About the FX5 Neely Elliott Wave V 1.2 Indicator
The FX5 Neely Elliott Wave V 1.2 indicator for MT4 is designed for traders who use Elliott Wave theory as part of their technical analysis.
It applies the Neely methodology, which refines traditional wave counting by relying on objective rules and price progression rather than subjective interpretation.
After adding the indicator to a chart, it automatically plots Elliott Waves across four time perspectives.
Monthly, weekly, daily, and quarter-daily waves are displayed together, allowing traders to see how short-term price movements fit within broader market cycles.
This approach supports better decision-making when aligning trades with dominant wave direction.
The indicator uses a monowave principle, meaning waves continue to form until price direction truly changes.
This helps reduce unnecessary recalculations and keeps wave counts stable.
Each wave level is color-coded and can be enabled or disabled through the input settings, making the indicator flexible for different trading styles.
Free Download
Download the “FX5_NeelyElliotWave_v1_2.mq4” MT4 indicator
Key Features
- Built on the Neely Elliott Wave methodology.
- Plots four Elliott Wave levels on a single chart.
- Monthly waves are shown in blue-violet.
- Weekly waves are shown in green.
- Daily waves are shown in blue.
- Quarter-daily waves are shown in yellow.
- Confirmed waves do not repaint.
- Works on all currency pairs and timeframes.
Indicator Chart
Example chart displaying the FX5 Neely Elliott Wave V 1.2 indicator on a forex pair.
The chart highlights multiple Elliott Wave counts layered across timeframes.
Traders can observe potential buy and sell areas by tracking how lower-timeframe waves develop within higher-timeframe wave phases.
This perspective helps improve timing and trend alignment.
Guide to Trade with FX5 Neely Elliott Wave V 1.2
Buy Rules.
- Confirm the monthly or weekly wave is moving upward.
- Wait for a corrective wave to complete on the daily or quarter-daily level.
- Enter a buy trade when price resumes movement in the main wave direction.
Sell Rules.
- Confirm the monthly or weekly wave is moving downward.
- Identify a completed corrective move against the dominant trend.
- Enter a sell trade as price continues in the prevailing wave direction.
Stop Loss.
- Place the stop loss below the last confirmed wave low for buy trades.
- Place the stop loss above the last confirmed wave high for sell trades.
Take Profit.
- Target the projected end of the active impulse wave.
- Consider partial exits at prior wave highs or lows.
Neely Elliott Wave + Zero Lag Moving Average Forex Day Trading Strategy for MT4
This strategy uses the FX5 Neely Elliott Wave V1.2 indicator for MT4, which Elliott Wave counts on your chart.
We combine it with the Zero Lag Moving Average indicator for MT4, which gives clear buy/sell signals when the price is above or below its red MA line.
This approach is intended for day trading on forex pairs with good liquidity and intraday momentum (for example, USDJPY, AUDUSD, EURCAD), on timeframes such as M15 or H1.
It works well for traders who like defined entry rules, trend confirmation, and prefer to trade inside a single trading session rather than holding overnight.
Buy Entry Rules
- Ensure the Neely Elliott Wave indicator shows a corrective wave ending or a new impulse wave beginning on the daily or quarter-daily time frame. In other words, you’re identifying that the wave count suggests the start of a new upward move.
- Switch to your preferred day-trading timeframe (M15 or H1) and check that the Zero Lag Moving Average has price closing above the red moving average line, i.e., a confirmed bullish trend signal.
- Enter a buy trade at the close of the M15/H1 candle that confirms the price above the MA after the wave count signal aligns with the potential upward leg start.
- Place your stop loss just below the recent swing low, ideally 10-20 pips depending on pair and timeframe.
- Set your take profit target at the next major wave high indicated by the Elliott wave count, or use a risk-reward ratio of at least 1:2.
- Exit early if the Zero Lag MA is breached from above (price closes below the red line) or if the wave count shows a completed upward leg and reversal signal.
