FX Forecaster Indicator

FX Forecaster Indicator

We will talk about the FX Forecaster indicator for MT4 platforms. Using the indicator as buy and sell signals are included here.

The FX Forecaster indicator for MT4 is based on the popular MACD technical indicator. It is also shown as a histogram with the colors purple and black. It’s a great oscillator to help you trade short-term price movements. Thus, it’s best used by intraday traders and scalpers who want to catch profitable, short-term movements in the markets.

Bullish Or Buy Signal
The FX Forecaster indicator for MT4 indicates a buy signal when both the purple and black histograms are above the zero level.

To use the indicator for a long trade, you first have to determine a breakout upwards of an important resistance level. Once the price breaks out, you have to check whether both purple and black histograms are above the zero level. Then, you can enter the position. You will exit the position once part of the histogram (whether black or purple) goes below the zero level. You can view this in the charts below.

Bearish Or Sell Signal
This indicator indicates a sell signal when both the purple and black histograms are below the zero level.

To use the indicator for a short, you first have to determine a breakout downwards of an important support level. Once the price breaks down, you have to check whether both purple and black histograms are below the zero level. Then, you can enter the position. You will exit the position once part of the histogram (whether black or purple) goes above the zero level. Check out the chart below.

Conclusion
The FX Forecaster indicator for MT4 can help you detect a trend in the markets. As such, you can use it to time your entry and exit positions while trading any instrument. In addition, you can utilize it in combination with support and resistance lines to make your trades more profitable and to manage risk.