Elliott Wave Oscillator MT4 Indicator, Forex Trading Indicator

Introduction to Elliott Wave Oscillator Indicator
Ralph Nelson Elliott observed that price movements tend to oscillate in some predictable pattern on price charts. This is a wavy pattern with clear pivot points. These are patterns that can predict oscillations and possible trend reversals.
Despite this recurring observation, some traders still make the mistake of placing false trades like an oscillation. This indicator was developed to provide traders with objective signals of momentum reversals based on the Elliott Wave Theory.
What is the Elliott Wave Oscillator Indicator?
The Elliott Wave Oscillator (EWO) is an oscillator-type technical indicator that identifies the direction of momentum based on the crossover of an underlying moving average pair. It then indicates the direction of momentum by plotting a histogram bar oscillating around its midpoint, which is zero.
How does the Elliott Wave Indicator Oscillator work?
The Elliott Wave Oscillator calculates the difference between two underlying moving averages. These moving averages are usually preset to 5 simple moving average (SMA) and 34 simple moving average (SMA) lines. The difference between the 5 SMA and 34 SMA lines is then plotted as a histogram bar.
This version of EWO draws lime bars when the positive EWO bar is higher than the previous bar, and green bars when it is lower than the previous bar. It also draws red bars when the negative bar is lower than the previous bar, and draws maroon bars when it is higher than the previous bar.

This version of EWO also draws a signal line that is preset to the five-bar Simple Moving Average (SMA) of the EWO bars.

How to use the Elliott Wave Oscillator Indicator for MT4?
The Elliott Wave oscillator can be interpreted in different ways depending on the value of the bars, the color changes of the histogram bars, and its interaction with the signal line.
The general trend direction can be observed based on whether the bars are generally positive or negative. Positive bars indicate a bullish trend bias, while negative bars indicate a bearish trend bias.
Color changes between bars can also be an early sign of a momentum reversal.
A crossover between the EWO histogram bar and its signal line is also a signal of a momentum reversal.

Purchase transaction settings
When to enter?
The currency pair should be in an uptrend with significant price fluctuations. Wait for a temporary reversal in momentum, causing the histogram bar to drop below the signal line. Once the histogram bar turns gray, enter a buy order.
Place a stop loss on the support below the entry candle.
When to quit?
Close the trade as soon as the histogram bar turns green.

Sell ​​trade setup
When to enter?
The currency pair should be in a downtrend with significant price fluctuations. Wait for a temporary reversal in momentum, causing the histogram bar to cross above the signal line. Enter a sell order as soon as the histogram bar turns red.
Place a stop loss at the resistance level above the entry candle.
When to quit?
Close the trade as soon as the histogram bar turns maroon.

in conclusion

This oscillator is a good momentum reversal signal and it tends to rely on confirmed momentum reversals. However, it is not an independent indicator. Therefore, it is best to pair this indicator with other trend following indicators and other signs of potential reversal points, such as Fibonacci retracements.

MT4 indicator download instructions

The Elliott Wave Oscillator MT4 Indicator is a Metatrader 4 (MT4) indicator. The essence of this technical indicator is to convert accumulated historical data.
The Elliott Wave Oscillator MT4 Indicator provides an opportunity to detect various peculiarities and patterns in price dynamics that are invisible to the naked eye.
Based on this information, traders can assume further price movements and adjust their strategies accordingly.

The MT4 installation directory/MQL4/Indicators is the indicator folder (place mq4 and ex4 indicators)
The MT4 installation directory/templates is the template folder (where tpl template files are placed)
Then restart the MT4 platform, and your technical indicators or templates will be installed.
Foreign exchange resources (including but not limited to foreign exchange EAs, indicators, and trading systems) all come from foreign websites. We have only made some Chinese introductions and instructions for use of this resource. We are not the authors of these resources. You can purchase discounted resources on this website. .
Investment involves risks. There is no 100% accurate trading system in the world. Any excellent trading system also has periodic defects. One more reference signal is equivalent to one more guidance and suggestion. I wish everyone success as soon as possible!