Overlay Chart Indicator

Overlay Chart Indicator

Forex BUY and SELL signals from the best Overlay Chart Indicator. Compare the price action of two forex pairs.

The Overlay Chart Indicator is a simple MT4 indicator that compares the price action of the two forex pairs. The indicator plots two prices simultaneously to compare the price action of two forex pairs. Along with the price action, the indicator also mentions the high, low, open, and close of the pair it has overlaid.

You can take positions on both pairs by comparing the two price actions. The indicator works on the principle of forex correlation. In forex, a currency correlation is a positive or negative link between two currency pairs. A positive correlation indicates that two currency pairings are moving in the same direction, whereas a negative correlation indicates that they are moving in opposing directions.

If two pairs are correlated, the Overlay Chart Indicator will apply them simultaneously. Although you can use the Overlay Chart Indicator on every timeframe, applying it on longer timeframes is best.

Overlay Chart Indicator BUY/SELL signals

The above chart shows the BUY and SELL signals with the indicator. Here USD/CAD is the original pair, while USD/JPY is the overlaid pair. To determine the BUY and SELL signals, traders need to follow the price action. The overlaid pair has green and orange bars to illustrate bullish and bearish signals. The green bars mark the bullish trend, while the orange bars highlight the bearish trend.

As for the original pair, traders need to follow the price action and take their positions accordingly. The indicator works best, but it’s hard to determine the course of the price. So, you need to apply other technical indicators like the RSI or MACD to apply proper entry and exit points.

What is an overlay in technical analysis?

The overlay analysis includes placing a price action over the current price action. So, traders can compare two price actions simultaneously. Overlay technical analysis is done through indicators like the Overlay Chart Indicator.

What are overlay indicators?

Overlays indicators plot price action over the current price and thus overlay them. By overlaying the indicators works side by side with the original price action, and thus traders can take their positions accordingly.

Conclusion
The Overlay Chart Indicator places another pair’s price action on top of the original price action. By comparing two price actions, traders can take their positions accordingly. Besides, you can download the indicator for free on our website.