Forex Trend Filter AO is a free MT4 (Metatrader 4) indicator that can help to find precise trade entries and exits in both trending and sideways markets.
The indicator pops up in a separate MT4 chart window as a colored green & red bar histogram.
For scalping, the indicator tends to work the best during the London and U.S. trading sessions.
The Forex Trend Filter AO 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 “Filter_AO.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The example chart below displays the Forex Trend Filter AO 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 Forex Trend Filter AO 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 Using the Forex Trend Filter AO Indicator and Alfa Sniper Trend Indicator
This MT4 scalping strategy combines the power of the Forex Trend Filter AO Indicator with the precision entry signals of the Alfa Sniper Trend Forex Indicator.
By blending a momentum-based filter with a directional arrow signal, traders can enter trades during high-probability trend phases.
This approach is designed for active traders who prefer 1-minute to 15-minute charts, making it especially suited for forex scalping.
It works well for traders looking to take advantage of intraday price swings while keeping stop losses tight and profits consistent.
How the Strategy Works
The Forex Trend Filter AO indicator identifies when momentum shifts from bearish to bullish or vice versa.
A buy signal occurs when the histogram bar crosses the 0.00 level from below to above.
A sell signal occurs when the histogram bar crosses the 0.00 level from above to below.
The Alfa Sniper Trend Indicator confirms this shift with its blue arrows for buy setups and red arrows for sell setups.
Combining these two indicators creates a robust filtering and confirmation system.
Buy Entry Rules
- Wait for the Forex Trend Filter AO histogram to cross above the 0.00 level from below.
- Confirm the buy setup when a blue arrow appears from the Alfa Sniper Trend Indicator.
- Enter a buy trade at the close of the candle where both conditions align.
- Set the stop loss 8–12 pips below the most recent swing low.
- Take profit at 15–25 pips or at the next key resistance level.
Sell Entry Rules
- Wait for the Forex Trend Filter AO histogram to cross below the 0.00 level from above.
- Confirm the sell setup when a red arrow appears from the Alfa Sniper Trend Indicator.
- Enter a sell trade at the close of the candle where both conditions align.
- Set the stop loss 8–12 pips above the most recent swing high.
- Take profit at 15–25 pips or at the next key support level.
Advantages
- Combines momentum and signal confirmation to reduce false entries.
- Works well on lower time frames such as M1, M5, and M15 for quick scalping.
- Clear and easy-to-read signals without complex calculations.
- Allows tight stop losses to manage risk effectively.
Drawbacks
- May produce fewer signals during flat or sideways markets.
- Requires discipline to wait for both conditions before entry.
- Performance can vary across different currency pairs and market sessions.
Case Study 1: EUR/USD 5-Minute Chart
On a recent EUR/USD 5-minute chart, the Forex Trend Filter AO crossed above the 0.00 level at 1.0850 while the Alfa Sniper Trend Indicator printed a blue arrow.
A buy order was placed at 1.0852 with a stop loss at 1.0840.
The trade reached the take profit at 1.0878 for a gain of 26 pips within 20 minutes.
This quick scalp captured a short-term breakout move with minimal drawdown.
Case Study 2: GBP/JPY 1-Minute Chart
During the London session, GBP/JPY showed strong downward momentum.
The Forex Trend Filter AO crossed below 0.00 at 189.40, and a red arrow appeared on the Alfa Sniper Trend Indicator.
A sell trade was executed at 189.38 with a stop loss at 189.50.
Within 15 minutes, the price dropped to 189.10, and the trade closed at the take profit target of 28 pips.
This example illustrates how combining both indicators can yield fast, profitable trades even in volatile pairs.
Strategy Tips
- Focus on major currency pairs during active sessions (London and New York) for better volatility.
- Adjust stop loss and take profit levels according to the pair’s average spread and volatility.
- Avoid trading immediately before high-impact news releases to reduce slippage and false signals.
- Test the strategy on a demo account first to fine-tune risk settings and pair selection.
