The SZO is short for Sentiment Zone Oscillator, and is a Metatrader 5 forex indicator that reveals the market sentiment (activity alongside direction) and regions of extreme activity (overbought/oversold regions).
A dynamic channel is formed when using the SZO forex indicator, beyond this channel deals are labelled as undesirable as a result of the high likelihood of a change in sentiment and of reversal.
If the line of the indicator moves beyond the channel, and at one fell swoop goes into the overbought/oversold region, this could imply that the market trend is about to change quickly.
The SZO Metatrader 5 forex indicator frequently cautions traders of potential change beforehand, which makes the indicator an asset when used in combination with other confirmation indicator.
This indicator works for scalping, day trading, swing trading and position trading.
The EUR/JPY H1 chart below displays the SZO Metatrader 5 forex indicator in action
Basic Trading Signals
Buy Signal: Go long when the red line of the SZO Metatrader 5 forex indicator break above the dotted line to hover along the upper blue line of the indicator.
Sell Signal: Go short when the red line of the SZO MT5 forex indicator break below the dotted horizontal line to hover along the lower blue line of the indicator.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the red line crosses below the dotted horizontal line.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the red line breaks above the dotted horizontal line of the SZO Metatrader 5 forex indicator.
Tips: There are six adjustable input parameter settings that if properly modified will yield personalized trading experience with the SZO MT5 custom forex indicator.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Period, Dynamic levels period, Dynamic levels percent, Overbought, Oversold, Show dynamic levels), 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 SZO.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)