Wave Trend Oscillator Indicator
Forex trend reversal indicator. Trend following indicator. Overbought and oversold indicator.
The Wave Trend Oscillator indicator for MetaTrader is a forex technical indicator built to follow the trend of the market. It oscillates as price swings between different levels of the chart.
The indicator monitors and tracks the diminishing momentum of the price for potential trend reversal. It is incorporated with a smoothing effect which makes it sensitive to price changes and crossovers of the oscillator.
The indicator also comes with exhaustion terminals otherwise known as the overbought and oversold levels where the price is most likely to reverse. This helps you to anticipate trading setup as price approaches those levels.
The Wave Trend Oscillator indicator is fit for scalping, day, and swing trading. Furthermore, it would come in handy for both novice and experienced traders in providing a tradable point of market interest.
Furthermore, the indicator is also efficient in identifying the presence of divergence for trading divergence setups. This is possible because the indicator sits on a separate window from the main chart.
Wave Trend Oscillator Indicator BUY/SELL Signals
The above picture shows the Wave Trend Oscillator indicator on a EUR/USD chart. The indicator has two terminals (overbought and oversold) to gauge the extremes of the market.
The Wave Trend Oscillator indicator for MT4 gives BUY/SELL trading signals when the oscillator crossover. The indicator provides more reliable signals on the higher time frames especially when the price gets to the overbought/oversold level.
Regardless, not all crosses are tradable as no indicator is 100% efficient. Hence, this MT4 indicator is recommended to be used in sync with other indicators or price action. This helps increase your winning rates rather than losses.
To get a high probability BUY setup, the oscillator needs to be in contact with the oversold region of the indicator. You may open a BUY/LONG after the oscillator crosses the oversold level and price prints a SELL reversal candlestick pattern.
The above BUY example becomes valid after the bullish engulfing candlestick was formed on the oversold terminal. The trade immediately gave out significant pips to the upside before changing direction.
The above SELL setup also followed the same principle. The SELL becomes valid after the bearish engulfing candlestick pattern formed at the overbought terminal.
Both Take Profit and Stop Loss are important in becoming a successful trader. Ensure they are strategically placed and should be realistic.
Conclusion
The Wave Trend Oscillator indicator for MT4 helps you to take trades at strategic turning points with higher winning rates. You need to add this indicator to your chart for a better trading experience. Finally, it is available free to download.
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