The Forex Gump indicator for MT4 represents a popular and profitable trading system that’s been around for many years.
The indicator analyses the price chart and provides buy & sell trade entries in the form of red & blue signal arrows.
Forex Gump also calculates the total profit/loss in points, number of signals, number of profitable transactions, number of loss transactions, and displays the info in a mini dashboard.
Key Points
- Popular Forex system
- Good for beginners
- Provides buy & sell signals
- Well worth adding to your indicator collection
This indicator can work together with any existing trading strategy or system of your preference.
Free Download
Download the “Forex Gump.ex4” MT4 indicator
Trading Chart
The USD/JPY 1-hour chart below shows the Forex Gump indicator in action.
Basic Trading Signals
BUY:
- Open a buy trade when the blue signal arrow gets printed on the chart.
- Place a stop loss below the previous swing low.
- Exit the buy trade when a sell arrow appears on the chart.
SELL:
- Open a sell trade when the red signal arrow gets printed on the chart.
- Place a stop loss above the previous swing high price.
- Exit the sell trade when a buy arrow appears on the chart.
Download Now
Download the “Forex Gump.ex4” MT4 indicator
Enhanced Trading Strategy: Combining Forex Gump Indicator with ATR for Volatility-Based Confirmation
Overview
To improve the reliability of trade signals, this strategy integrates the Forex Gump Indicator with the Average True Range (ATR) indicator.
While the Forex Gump Indicator provides clear buy and sell signals through blue and red arrows, the ATR measures market volatility, helping to confirm the strength of potential breakouts and filter out false signals.
Required Indicators
- Forex Gump Indicator: Provides buy (blue arrow) and sell (red arrow) signals based on market analysis.
- Average True Range (ATR): Measures market volatility to assess the strength of price movements.
Trading Rules
Buy Setup
- Wait for the Forex Gump Indicator to display a blue buy arrow on the chart.
- Confirm that the ATR value is above its 14-period moving average, indicating increased volatility and a stronger potential breakout.
- If both conditions are met, enter a long position.
- Place a stop loss below the recent swing low.
- Set a take profit target based on a risk-to-reward ratio of at least 1:2 or exit when a red sell arrow appears.
Sell Setup
- Wait for the Forex Gump Indicator to display a red sell arrow on the chart.
- Confirm that the ATR value is above its 14-period moving average, indicating increased volatility and a stronger potential breakout.
- If both conditions are met, enter a short position.
- Place a stop loss above the recent swing high.
- Set a take profit target based on a risk-to-reward ratio of at least 1:2 or exit when a blue buy arrow appears.
Tips for Implementation
- Apply this strategy on time frames of 1 hour or higher to reduce market noise.
- Adjust the ATR period to suit the volatility characteristics of the currency pair being traded.
- Use additional tools like support and resistance levels to identify optimal entry and exit points.
- Always test the strategy on a demo account before applying it to live trading.
Strategy Conclusion
By combining the Forex Gump Indicator’s clear entry signals with the ATR’s volatility assessment, traders can enhance the accuracy of their trades.
This integrated approach aims to provide more reliable trading opportunities by confirming the strength of potential breakouts.
Adjustable Parameters & Settings
Information, short wave, period, period MA, colors, style
More Info About This Indicator
Currency Pairs: works on any currency pair
Trading Platform: developed for Metatrader 4 (MT4)
Time Frames: any
Indicator Type: Forex system
How to install the Forex Gump indicator in Metatrader 4?
- Copy and paste the Forex Gump.ex4 indicator into the MQL4 indicators folder.
- You can access this folder from the top menu as follows:
- File > Open Data Folder > MQL4 > Indicators (paste here)
