The Forecasting of Price Range indicator for mt4 (Metatrader) is a forecasting tool that predicts the price range in which a currency pair will trade for that particular day.
It gives you an idea where to set your profit take order and where to place a stop loss for your open position.
It also reveals trend direction.
The indicator pops up in the main MT4 chart window as a red colored bar.
Buy & Sell Trade Example
- Open a buy trade if the red bar is positioned above the open price (expect a bullish day).
- Open a sell trade if the red bar is positioned below the open price (expect a bearish day).
The Forecasting of Price Range 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 exotics) and shows promising results when used correctly.
Free Download
Download the “forecasting-of-price-range.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The example chart below displays the Forecasting of Price Range mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the Forecasting of Price Range 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: Forecasting
Does the indicator repaint? No.
MT4 Swing Trading Strategy: Forecasting of Price Range + VAR Moving Average
This swing trading strategy combines the Forecasting of Price Range Indicator with the VAR Moving Average Indicator to capture medium-term price swings on the H1 timeframe.
The Forecasting of Price Range indicator predicts the likely daily direction: big red candles indicate a bullish day, while big white candles indicate a bearish day.
The VAR Moving Average confirms trend direction: a green dotted line signals bullish momentum, and a red dotted line signals bearish momentum.
Using both indicators together helps traders enter swing trades aligned with the predicted market direction for higher-probability setups.
Buy Entry Rules
- Forecasting of Price Range shows a big red candle indicating a bullish expected day.
- The VAR Moving Average green dotted line is above the price, confirming bullish momentum.
- Enter a buy trade at the close of the confirming H1 candle.
- Place a stop loss below the recent swing low or the nearest support level.
- Set take profit at the next resistance level or a fixed target based on historical swing ranges (e.g., 50–80 pips).
Sell Entry Rules
- Forecasting of Price Range shows a big white candle, indicating a bearish expected day.
- The VAR Moving Average red dotted line is below the price, confirming bearish momentum.
- Enter a sell trade at the close of the confirming H1 candle.
- Place a stop loss above the recent swing high or nearest resistance level.
- Set take profit at the next support level or a fixed target based on historical swing ranges (e.g., 50–80 pips).
Advantages
- Combines forecasted daily direction with moving average trend confirmation for higher-probability swings.
- Effective for medium-term trades on H1 charts.
- Visual signals (candles + dotted lines) make entry decisions clear and fast.
- Flexible take profit allows adaptation to market volatility and swing range.
Drawbacks
- May provide false signals during sideways or low-volatility markets.
- Requires patience as H1 swings take time to develop.
- Not suitable for scalping or very short-term trades.
- Stop losses need careful placement to avoid being triggered by intraday noise.
Case Study 1: EUR/GBP on H1 Chart
During a bullish predicted day, the Forecasting of Price Range indicator displayed large red candles, and the VAR Moving Average showed a green dotted line above the price.
A buy trade was entered at 0.8730.
The recent swing low was 0.8718, placing the stop loss at 0.8715 (15 pips risk).
The next resistance level was at 0.8790, which was used as the take profit target.
Price steadily climbed and reached the target, resulting in a gain of 60 pips.
Case Study 2: AUD/CAD on H1 Chart
During a bearish predicted day, the Forecasting of Price Range displayed large white candles, and the VAR Moving Average red dotted line was below the price.
A sell trade was entered at 0.9125.
The recent swing high was 0.9140, placing the stop loss at 0.9145 (20 pips risk).
The next support level was at 0.9065, which became the take profit target.
Price moved downward over several hours and hit the target, providing a 60-pip profit.
Strategy Tips
- Focus on high-liquidity pairs to reduce spreads and improve swing execution.
- Confirm signals on the H1 chart before entering trades.
- Monitor nearby support/resistance levels to adjust take profit and stop loss dynamically.
- Avoid entering trades before major economic news releases that may cause unpredictable swings.
- Consider trailing stops once the price moves favorably to lock in profits on longer H1 swings.
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Download the “forecasting-of-price-range.mq4” indicator for Metatrader 4
