The Chaos Visual forex indicator is doing great in forecasting possible top and bottoms, even on the smaller timeframes for scalping purposes.
Chaos draws blue and orange histogram bars in a separate trading window below the main MT4 chart.
The indicator will be used to trade trend reversals signals on any currency pair.
- Blue bars identify a possible top.
- Orange bars identify a possible bottom.
This indicator works great in a range-bound market but will fail in a trending market.
Therefore, it is recommended to use this indicator together with a real trend following indicator (moving averages, Bollinger Bands, ADMI) and only pick tops and bottoms in the direction of the trend.
For example, when according to the trend following indicator, the trend is up, only trade the bottom signals from Chaos visual forex indicator and ignore the top reversal signals.
Likewise, when the trend is down, only trade the top signals and ignore the bottom reversal signals.
Feel free to experiment with the different indicator’s inputs settings to suit your needs and preferences.
The EUR/GBP Daily chart below displays the Chaos Visual Metatrader 4 forex indicator in action.
Basic Trading Signals
Signals from the Chaos Visual Tops & Bottoms Forecaster MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy order when the Chaos Visual Tops & Bottoms Forecaster indicator draws the first blue histogram bar.
Place a stop loss below short-term support or use your own preferred SL method.
Sell Signal: Open sell order when the Chaos Visual Tops & Bottoms Forecaster indicator draws the first orange histogram bar.
Place a stop loss above short-term resistance or use your own preferred SL method.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (timeframe, smoothing period, multi time frame mode, alerts)Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Type: tops & bottoms
Copy and paste the Chaos Visual averages 1.43.ex4 indicator 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)