The Ergodic Oscillator indicator for MT4 provides short-term signals that work great for scalpers and day traders alike.
The indicator appears in a separate MT4 chart window as a red colored oscillator that swings back and forth above and below the 0.00 midpoint.
The Ergodic Oscillator can be used in multiple ways.
Buy & Sell Trade Example
- Open a buy position as soon as the red colored histogram bars cross the 0.00 midpoint bottom-up.
- Open a sell position as soon as the red colored histogram bars cross the 0.00 midpoint top-down.
The Ergodic Oscillator 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 “ergodic.mq4” indicator for MT4
Indicator Chart (EUR/USD M30)
The example chart below displays the Ergodic Oscillator mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy to trade with the Ergodic Oscillator 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: Oscillator
Does the indicator repaint? No.
MT4 Day Trading Strategy: Ergodic Oscillator & Wajdyss T3 Scalper
This day trading strategy combines the Ergodic Oscillator and Wajdyss T3 Scalper indicators for MT4 to identify precise entry points in trending markets.
The Ergodic Oscillator, a momentum indicator, helps determine the strength and direction of the trend, while the Wajdyss T3 Scalper provides timely buy and sell signals.
This strategy is particularly effective on lower timeframes such as M5 and M15, making it suitable for active day traders seeking consistent profits.
Buy Entry Rules
- Ensure the Ergodic Oscillator is above the zero line, indicating bullish momentum.
- Wait for the Wajdyss T3 Scalper to display a green arrow, signaling a buy opportunity.
- Enter a buy trade at the close of the candle that confirms the green arrow signal.
- Place the stop loss just below the recent swing low to protect against potential reversals.
- Set a take profit target at a risk-reward ratio of 1:2, or exit the trade when the Ergodic Oscillator starts to decline.
Sell Entry Rules
- Confirm that the Ergodic Oscillator is below the zero line, indicating bearish momentum.
- Wait for the Wajdyss T3 Scalper to display a red arrow, signaling a sell opportunity.
- Enter a sell trade at the close of the candle that confirms the red arrow signal.
- Place the stop loss just above the recent swing high to mitigate potential losses.
- Set a take profit target at a risk-reward ratio of 1:2, or exit the trade when the Ergodic Oscillator starts to rise.
Advantages
- Combines momentum analysis with precise entry signals for improved trade accuracy.
- Suitable for trending markets, allowing traders to capitalize on sustained price movements.
- Provides clear buy and sell signals, reducing decision-making time.
- It can be adapted to various currency pairs and timeframes, offering flexibility in trading strategies.
Drawbacks
- Requires consistent discipline to avoid chasing trades during small retracements.
- Performance can be affected by sudden news events, causing unexpected reversals.
- Indicators may lag during extremely volatile market conditions, leading to delayed entries.
Example Case Studies
Case Study 1
On a 5-minute AUD/USD chart, the Ergodic Oscillator was above the zero line, indicating bullish momentum.
The Wajdyss T3 Scalper displayed a green arrow, signaling a buy opportunity.
The trader entered the trade at the close of the confirming candle, placed the stop loss below the recent swing low, and set a take profit target at twice the risk.
The trade was successful, yielding a profit as the price continued to rise.
Case Study 2
On a 15-minute USD/JPY chart, the Ergodic Oscillator was below the zero line, indicating bearish momentum.
The Wajdyss T3 Scalper displayed a red arrow, signaling a sell opportunity.
The trader entered the trade at the close of the confirming candle, placed the stop loss above the recent swing high, and set a take profit target at twice the risk.
The trade reached the take profit level as the price continued downward.
Strategy Tips
- Use higher timeframes (e.g., M30 or H1) to confirm the overall trend direction before taking trades on lower timeframes.
- Focus on currency pairs with high liquidity to reduce slippage and improve trade execution.
- Combine this strategy with support and resistance levels to strengthen trade confirmation.
