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?
It is easy to interpret the indicator. This indicator indicates when the market could end or near its end. Trades can be executed more accurately and profitably. A period in which there has been a consistent and significant upward movement in price, without any pullback. Oversold, on the other hand is a period in which there has been a consistent and significant downward movement in price without any pullback.
- If the indicator rises to 70, the market is considered overbought. A sell signal may be generated.
- If the indicator drops below 30 levels, the market is considered to be oversold. A buy signal can be generated.
Overbought and oversold currency pairs have a higher chance of reversing their direction, but may remain so for a longer period.
You can trade with the indicator in two ways:
- If the indicator drops below 70 levels, take the SELL signal and if it rises above 30, take the BUY signal. This is the best way to observe the entire context of price movements and Price Action. If the market is in a reversal, then it's the right time for you to trade.
- Your BUY trades should be closed as soon the indicator's line turns red. You should also close your SELL trades once the indicator's line turns green.
Want to trade Forex using Overbought And Oversold Indicator with a reliable broker? Open an account with any of the below AtoZ Markets approved forex brokers:
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 MetaTrader 4 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.
Should you trade using Overbought And Oversold Indicator on your own at all?
Before you start trading with this Indicator, you'll want to read this.
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