The Timing Colored Signals MT4 forex indicator is a buy/sell signal line trading oscillator.
The indicators fluctuates between 0 and 100.
The 100 value represents an overbought market while the 0 value represents an oversold market.
The Timing indicator draws a colored signal line: green color means the trend is bullish, orange color means the trend is bearish and finally a yellow colored signal line suggests the trend is flat.
Trading the timing signal oscillator for Metatrader 4 is quite simple: go long when the indicator draws a green line and go short when the indicator draws an orange line.
Do nothing when the indicator draws a yellow signal line or stay with your current position.
However, I would use it together with a trend following indicator and take signals from the Timing indicator in the direction of the prevailing trend as indicated by the trend following indicator.
This will increase the number of successful trades.
The EUR/USD Daily chart below displays the Timing Colored Signals Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Timing Colored Signals MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Initiate a long trade when the oscillator reaches the 0 level (oversold) and then start drawing a green signal line (bullish). For best practices, the overall trend must be up.
Sell Signal: Initiate a short trade when the oscillator reaches the 100 level (overbought) and then start drawing an orange signal line (bearish). For best practices, the overall trend must be down.
Trade Exit: Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (Filter, Length) 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 timing-indicator.mq4 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)