About the Simple Decycler Indicator
The Simple Decycler Indicator for MT5, developed by John F. Ehlers, is a trend analysis tool based on his “Decyclers” article in *Technical Analysis of Stocks & Commodities* (September 2015).
The indicator uses three distinct lines—red (top), blue (middle), and green (bottom)—to highlight market direction and potential trade opportunities.
When price is above the red top line, the market is considered bullish; when below the green bottom line, it is bearish.
Price between the lines signals a range-bound condition.
Traders can use the blue middle line as a decision point: a close above it signals a buy opportunity, while a close below it signals a sell.
Exits are triggered when price crosses back over the middle line against the trade direction.
The Simple Decycler is non-repainting, reliable, and works on all currency pairs and timeframes.
It helps traders identify trend continuation, reversals, and range-bound behavior, making it suitable for scalping, intraday, and swing trading.
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Key Features
- Three lines (red, blue, green) indicate bullish, bearish, and range-bound conditions.
- The blue line serves as a decision point for buy and sell trades.
- Non-repainting for reliable trade signals.
- Highlights support and resistance during range-bound markets.
- Adapts to trending conditions where price can extend beyond upper and lower boundaries.
Indicator Chart
The Simple Decycler Indicator plots three colored lines on the main chart.
Price above the red line shows bullish conditions, below the green line shows bearish conditions, and between the lines indicates a range.
The chart illustrates buy and sell signals triggered by crosses above or below the blue middle line.
Guide to Trade with the Simple Decycler Indicator
Buy Rules
- Wait for the price to open and close above the blue middle line.
- Confirm that price is trending upward or momentum is bullish.
- Check that other trend-confirming signals, if used, align.
- Open a buy trade once conditions are confirmed.
Sell Rules
- Wait for price to open and close below the blue middle line.
- Confirm that price is trending downward or momentum is bearish.
- Check that other trend-confirming signals, if used, align.
- Open a sell trade once conditions are confirmed.
Stop Loss
- Place stop losses below recent swing lows for buy trades.
- Place stop losses above recent swing highs for sell trades.
- Optionally use the green bottom line for buy stops and the red top line for sell stops during range-bound markets.
Take Profit
- Close buy trades if price closes below the blue middle line or hits the upper boundary during trending moves.
- Close sell trades if price closes above the blue middle line or hits the lower boundary during trending moves.
- Consider trailing profits to follow strong trends beyond the indicator boundaries.
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FAQ
How does the Simple Decycler Indicator determine trends?
It uses three lines: red for bullish, green for bearish, and blue as a decision point.
Price relative to these lines indicates market conditions and guides entries and exits.
Can the indicator be used during range-bound markets?
Yes. Price tends to bounce off the upper and lower lines, providing support and resistance levels for potential trades.
Does the indicator repaint?
No. Signals remain fixed, allowing traders to rely on the crosses above or below the middle line for trade decisions.
Summary
The Simple Decycler Indicator is a versatile tool that highlights bullish, bearish, and range-bound conditions using three colored lines.
Its clear decision line simplifies trade entries, exits, and trend analysis.
Using it alongside well-placed stop losses, take profit levels, and trend confirmation improves trade precision and helps manage risk effectively.
