cycle indicator mt4

It is the Trend Cycle MT4 indicator is a more sophisticated variation of the previously mentioned Overbought or Oversold indicator. It is a combination of MACD and Stochastic, creating an oscillator with less noise and lag than its MACD and Stochastic counterparts, and providing early signals for forex traders. Finally, the indicator is highly efficient in identifying the start of new trends earlier and helps forex traders to stay in trend.

Trend Cycle MT4 Indicator Trading Signals

 The chart shows the indicator, which is displayed in a separate window, coloured in dark blue. In contrast to other Metatrader oscillators, this indicator shows the trend of a downtrend and an uptrend cycle on a straight line.

Trend Cycle MT4 Indicator Custom Trading Setup

It is an oscillator with a range between 0 and 100. It also adds an upper level of 75 and a lower level of 25 and is shown in white. The Trend Cycle indicator is known to be an oscillator which shows overbought and oversold levels. Forex traders consider oscillators with values above 75 to be overbought. Conversely, those with values below 25 are considered to be oversold.

When the oscillator crosses the 25 level to the right, the forex trader can be in an invested position and then hold the position until a different signal is closed. Conversely, suppose you imagine that the trend cycle indicator crosses the 75 mark and moves in a negative direction. In this case, the trader would be able to hold the position to sell and exit with the opposite signal.

To verify the entry signal, a trader can enter a buy order when the candle immediately adjacent to the signal candle closes above the high of that candle. However, the seller can confirm the signal when the candle adjacent to the signal candle closes below the candle’s low.

New forex traders can benefit from trading signals as the signals of the Trend Cycle Indicator are easy to spot and apply. However, experienced forex traders are able to combine signals generated by the indicator with other indicators that track trends. Combining an overbought or oversold oscillator with a trend following indicator will produce a successful trading approach.

Summing up

The Trend Cycle Metatrader indicator is a viable alternative to the MACD. It reduces the lag of the MACD and increases profits for forex traders. Combining MACD and Stochastic in one indicator increases the effectiveness of the indicator.