The Squeeze Trend Oscillator MT4 indicator is a trend following colored forex oscillator that works.
It oscillates above and below its zero mark. Histograms above the zero mark are considered bullish while below bearish.
Histograms aligned above the zero mark are colored blue while below red.
We will look for long trade opportunities when the Squeeze Trend Oscillator is colored blue.
Conversely, we will look for sell trade opportunities when the Squeeze Trend Oscillator is colored red.
It is recommended to combine the Squeeze Trend Oscillator together with a longer trend following indicator or with price action techniques for more profitable buy and sell signals.
The indicator can be used for scalping, day trading a swing trading.
Free Download
Download the “bbsqueeze-dark.mq4” MT4 indicator
Indicator Chart (EUR/USD D1)
The EUR/USD Daily chart below displays the Squeeze Trend Oscillator Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Squeeze Trend Oscillator MT4 forex indicator are easy to interpret and go as follows:
Buy Signal: Initiate new buy trade position when the histograms of the Squeeze Trend Oscillator turn blue and the overall trend is bullish.
Sell Signal: Initiate new sell trade position when the histograms of the Squeeze Trend Oscillator turn red and the overall trend is bearish.
Trade Exit: Use your own method of trade exit.
BDFX Trender Indicator + Visual MACD MT4 Forex Strategy
This strategy uses the BDFX Trender MT4 histogram as a momentum trigger and the Visual MACD MT4 cloud with dotted lines as a trend filter.
The idea is to enter trades only when momentum from the BDFX Trender and trend direction from the Visual MACD are aligned.
The approach works on intraday timeframes such as 15-minute, 30-minute, and 1-hour charts and is intended for traders who prefer clear signals and controlled risk.
The strategy performs best on currency pairs with decent volatility and where momentum signals tend to carry the price further.
It is more effective when the market is not flat or choppy.
For best results, avoid heavy news periods and use proper risk management.
Buy Entry Rules
- Wait until the BDFX Trender histogram turns blue, indicating bullish momentum above zero.
- Confirm that the Visual MACD cloud shows a bullish trend with a green dotted line.
- Once both conditions are met, enter a buy trade.
- Place a stop loss below the most recent swing low.
- Set take profit at the next resistance level or exit when the histogram turns red.
Sell Entry Rules
- Wait until the BDFX Trender histogram turns red, indicating bearish momentum below zero.
- Confirm that the Visual MACD cloud shows a bearish trend with a red dotted line.
- Once both conditions are met, enter a sell trade.
- Place a stop loss above the most recent swing high.
- Set take profit at the next support level or exit when the histogram turns blue.
Advantages
- Combining momentum from the histogram and trend from the cloud reduces false signals.
- Flexible on multiple timeframes such as 15-minute, 30-minute, and 1-hour charts.
- Stop loss based on recent swing points keeps risk consistent and manageable.
Drawbacks
- It requires constant attention on the chart, making it less suitable for traders who cannot monitor trades frequently.
- Whipsaw movements can trigger stop losses before the trend fully develops, especially in volatile markets.
- Settings may need adjustment for different currency pairs, which can be time-consuming.
Case Study 1
Pair EUR/USD, Timeframe 15-minute chart. BDFX Trender histogram turned blue and the Visual MACD cloud was green.
Entry at 1.0850. Recent swing low was 1.0820, stop loss set at 1.0820 for 30 pips risk.
Price moved to 1.0885 near resistance.
Histogram turned red, trade exited for 35 pips profit.
Case Study 2
Pair GBP/JPY, Timeframe 30-minute chart. The histogram turned red and the Visual MACD cloud was red.
Entry sell at 157.20. Swing high was 157.50, stop loss set at 157.50 for 30 pips risk.
Price dropped to 156.40 near support, trade closed with 80 pips profit as the histogram flipped blue.
Case Study 3
Pair AUD/USD, Timeframe 1-hour chart. The histogram turned blue and the Visual MACD cloud was green.
Entry buy at 0.6650. Recent swing low at 0.6625, stop loss set at 0.6625 for 25 pips risk.
Price moved to 0.6680.
Visual MACD cloud and histogram signaled a trend change, trade closed with 30 pips profit.
Strategy Tips
- Select pairs with moderate to high volatility and avoid low volume or erratic pairs.
- Adjust stop loss according to pair volatility. A static pip value may not suit all pairs.
- Consider partial profit taking. Close part of the position and move the stop loss to break even if the trade moves favorably.
- Backtest on historical data across several pairs and timeframes to find optimal settings for your style and risk tolerance.
By combining momentum signals from the BDFX Trender histogram with trend direction from the Visual MACD cloud, this strategy filters out noise and focuses on high probability moves.
Proper risk management allows traders to capture intraday opportunities effectively.
Download Now
Download the “bbsqueeze-dark.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (bol Prd, bol Dev) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend oscillator