Sell Entry Rules
- Ensure the Neely Elliott Wave indicator signals the end of an upward wave and the start of a corrective or impulse downward wave on the daily/quarter-daily time frame.
- On your M15/H1 chart, confirm the Zero Lag Moving Average is giving a trend signal: price closing below the red MA line indicates bearish bias.
- Enter a sell trade at the close of the candle that confirms the price below the MA after the wave count aligns with the start of a downward leg.
- Place your stop loss just above the recent swing high, ideally 10-20 pips depending on pair and timeframe.
- Set your take profit at the next major wave low indicated by the Elliott wave count, or target a risk-reward of at least 1:2.
- Exit early if price closes above the red MA (trend invalidated) or if the wave count indicates the downward leg is complete.
Advantages
- Combines higher-timeframe structure (via Elliott waves) with intraday trend clarity (via zero lag MA).
- Gets you into moves early when a new wave leg begins—but with confirmation from price action and trend indicator.
- Works well in actively trending sessions, giving clear entries and defined stop/targets.
- The zero lag MA reduces lag compared with standard MAs, making the signals more responsive. :contentReference[oaicite:3]{index=3}
Drawbacks
- In choppy or sideways market conditions, wave counts may be ambiguous and trend signals may whipsaw, leading to false entries.
- You still need to interpret the Elliott wave counts—this may require some experience or discipline to avoid misreading the structure.
- Because it’s a day trading strategy, you may need to monitor charts actively—less suitable for set-and-forget traders.
Example Case Study 1: USDJPY M15 Day Trade
On a Monday morning session, USDJPY showed the Neely Elliott Wave indicator completing a corrective wave and starting a new impulse up on the daily/quarter-daily count.
On the M15 chart, the Zero Lag MA signal appeared: price closed above the red MA line.
A buy entry was taken at 154.10, stop loss at 153.90 (20 pips), target at 154.50 (40 pips).
The trade ran smoothly during the London session and reached the target by midday, capturing 40 pips.
Example Case Study 2: AUDUSD H1 Session
During the New York morning, AUDUSD showed the wave count signalling the end of an impulse upward leg and the start of a corrective downward wave.
On the H1 chart, the price closed below the red Zero Lag MA line, confirming bearish bias.
A sell trade was entered at 0.6740 with a stop loss at 0.6755 (15 pips) and a take profit at 0.6700 (40 pips).
The pair moved lower through the afternoon session, hitting the target with a 40-pip profit.
The strategy worked because the higher-timeframe wave signal and intraday trend filter worked together.
Strategy Tips
- Prefer to trade during major sessions (London open, New York open) for stronger momentum and clearer wave legs.
- Ensure spread and costs are low for the pair you trade—intraday stops and targets are relatively tight.
- If you see the Zero Lag MA changing direction rapidly or wave counts overlapping, consider skipping the trade—better to wait for clear alignment.
Download Now
Download the “FX5_NeelyElliotWave_v1_2.mq4” MT4 indicator
FAQ
How does the indicator determine wave changes?
The indicator follows a monowave approach, where waves continue until price direction clearly shifts.
This reduces frequent wave changes during minor pullbacks.
Can individual wave levels be turned off?
Yes. Each wave level can be enabled or disabled from the indicator inputs, allowing traders to focus on specific timeframes.
Does the FX5 Neely Elliott Wave V 1.2 repaint?
No. Once a wave is confirmed, it remains fixed on the chart, making historical analysis more reliable.
What trading style works best with this indicator?
This indicator is best suited for traders who already understand Elliott Wave theory and prefer multi-timeframe analysis when planning entries and exits.
Summary
The FX5 Neely Elliott Wave V 1.2 indicator offers a professional approach to Elliott Wave analysis on MT4.
By applying the Neely methodology, it provides consistent wave plotting across multiple timeframes without repainting confirmed data.
Its ability to combine monthly, weekly, daily, and quarter-daily waves on one chart helps traders stay aligned with broader market cycles.
With flexible settings and solid analytical depth, it serves as a practical tool for wave-based forex trading.
