appears in a separate MT4 chart window as a yellow colored oscillator.
Entropy Math can be used in multiple ways.
Buy and Sell Example
- Open a buy scalping trade whenever the yellow colored bars cross the zero level bottom-up.
- Open a sell scalping trade whenever the yellow colored bars cross the zero level top-down.
The Entropy Math indicator can be used for both trade entry and exit, or as an additional confirmation filter for other strategies and systems.
The indicator works equally well on all currency pairs (majors, minors, and exotic) and shows promising results if used correctly.
Free Download
Download the “entropy-math.mq4” indicator for MT4
Indicator Chart (EUR/USD M5)
The example chart below displays the Entropy Math MT4 indicator in action.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy to trade with the Entropy Math Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Scalping
Does the indicator repaint? No.
Entropy Math + Pips Hunter MT4 Scalping Strategy
Intro
This scalping approach pairs the precise momentum reading of the Entropy Math Indicator for Forex Scalping (MT4) with the zone and bias signals of the Pips Hunter Indicator (MT4).
Together, they help you find quick, high-probability entries and exit them fast.
Use the system on 1-minute, 5-minute, and 15-minute charts. It suits active day traders and scalpers who accept small, frequent trades.
The Entropy Math gives low-lag momentum while Pips Hunter provides structural areas to place tighter stops and smarter targets.
Buy Entry Rules
- Entropy Math crosses back above the zero level.
- Pips Hunter displays a blue buy arrow.
- Confirm price is not trapped in a clear higher-timeframe resistance (check 1H).
- Enter on the close of a fresh bullish candle on your chosen timeframe once both indicators align.
- Stop loss: below the recent swing low or below the Pips Hunter support zone; typical range 6–20 pips on 5m depending on pair volatility.
- Take profit: aim 1.5x–2x your stop, or a fixed scalp of 8–30 pips depending on timeframe and spread.
Sell Entry Rules
- Entropy Math crosses back below the zero level.
- Pips Hunter displays a red sell arrow.
- Confirm price is not in a major higher-timeframe support area (check 1H).
- Enter on the close of a fresh bearish candle on your trading timeframe when both indicators agree.
- Stop loss: above the recent swing high or above the Pips Hunter resistance zone; typical range 6–20 pips on 5m adjusted for volatility.
- Take profit: aim 1.5x–2x your stop, or a fixed scalp of 8–30 pips depending on timeframe and spread.
Advantages
- Combines momentum with structure to reduce low-quality entries.
- Designed for quick trades with defined risk and reward.
- Adaptable across major pairs and sessions by tuning stop size.
- Easy to backtest on MT4 and to set alerts for indicator alignments.
Drawbacks
- False signals occur in choppy, low-trend conditions or during news spikes.
- Requires active monitoring on low timeframes or an alert system for part-time traders.
Example Case Study 1 — EURUSD, 5m
During the European session, entropy showed a steady shift from neutral into bullish momentum.
Pips Hunter displayed a blue arrow.
Entry at 1.0920 with a 10-pip stop under the swing low at 1.0910. Take profit set at 20 pips.
Price reached the target for a 2:1 reward.
This trade shows how momentum confirmation plus a nearby structural zone creates a clean scalp.
Example Case Study 2 — GBPUSD, 5m
At the London open, momentum dropped, and Entropy turned back below 0.
Pips Hunter showed a red sell arrow.
Short entry at 1.2700 used a 15-pip stop above the recent structure and a 25-pip take profit.
The pair moved in favor as momentum accelerated and TP was hit despite higher volatility.
The example highlights adjusting stop size for volatile pairs while keeping the core rules intact.
Strategy Tips
- Always check the economic calendar and avoid high-impact news within 15 minutes of entries.
- Adjust stop sizes for each pair and session. Widen stops for GBP/JPY and similar volatile crosses.
- Prefer majors and crosses with tight spreads. If the spread is wide, widen the TP or skip the pair.
- Use the 1-hour chart to determine the dominant bias. Prefer lower-timeframe trades that align with that bias.
