The Wavy Dash Forex signals indicator for MT4 transforms price data into an excellent trend-following signals indicator that works for trade entry and exit.
The indicator appears in the main chart as a colored signal line and can be used as a standalone trading tool.
The Wavy Dash indicator is very reliable, lightweight, and will not slow down your trading platform.
Key Points
- Trend signal indicator
- Newbie friendly
- Works on any time frame
- Non-repaint
- Well worth adding to your indicator collection
This indicator can work together with any existing trading strategy or system as a possible trend reversal confirmation tool.
Free Download
Download the “WavyDash.mq4” MT4 indicator
Indicator Example Chart
The EUR/USD 5-minute chart below shows the Wavy Dash Forex indicator in action.
Basic Trading Signals From the Wavy Dash Indicator
Signals from the Wavy Dash Forex indicator for Metatrader 4 are easy to interpret and go as follows:
BUY:
- A new buy signal is given when the green colored signal line starts painting on the chart.
- Place a stop loss below support.
- Exit the buy trade for a predetermined profit target or wait for a sell signal.
SELL:
- A new sell signal is given when the red colored signal line starts painting on the chart.
- Place a stop loss above resistance.
- Exit the sell trade for a predetermined profit target or wait for a buy signal.
Download Now
Download the “WavyDash.mq4” MT4 indicator
Wavy Dash Signals + Zero Lag Stochastic Momentum Strategy
This strategy combines the clear entry/exit signals from the Wavy Dash Forex Signals Indicator with the fast-reacting momentum readings of the Zero Lag Stochastic Indicator.
Together, they provide timely and reliable trade setups for both trending and ranging markets.
How the Strategy Works
- Wavy Dash Signals produce clear buy and sell arrows based on price action and trend strength.
- Zero Lag Stochastic offers fast and smooth stochastic readings to identify overbought/oversold conditions without lag.
Recommended Timeframes and Pairs
- Timeframes: M15, M30, H1
- Pairs: EUR/USD, USD/JPY, GBP/USD, AUD/USD
Buy Entry Rules
- Wait for a buy arrow signal from the Wavy Dash Indicator.
- Confirm that the Zero Lag Stochastic is coming out of the oversold region (below 20) and crossing upward.
- Enter a buy trade at the close of the signal candle.
- Place a stop loss below the recent swing low.
- Set a take profit at previous resistance levels or a 2:1 reward-to-risk ratio.
Sell Entry Rules
- Wait for a sell arrow signal from the Wavy Dash Indicator.
- Confirm that the Zero Lag Stochastic is coming out of the overbought region (above 80) and crossing downward.
- Enter a sell trade at the close of the signal candle.
- Place a stop loss above the recent swing high.
- Target previous support or use a 2:1 reward-to-risk ratio for exit.
Additional Tips
- Avoid trading when the stochastic is stuck in extreme zones for prolonged periods.
- This strategy works well during trending markets but can also identify strong reversal points.
- Use a higher timeframe trend context to filter trades (e.g., trade only buys in an uptrend).
Adjustable Parameters & Settings
Back, colors, style
Feel free to explore the indicator’s different parameters and settings to create your own personalized indicator setup.
More Info About This Indicator
Currency Pairs: works on any currency pair
Trading Platform: developed for Metatrader 4 (MT4)
Time Frames: any
Indicator Type: trend signal
How to install the Wavy Dash Forex Signals indicator in Metatrader 4?
- Copy and paste the WavyDash.mq4 indicator into the MQL4 indicators folder.
- You can access this folder from the top menu as follows:
- File > Open Data Folder > MQL4 > Indicators (paste here)
