The Overbought & Oversold Forex indicator for MT4 identifies overbought and oversold market conditions for any currency pair.
The indicator appears as a red colored line that oscillates between 0 and 70 in a bottom chart window.
Key points:
- The 0 indicator reading is considered oversold.
- The 70 indicator reading is considered overbought.
The indicator can be used in various ways. I will present you an example below:
Buy & sell trade idea:
- A buy trade should be executed as soon as the indicator reaches the 0 oversold territory and the underlying trend is upwards.
- A sell trade should be executed as soon as the indicator reaches the 70 overbought territory and the underlying trend is downwards.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download:
Download the “Overbought_Oversold.mq4” indicator for MT4
Indicator Example Chart (EUR/USD M30)
The picture below shows the Overbought & Oversold mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the Overbought & Oversold Forex 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: Overbought/oversold
Does the indicator repaint? No.
Download Now:
Download the “Overbought_Oversold.mq4” indicator for Metatrader 4
How to install this indicator on Metatrader 4?
Open the Metatrader 4 platform
From the top menu, click on “File”
Then click on “Open Data Folder”
Then double click with your mouse button on “MQL4”
Now double click on “Indicators”
Paste the Overbought_Oversold.mq4 indicator in the Indicators folder.
Finally restart the MT4 platform and attach the indicator to any chart.
How to remove the indicator?
Click with your right mouse button in the chart with the indicator attached onto it.
Select “Indicator List” from the drop down menu.
Select the indicator and press delete.
How to edit the indicator’s inputs and parameters?
Right click with your mouse button in the chart with the indicator attached onto it.
From the drop down menu, click on indicators list.
Select the indicator from the list and press edit.
Now you can edit the indicator.
Finally, press the OK button to save the updated configuration.