The Forex Index MTF indicator for mt4 (Metatrader 4) is a typical oscillator that provides short-term trend direction for any pair.
The indicator pops up in a separate MT4 chart window as an oscillator that swings back and forth above and below the 0.00 level.
The Forex Index MTF indicator delivers the best results when combined with a longer-term trend indicator.
Buy & Sell Trade Example
- A new buy position should be opened as soon as the blue signal line crosses the 0.00 level bottom-up.
- A new sell position should be opened as soon as the blue signal line crosses the 0.00 level top-down.
The Forex Index MTF 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 “force-index_mtf.ex4” indicator for MT4
Indicator Chart (EUR/USD Daily)
The example chart below displays the Forex Index MTF 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 Forex Index MTF 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 Scalping Strategy: Forex Index MTF + Volty Channel Signals
This scalping strategy combines the Forex Index MTF Indicator with the Volty Channel Signals Indicator to provide fast, high-probability intraday trades.
The Forex Index shows overall market momentum: bullish when the blue line is above zero and bearish when below.
The Volty Channel Signals indicator adds confirmation with colored signal lines in the main chart: blue for bullish and red for bearish.
This combination helps scalpers enter trades aligned with short-term market momentum on 1-minute, 5-minute, or 15-minute charts.
Buy Entry Rules
- The Forex Index blue line must be above zero, indicating bullish momentum.
- The Volty Channel Signals line must turn blue on the main chart.
- Enter a buy trade at the close of the confirming candle.
- Set stop loss a few pips below the most recent swing low or below the Volty channel support.
- Set take profit at the next minor resistance level, previous swing high, or channel top—not strictly based on risk-to-reward ratio.
Sell Entry Rules
- The Forex Index blue line must be below zero, indicating bearish momentum.
- The Volty Channel Signals line must turn red on the main chart.
- Enter a sell trade at the close of the confirming candle.
- Place a stop loss a few pips above the most recent swing high or above the Volty channel resistance.
- Set take profit at the next minor support level, previous swing low, or channel bottom, instead of using a fixed risk-to-reward target.
Advantages
- Combines momentum (Forex Index) with precise entry signals (Volty Channel), reducing false entries.
- Works well for scalping on lower timeframes with clear visual cues.
- Flexible take profit settings allow adaptation to market conditions and volatility.
- Easy to monitor visually for fast-paced intraday trades.
Drawbacks
- Signals can lag during extremely volatile spikes or news events.
- Not suitable for long-term trades; designed for scalping only.
- Requires quick execution and monitoring due to short timeframes.
Case Study 1: EUR/USD on 5-Minute Chart
During the London session, the Forex Index blue line rose above zero while the Volty Channel line turned blue. A buy trade was entered at 1.1025.
The recent swing low was 1.1018, which led to placing the stop loss at 1.1015 (10 pips risk).
The nearest resistance and previous swing high was at 1.1040, so the take profit was set there, providing a potential gain of 15 pips.
Price moved upward quickly and reached the target, resulting in 15 pips profit.
Case Study 2: USD/JPY on 1-Minute Chart
During the New York session, the Forex Index blue line dropped below zero while the Volty Channel line turned red. A sell order was placed at 145.50.
The recent swing high was 145.62, which required placing the stop loss at 145.65 (15 pips risk).
The next support level was 145.35, so the take profit was set at that level for a 15-pip gain.
Price moved downward and hit the support level, providing 15 pips profit.
Strategy Tips
- Use this strategy on high-liquidity pairs to minimize slippage and spreads.
- Prefer trading during active sessions (London and New York) for better momentum.
- Adjust take profit according to minor support/resistance levels or channel tops/bottoms.
- Avoid trading during major news announcements that can spike volatility.
- Maintain consistent position sizing to manage risk and preserve capital.
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Download the “force-index_mtf.ex4” indicator for Metatrader 4
