The Tops & Bottoms Forecasting forex indicator for MT4 predicts possible tops and bottoms on all timeframes and currency pairs.
The indicator works on Jurik and Laguerre and fluctuates between 1.1 and -1.1 values.
A smoothing factor was added to help reduce the number of false top & bottom reversal signals.
- Red histogram bars represent a possible top.
- Green histogram bars represent a possible bottom.
It’s highly recommended to use this indicator together with a longer-term trend following indicator and only pick tops and bottoms in the direction of the trend.
For example, when the trend is up, only trade the bottom signals and ignore the top reversal signals.
Likewise, when the trend is down, only trade the top signals and ignore the bottom reversal signals.
Feel free to use this indicator together with other technical indicators (oscillators, momentum) or price action methods.
Free Download
Download the “Jma Ppo.ex4” MT4 indicator
Indicator Chart (EUR/USD M15)
The EUR/USD M15 chart below displays the Tops & Bottoms Forecasting Metatrader 4 forex indicator in action.
Basic Trading Signals
Signals from the Tops & Bottoms Forecasting MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy order when the Tops & Bottoms Forecasting indicator draws the first green histogram bar.
Place a stop loss below short-term support or use your own preferred SL method.
Sell Signal: Open sell order when the Tops & Bottoms Forecasting indicator draws the first red histogram bar.
Place a stop loss above short-term resistance or use your own preferred SL method.
Tops/Bottoms Forecasting + Simple Linear Regression Forex Scalping Strategy
This scalping strategy uses two indicators: the Tops/Bottoms Forecasting and the Simple Linear Regression indicator.
The Tops/Bottoms Forecasting indicator shows a green histogram to indicate a possible bottom and potential trend reversal for buying, and a red histogram for possible tops signaling a sell.
The Simple Linear Regression indicator draws a channel: an upward-sloping channel indicates a bullish trend, while a downward-sloping channel indicates a bearish trend.
This strategy is designed for fast timeframes like M1 and M5, ideal for scalpers looking for quick trades in the direction of the short-term trend with reversal confirmation.
Buy Entry Rules
- The Simple Linear Regression channel is sloping upward, indicating a bullish trend.
- The Tops/Bottoms Forecasting histogram turns green, signaling a possible bottom.
- Enter a buy trade when both conditions are satisfied.
- Set the stop loss 3–8 pips below the most recent swing low or the bottom edge of the regression channel.
- Set a take profit of 10–20 pips on M1 or 15–30 pips on M5, or use a trailing stop to capture extended moves.
Sell Entry Rules
- The Simple Linear Regression channel is sloping downward, indicating a bearish trend.
- The Tops/Bottoms Forecasting histogram turns red, signaling a possible top.
- Enter a sell trade when both conditions align.
- Set the stop loss 3–8 pips above the most recent swing high or the top of the regression channel.
- Set a take profit of 10–20 pips on M1 or 15–30 pips on M5, or use a trailing stop.
Advantages
- Combines trend direction with reversal signals for more precise entries.
- Histogram colors and channel slope make signals easy to read.
- Fast execution for scalping on lower timeframes.
- Flexible exits: fixed profit targets or trailing stops.
- Can be applied to multiple currency pairs during active sessions.
Drawbacks
- Requires quick reactions due to fast M1/M5 timeframes.
- The channel may lag slightly, leading to late entries or missed trades.
Case Study 1 — EUR/USD on M1
On the EUR/USD M1 chart, the Simple Linear Regression channel sloped upward, indicating a bullish trend.
A green histogram appeared on the Tops/Bottoms Forecasting indicator, signaling a possible bottom.
A buy trade was entered with a stop loss 8 pips below the recent swing low and a take profit of 15 pips.
Price moved higher and hit the take profit target within a few minutes, capturing the scalp successfully.
Case Study 2 — GBP/JPY on M5
On the GBP/JPY M5 chart, the regression channel sloped downward, showing bearish momentum.
The Tops/Bottoms Forecasting histogram turned red, indicating a potential top.
A sell order was placed with the stop loss 10 pips above the recent swing high and a take profit of 25 pips.
Price continued lower, and the trade closed at the target.
Strategy Tips
- Use a broker with low spreads and fast execution for scalping.
- Wait for both the histogram and channel confirmation before entering.
- Consider using a trailing stop to protect profits on extended moves.
- Test the strategy on different currency pairs to adjust stop-loss and take-profit levels according to volatility.
Download Now
Download the “Jma Ppo.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (look back period, fast jma period, slow jma period, jma phase, price, lower percent to use, higher percent to use, bars width for display)Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Type: tops & bottoms
