The YangTrader indicator for Metatrader 4 is an interesting technical oscillator that identifies overbought & oversold levels on the trading chart.
The indicator pops up in a separate MT4 chart window as a blue line that uses the 15 and 80 extreme borders.
It’s a very reliable technical oscillator, lightweight, and will not slow down your trading platform.
Buy & Sell Trade Example
- Initiate a buy trade as soon as the blue line crosses back above the 15 oversold level and the trend is upwards.
- Initiate a sell trade as soon as the blue line crosses back below the 80 overbought level and the trend is downwards.
Combine the YangTrader indicator with a trend-following trading strategy to define the direction of the major trend.
Free Download
Download the “YangTrader.mq4” indicator for MT4
Indicator Chart (GBP/CHF H1)
The example chart below displays the YangTrader mt4 indicator in action on the trading chart.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Oscillator
YangTrader + XP Moving Average MT4 Forex Day Trading Strategy
This day trading strategy combines the YangTrader Forex Indicator for MT4 with the XP Moving Average Indicator for MT4.
It is designed for active intraday trading on M5 and M15 charts, allowing traders to capture short-term moves with a clear trend and momentum confirmation.
The YangTrader indicator signals overbought and oversold conditions through a blue line, while the XP Moving Average confirms the prevailing trend with green and red histogram bars.
How This Strategy Works
The YangTrader indicator identifies potential reversals: a cross above the 15 level signals bullish recovery from oversold conditions, while a cross below 80 signals a bearish reaction from overbought conditions.
The XP Moving Average acts as a trend filter: green histogram bars indicate an uptrend, while red bars indicate a downtrend.
Trades are taken only when both indicators align, filtering out low-probability setups and increasing the chances of capturing consistent intraday gains.
Buy Entry Rules
- Wait for the YangTrader blue line to cross back above the 15 oversold level.
- Confirm that the XP Moving Average histogram is green, indicating an upward trend.
- Enter a buy trade at the close of the confirmation candle.
- Place a stop loss below the most recent swing low, typically 8–15 pips for M5 charts and 15–25 pips for M15 charts.
- Take profit at 1.5–2 times the stop loss distance or when the XP Moving Average turns red.
Sell Entry Rules
- Wait for the YangTrader blue line to cross below the 80 overbought level.
- Confirm that the XP Moving Average histogram is red, indicating a downtrend.
- Enter a sell trade at the close of the confirmation candle.
- Place a stop loss above the most recent swing high, typically 8–15 pips for M5 and 15–25 pips for M15.
- Take profit at 1.5–2 times the stop loss distance or when the XP Moving Average turns green.
Advantages
- Combines momentum and trend confirmation for higher-probability trades.
- Visual indicators make it easy to identify entries and exits on M5 and M15 charts.
- Works well on multiple pairs with moderate volatility, such as EUR/USD, GBP/USD, and AUD/JPY.
- Short holding times reduce exposure to overnight risk.
Drawbacks
- Requires active monitoring due to fast-moving M5 and M15 charts.
- Stop loss and take profit levels may need adjustment depending on pair volatility.
- May miss larger trend moves when waiting for the oversold/overbought confirmation.
Case Study 1 – EUR/USD M5 Chart
On EUR/USD during the London session, the YangTrader blue line crossed above 15 around 1.1005 while the XP Moving Average histogram turned green.
A buy trade was entered at 1.1008 with a stop loss at 1.0995.
Price moved up to 1.1028, capturing +20 pips within 30 minutes.
The trade was closed as the XP Moving Average began turning neutral.
Case Study 2 – AUD/JPY M15 Chart
On AUD/JPY, the YangTrader blue line crossed below 80 at 94.75 while the XP Moving Average histogram was red.
A sell trade was taken at 94.73 with a stop loss at 94.90.
The pair declined to 94.40 within 45 minutes, gaining +33 pips.
The trade was exited when the histogram showed early signs of trend weakening.
Strategy Tips
- Focus on high-liquidity pairs during active trading sessions for faster executions.
- Adjust stop loss levels slightly wider for highly volatile pairs like GBP/JPY.
- Keep trades short and disciplined to match the scalping/day trading style.
This strategy blends oversold/overbought signals with trend confirmation to provide clear, actionable setups for MT4 day traders.
