The Kurtosis Oscillator Metatrader 4 forex indicator is a tool for gauging market sentiment.
The indicator is designed to act as an oscillator, and allows traders properly gauge price trends.
The indicator appears as a single red line that oscillates above and below the zero signal level.
The indicator is constructed from three different parts i.e. the Kurtosis, Fast Kurtosis (FK), and Fast/Slow Kurtosis (FSK).
The Kurtosis Oscillator shows the average of the difference of a fast moving average set at a default periods of 3, smoothed by an exponential moving average with a default periods value of 66, and the overall result is again averaged by another simple moving average with a default periods set at 3.
It’s highly recommended to use the indicator together with a trend following indicator.
For instance, the 100 exponential moving average would fit.
Trade in the direction of the overall trend and avoid trading against the trend.
The GBP/USD M30 chart below displays the Kurtosis Oscillator Metatrader 4 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the value of the red line of the Kurtosis Oscillator Metatrader 4 forex indicator rises and stays above zero.
Sell Signal: Go short when the value of the red line of the Kurtosis Oscillator Metatrader 4 forex indicator plunges and stays below zero.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the red line of the Kurtosis Oscillator indicator falls below zero.
Exit sell trade: Close all sell orders if while a bearish trend is running, the red line of the Kurtosis Oscillator indicator surges above zero.
Tips: The Kurtosis Oscillator is helpful when estimating trending markets and simplifies things by allowing traders understand the true position of price.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (Length, FirstSmoothPeriod, SecondSmoothPeriod, Price), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend | oscillator
Copy and paste the kurtosis-oscillator.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)