The Forex Signals Trader indicator for MT4 is a channel-based buy and sell arrow signals indicator.
The indicator is built to take advantage of short-term market movements. So, use it for scalping or day trading purposes.
- A green arrow represents a buy signal, and it’s always drawn near the bottom of the channel.
- A red arrow represents a sell signa,l and it’s always drawn near the top of the channel.
It’s a wise idea to confirm the buy/sell trade with other forex indicators or with price action.
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Download the “forex-signals.mq4” MT4 indicator
Indicator Chart (EUR/USD H1)
The EUR/USD 1-Hour chart below displays the Forex Prediction Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Forex Signals Trader MT4 indicator are easy to interpret and go as follows:
Buy Signal: Open a new buy trade when a green arrow appears on the chart. This is a bullish signal. Place a protective stop-loss below the channel and take profit at the upper channel line.
Sell Signal: Open a new sell trade when a red arrow appears on the chart. This is a bearish signal. Place a protective stop-loss above the channel and take profit at the lower channel line.
Forex Signals Trader + Best Forex Scalping Forex Strategy for MT4
This scalping strategy combines the Forex Signals Trader MT4 Indicator and the Best Forex Scalping MT4 Indicator to capture fast intraday moves.
The Forex Signals Trader displays a sloping channel to indicate trend direction, while the Best Forex Scalping indicator shows blue arrows for buy signals and red arrows for sell signals.
Using them together helps traders confirm trends and time entries accurately on M1 and M5 charts.
This strategy is ideal for active scalpers looking to exploit small moves in major and liquid currency pairs during high-liquidity sessions.
Buy Entry Rules
- Check the Forex Signals Trader indicator: the channel must slope upward, indicating a buy trend.
- Wait for the Best Forex Scalping indicator to draw a blue arrow that signals a potential entry after a retracement inside the trend channel.
- Enter a buy trade at the open of the next candle after the arrow appears.
- Set stop-loss a few pips below the most recent swing low or below the lower boundary of the channel.
- Set take profit with one of these rules:
- Fixed small target: 5–10 pips on M1, 10–15 pips on M5
- Or target a recent minor resistance level (based on prior highs on M5 or M15)
- Optionally, use a trailing stop just below new swing lows if the price continues upward, to ride the trend longer.
Sell Entry Rules
- Check the Forex Signals Trader indicator: the channel must slope downward, indicating a sell trend.
- Wait for the Best Forex Scalping indicator to draw a red arrow that signals a possible short entry after a retracement inside the downward channel.
- Enter a sell trade at the open of the next candle after the arrow appears.
- Set stop-loss a few pips above the most recent swing high or above the upper boundary of the channel.
- Set take profit with one of these rules:
- Fixed small target: 5–10 pips on M1, 10–15 pips on M5
- Or target a recent minor support level (based on prior lows on M5 or M15)
- Optionally, use a trailing stop just above new swing highs if the price continues downward.
Advantages
- Clear trend and entry signals with channel slope and arrows
- Fast scalping on M1 and M5 charts allows multiple opportunities per session
- Flexible take profit methods adapt to market conditions
- Works on major currency pairs with good liquidity
Drawbacks
- High sensitivity to spreads and execution speed, especially on M1 charts
- Frequent trades can cause stress and require quick decision-making
- Flat or ranging markets can produce false signals
- Requires strict discipline and proper risk management to avoid losses
Example Case Studies
Case Study 1: USDJPY M1 Chart
During the London session, the Forex Signals Trader channel sloped downward.
The Best Forex Scalping indicator drew a red arrow after a small retracement.
A sell trade was opened at 149.85.
The stop loss was placed at 149.95, and the take profit was set at 149.70.
The trade closed after two minutes with a gain of 15 pips.
This shows how the strategy works for fast scalping on M1 charts.
Case Study 2: EURGBP M5 Chart
On the EURGBP M5 chart, the Forex Signals Trader channel sloped upward.
After a minor pullback, a blue arrow appeared on the Best Forex Scalping indicator.
A buy trade was opened at 0.88420 with a stop loss at 0.88380.
Take profit was set near a recent resistance level at 0.88500.
The trade reached the target in seven minutes, gaining 30 pips.
Strategy Tips
- Focus on currency pairs with tight spreads to maximize profits on small price movements
- Use a one-minute chart for precise entry timing and a five-minute chart to confirm the trend
- Wait for the price to retrace slightly before entering after a blue or red arrow to reduce risk
- Combine this strategy with basic support and resistance levels to find stronger exit points
- Consider the market session and volatility; avoid scalping during quiet periods with low activity
- Keep a trading journal to track patterns and the performance of different pairs and times
Download Now
Download the “forex-signals.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (signal gap, show bars) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend
