DEROSC is short for Derivative Oscillator, and it is a brainchild of Constance Brown.
The indicator was brought to limelight when it got published in her book “Technical Analysis for the Trading Professional.”
The DEROSC Metatrader 5 custom forex indicator is a combination of two EMAs with default parameters of 5 and 3, which are used to produce a double exponentially smoothed RSI MT5 indicator.
The default period 9 represents the signal line that is formed by the simple smoothing of the ensuing twice exponentially smoother RSI (2ERSI), while the derived histogram is a product of the difference between the 2ERSI and signal line.
Visually, the indicator is quite easy to interpret.
Incorporate DEROSC in your scalping, day trading and swing trading forex systems and strategies!
Download the “DEROSC.ex5” MT5 indicator
The EUR/JPY H1 chart below displays the DEROSC Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the green and yellow green colored histograms of the DEROSC Metatrader 5 forex indicator gets aligned above the zero level.
Sell Signal: Go short when the red and orange colored histograms of the DEROSC Metatrader 5 forex indicator gets aligned below the zero level.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the indicator pops up a red histogram below the zero line.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the indicator pops up a green histogram above the zero line.
Tips: The utilization of two EMAs, a simple moving average and a Relative Strength Index as the core of DEROSC MT5 forex indicator, point toward the high level of efficacy short-term and medium-term traders will experience when they deploy the indicator.
Download the “DEROSC.ex5” Metatrader 5 indicator
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (RSI period, First EMA period, Second EMA period, SMA period, Applied price), 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 DEROSC.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)