The Ahoora Oscillator MT4 forex indicator is a colored buy and sell technical oscillator indicator.
It deploys two extreme values, 0 and 100.
Oversold markets are found near the extreme 0 value while overbought markets are found near the extreme 100.
The Ahoora Oscillator draws a colored signal line:
- A green line suggests the oscillator trend is upward and price is bullish
- A red line suggests the oscillator trend is downward and price is bearish
This indicators needs to traded in agreement with a trend trading indicator.
For instance, the 100 period MA or 89 period EMA would work.
Trade Ahoora oscillator signals in the direction of the overall trend.
Price trades above the trend trading indicator? Trade the green oscillator lines and ignore the red ones.
Price trades below the trend trading indicator? Trade the red oscillator lines and ignore the green ones.
This approach works great for scalping and day trading during the London and New York trading sessions.
The default Ahoora oscillator “lookback” period is set to 25, I prefer to set it to 100, this reduces the number of false signals significantly.
You can change this value from the indicator’s inputs tab.
The EUR/USD Daily chart below displays the Ahoora Oscillator Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Ahoora Oscillator MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade position when the Ahoora oscillator signal line changes color from red to green.
Sell Signal: Open sell trade position when the Ahoora oscillator signal line changes color from green to red.
Trade Exit: Close the open buy/sell trade when an opposite signal occurs, or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (MA method, Lookback) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the ahoora-indicator.mq4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)