The Projection Oscillator Metatrader 5 forex indicator is based on the Projection Bands custom MT5 indicator, and embeds into the former the ability to define the borders of price ranges.
Unlike the Project Bands indicator, the Projection Oscillator opens in a separate window with a display of overbought/oversold levels.
There are three key input parameters that are available:
- Period – defines the calculation period
- Overbought – defines the overbought level
- Oversold – defines the oversold level
Seemingly, the formula that explains the indicator is as follows:
- PO = 100 * (Close-DnBand) / (UpBand-DnBand)
- UpBand = Max(High, PrevHigh*SlopeHigh)
- DnBand = Min(Low, PrevLow*SlopeLow)
The GBP/USD H1 chart below displays the Projection Oscillator Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the dodger blue line of the Projection Oscillator forex indicator breaks above the 50.00 level.
Sell Signal: Go short when the dodger blue line of the Projection Oscillator forex indicator dips below the 50.00 level.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the dodger blue line of the Projection Oscillator indicator falls below the 50.00 level.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the dodger blue line of the Projection Oscillator forex indicator surges above the 50.00 level.
Tips: Trading the Projection Oscillator MT4 indicator should be used in combination with other technical indicators (EMA, SMA) when designing suitable trading strategies for scalping, day trading and swing trading.
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 Projection_Oscillator.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)