You can now download the Overbought and Oversold Forex Indicator for free on AtoZ Markets indicators gallery. With the indicator, you can see when the market could be potentially exhausted, and this will highly improve your trading results.
Overbought and Oversold Forex Indicator works well on 15M, 30M, 1H, and 4H time frames and any currency pair.
How to trade with Overbought and Oversold Forex Indicator?
The interpretation of the indicator is simple. The indicator shows the period when the market move could be exhausted, or is nearing its end. You can trade more accurately, execute well-timed trades, and make higher profits. Overbought means a period where there has been a significant and consistent upward move in price without much pullback. On the other hand, oversold describes a period where there has been a significant and consistent downward move in price without much pullback.
- The market is considered overbought when the indicator rises above the 70 levels. Sell signal can be generated.
- The market is considered oversold when the indicator falls below the 30 levels. Buy signal can be generated.
Currency pairs that are overbought or oversold have a greater chance of reversing direction but could remain overbought or oversold for a long period.
There are two ways how to trade with the indicator:
- Take the SELL signal when the indicator falls below 70 level or take the BUY signal when the indicator rises above 30 level. The best method here is to watch the whole context of the price moves and Price Action. If you feel and see that the market is reversing, it is the right time to trade.
- Close your BUY trades as soon as the line of the indicator becomes red and close your SELL trades as soon as the line of the indicator becomes green.
How to download and install an indicator?
In order to install the indicator on your MT4 platform, you need to follow these steps:
- Click on “Download Indicator” button located at the bottom of the screen.
- Save the file to your computer.
- Extract and move the files into MT4>Indicator folder of the MetaTrader4 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select “Overbought and Oversold Forex Indicator” template to apply it on the chart.
Note: This indicator was developed by fxtradingrevolution. AtoZ Markets does not carry any copyrights over this trading tool.