The Forecast Oscillator MT4 indicator uses a regression series using the closing price to identify the potential price trend direction. While applying linear regression it plots an oscillator with values above and below a zero line. This oscillator is further smoothed by a simple moving average to provide buy and sell forex trading signals.
Features of Forecast Oscillator MT4 Indicator
The indicator plots a dark turquoise signal line and a lawn green moving average. Oscillator values above zero line indicate a bullish market condition, while the values below zero are bearish. Furthermore, the distance between the oscillator line and the zero line indicates the momentum.
The crossover between the signal line and the moving average indicate a potential price reversal. However, these are filtered additionally to provide trading signals. The indicator plots Magenta dots for sell trading signal and aqua dots for buy trading signal.
Benefits of Forecast Oscillator MT4 Indicator
Primarily, the indicator provides trend direction based on the location of the oscillator with regard to the zero line. Secondly, the distance between indicator line and zero line measures the momentum. Thirdly, the dot trading signals helps in technical analysis and to enter and exit a trade. So, this indicator provides the trader with a complete overview of the price trend.
Furthermore, the crossover of the indicator line and moving average provides and early alert to the trader of a potential price reversal. However, traders can confirm this price reversal using the dot signals. So, it helps traders to exit a trade early.
It works on all chart time frames and is beneficial to all types of traders. Though it may not be very effective for scalping, it provides better trading results to short and long-term forex traders.
Indicator Settings Description
Regress: Input for regression series.
T3:, b: Smoothing factor.
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