About the iWPR+ Forex Oscillator
The iWPR+ Forex Oscillator for MetaTrader 4 is a momentum-based indicator built to identify overbought and oversold market conditions with high accuracy.
It is especially useful for traders who want well-timed entries and exits rather than chasing price after large moves.
The indicator operates using two fixed extreme levels.
When price momentum pushes the oscillator down to the 20 level, the market is considered oversold.
When the oscillator reaches the 80 level, the market is considered overbought.
These zones highlight areas where price is more likely to react or correct.
The iWPR+ Oscillator performs best when combined with trend analysis or price action.
In trending markets, traders focus only on signals that align with the dominant direction.
This approach helps reduce false signals and improves consistency across different currency pairs and timeframes.
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Download the “iWPR+.mq4” MT4 indicator
Key Features
- Identifies overbought and oversold market conditions.
- Uses fixed 20 and 80 extreme levels.
- Suitable for precise trade entries and exits.
- Effective in both trending and ranging markets.
- Easy to combine with trend and price action tools.
Indicator Chart
The chart below shows the iWPR+ Forex Oscillator applied to a currency pair.
The oscillator highlights overbought and oversold zones using the 80 and 20 levels.
Buy and sell opportunities appear when the indicator crosses back from these extreme areas, especially when aligned with the overall trend direction.
Guide to Trade with iWPR+ Forex Oscillator
Buy Rules
- The overall market trend is bullish.
- The iWPR+ value reaches or moves below the 20 level.
- The iWPR+ crosses above the 20 level.
- Price shows rejection or support confirmation.
Sell Rules
- The overall market trend is bearish.
- The iWPR+ value reaches or moves above the 80 level.
- The iWPR+ crosses below the 80 level.
- Price shows rejection or resistance confirmation.
Stop Loss
- Place the stop loss 2 to 3 pips below the recent swing low for buy trades.
- Place the stop loss 2 to 3 pips above the recent swing high for sell trades.
- Alternatively, use a volatility-based stop loss for wider market conditions.
Take Profit
- Target the next key support or resistance level.
- Use a reward-to-risk ratio of at least 2:1.
- In strong trends, trail profits using higher lows or lower highs.
IWPR Forex Oscillator + RSI with CCI Forex Scalping Strategy
This scalping strategy combines the IWPR Forex Oscillator for MT4 with the RSI with CCI Forex Trend Indicator for MT4.
The IWPR Oscillator provides overbought and oversold signals: it generates a buy signal when the line crosses back above 20, and a sell signal when it crosses back below 80.
The RSI with CCI indicator shows trend direction with green histogram bars for bullish momentum and red bars for bearish momentum.
By combining these indicators, traders can identify short-term momentum reversals while confirming the overall trend.
This strategy works best on M5 and M15 charts, ideal for scalpers looking for fast trades in liquid markets.
Buy Entry Rules
- The IWPR Forex Oscillator crosses back above the 20 level, signaling a potential bullish reversal.
- The RSI with CCI histogram is green, confirming the bullish trend.
- Enter a buy trade at the start of the next candle after both signals align.
- Place a stop loss below the recent swing low, typically 10–15 pips on M5 or 15–25 pips on M15 charts.
- Set take profit at 20–30 pips on M5 or 40–60 pips on M15, or exit when either the oscillator drops back below 20 or the histogram turns red.
Sell Entry Rules
- The IWPR Forex Oscillator crosses back below the 80 level, signaling a potential bearish reversal.
- The RSI with CCI histogram is red, confirming the bearish trend.
- Enter a sell trade at the start of the next candle after both signals align.
- Set a stop loss above the recent swing high, typically 10–15 pips on M5 or 15–25 pips on M15 charts.
- Take profit at 20–30 pips on M5 or 40–60 pips on M15, or exit when the oscillator rises back above 80 or the histogram turns green.
Advantages
- Combines reversal signals with trend confirmation, reducing false entries.
- Suitable for multiple currency pairs with sufficient volatility, including EURUSD, GBPUSD, and USDJPY.
- Allows scalpers to take advantage of both trend continuation and short-term pullbacks.
- Minimal lag from the combination of oscillator and trend histogram improves timing for entries and exits.
Drawbacks
- It may produce false signals in sideways or low-volatility markets where the oscillator fluctuates around 20 or 80 levels.
- The strategy requires active monitoring due to rapid price movements on M5 and M15 charts.
- Large news events can create sudden reversals that invalidate the setup.
Case Study 1: EURUSD M5 Trade
During the London session, the IWPR Oscillator crossed back above 20, signaling a buy opportunity.
The RSI with CCI histogram was green, confirming the bullish trend.
A buy entry at 1.1020 with a 12-pip stop loss moved quickly to 1.1060, capturing 40 pips before the oscillator showed early signs of weakening and the histogram turned red.
Case Study 2: GBPUSD M15 Trade
In the New York session, the IWPR Oscillator crossed back below 80, indicating a sell signal.
The RSI with CCI histogram was red, confirming the bearish momentum.
A short at 1.2450 with a 20-pip stop loss declined to 1.2395, providing a 55-pip gain before the oscillator rose near 80 again, and the histogram showed green bars.
Strategy Tips
- Focus on highly liquid pairs during major trading sessions for optimal results.
- Use higher timeframes, like H1, to identify the primary trend and align scalping trades in that direction.
- Always check for upcoming news releases to avoid sudden volatility spikes.
- Adjust take profit and stop loss levels based on market volatility; higher volatility may allow larger targets.
- Keep a trading journal to monitor which pairs and timeframes give the best results with this strategy.
- Consider partial profit-taking if the trade moves quickly in your favor, then trail the remaining position.
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Download the “iWPR+.mq4” Metatrader 4 indicator
FAQ
Is the iWPR+ Oscillator better for scalping or swing trading?
The indicator can be used for both styles. Lower timeframes suit scalping, while higher timeframes work well for intraday and swing trades.
Can the extreme levels be adjusted?
The default 20 and 80 levels are optimized for most market conditions. Some traders adjust them slightly to match volatility or personal preferences.
Why is trend confirmation important with this indicator?
Trading only in the direction of the trend helps filter out countertrend signals that have lower probability and higher risk.
Summary
The iWPR+ Forex Oscillator for MT4 is a reliable tool for identifying high-probability overbought and oversold conditions.
Its fixed extreme levels make it easy to read and suitable for precise market timing.
When combined with trend direction and basic price action, the indicator helps traders avoid weak setups and focus on stronger opportunities.
With disciplined risk management and proper confirmation, the iWPR+ Oscillator can be a valuable addition to any trading strategy.
