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
Final Thoughts
The Wavy Dash Forex Signals Indicator for MetaTrader 4 is a user-friendly tool designed to assist traders in identifying trend directions and potential reversal points.
Displaying a colored signal line directly on the main chart provides clear visual cues for trade entries and exits.
This indicator is non-repainting, ensuring that once a signal is generated, it remains valid, which is crucial for making informed trading decisions.
Its lightweight design ensures that it won’t slow down your trading platform, making it suitable for use across various timeframes and currency pairs.
While the Wavy Dash Indicator can function effectively as a standalone tool, combining it with other indicators, such as the Forex Momentum Winner Indicator, can enhance its effectiveness by confirming momentum and trend strength.