Overbought Oversold Indicator

Overbought Oversold Indicator

The overbought oversold indicator for MT4 is no doubt a tool that would help you to trade the exhaustion region with high precision.

The Overbought Oversold indicator for MetaTrader is the best indicator to spot trend exhaustion zones otherwise known as the overbought/oversold (OB/OS) zones. It automatically identifies significant regions where the trend is likely to reverse.

This MT4 indicator does the technical analysis and displays the outcome as a histogram bar. The indicator also comes with a BUY/SELL arrow to help filter false overbought/oversold signals.

The innovative BUY/SELL arrow feature is very important in picking successful trades because not all exhaustion zones are tradable. The BUY/SELL arrow helps to confirm that an overbought/oversold region has a high probability of reversing.

As a result, you can know when to open a trade position or cut your losses when an opposite arrow is displayed for instance. This infers that the overbought oversold indicator for M4 would be valuable to both novice and experienced traders.

Overbought Oversold Indicator BUY/SELL Signals

The above chart shows how the Overbought and Oversold indicator for MT4 looks on a trading dashboard. The indicator is made up of the signal arrow and the histogram bars. The former is for ENTRY while the latter is used to watch out for the exhaustion zone.

You may consider going LONG only when the histogram bar is in the oversold zone and a BUY arrow has appeared. Similarly, you may consider going SHORT only when the histogram bar is hovering around the overbought region and a SELL arrow has appeared.

Do not just BUY/SELL on all OB/OS zones – it is dangerous. The market may continue going in that direction till your Stop Loss is triggered. Additionally, the OB/OS indicator is most reliable on higher time frames and is suitable for intraday and swing traders.

Furthermore, this MT4 indicator can be used as a stand-alone tool to trade the forex market. It can also be used in sync with other trading tools and strategies for further confirmation of trading setups.

Conclusion
The overbought-oversold indicator for MT4 is no doubt a tool that would help you to trade the exhaustion region with high precision. The BUY/SELL signal arrow of this indicator also plays an important role in picking successful trades. What’s more, the indicator is available free to download, so check it out.