The OBOS Metatrader 5 forex indicator is short for OverBought & OverSold, and it represents an oscillator that shows the buy/sell direction of the currency market via the use of colored histograms within a separate indicator window.
The indicator is marked overbought when it pushes above the 100.00 level, and oversold when it dips below the -100.00 level.
The color of the histograms found within the OBOS indicator are green, red and gray, which represents upward movement, downward price action and an uncertain market session.
To cap it all, the indicator comprises of three inputs parameter:
- Period – defines the calculation period
- Overbought – defines the overbought level
- Oversold – defines oversold level
The USD/JPY H1 chart below displays the OBOS Signals Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the histograms of the OBOS Metatrader 5 forex indicator turns green.
Sell Signal: Go short when the histograms of the OBOS Metatrader 5 forex indicator turns red.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the histograms of the OBOS indicator turns red
Exit sell trade: Close all sell orders if while a bearish trend is running, the histograms of the OBOS indicator turns turn green.
Tips: In its current settings, the OBOS indicator is well-suited for scalping, but adjusting the value of the “period” inputs parameter will increase its usability as a long-term or day trading technical analysis tool.
Experiment with this setting.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Period, Overbought, Oversold), 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 OBOS.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)