Wave Trend Oscillator
The financial markets are as busy and dynamic, like no other Institution. They also boast of enormous liquidity and profitability for traders who are eager to reap from investments made therein. To reap their profits, investors make use of many tools, techniques and indicators. Indicators are one of the most popular and reliable instruments for trading the financial markets. And this is why Wave Trend Oscillator will be discussed ahead.
In technical analysis of the markets, investors view oscillators to be one of the most important technical tools to comprehend. Still, there are also other technical top 10 mt4 indicators that analysts find supportive in improving their trading. Such as chart reading skills and the Moving Averages. In this post, we will consider the Wave Trend Oscillator.
What is a Wave Trend Oscillator?
Ordinarily, an oscillator is a data or object that moves back and forth between 2 points. The Wave Trend Oscillator is an Indicator/oscillator. It provides swift and more precise sell or buy trade positions in trending market sessions. While it is a quick-moving, a sensitive oscillator with smoothing that is swift to respond to crossovers and performs optimally not to lag price changes.
The Indicator does well at subsequent swings in a volatile market. And that makes this particular Indicator a beneficial instrument when trading the financial market. The Indicator works on the principle that as momentum starts to slow. Fewer buyers (in an uptrend) or smaller number of sellers (in a downtrend) are ready to trade at the prevailing price. An alter in momentum is usually a signal that the prevailing trend is weakening.
The Indicator is designed to signal a potential trend reversal. With where the preceding trend has run its course, and the market price is ready to change direction.
Basic Trading Signals with the Wave Oscillator
Buy Position Signal: go long if the aqua signal dot of the Indicator shows up around the signal level of -60.
Sell Position Signal: go short if the yellow signal dot of the Oscillator shows up around the signal level of +60.
Exit buy trade: terminate all buy orders if the lime line of the Indicator breaks higher than the +60 signal level when a bullish trend is still running,
Exit sell trade: terminate all sell orders if the lime line of the Indicator falls below the -60 signal level when a bearish trend is still on course.
Guidelines: Interestingly, the Indicator adds a sound alert function to its input’s parameter. Therefore, simplifying the trend signal apparatus. Try it for any trading style (day trading, scalping, swing trading).
Wave Oscillator is great at displaying momentum divergences close to extremes. And it can be combined with D3Spotter as a method. Since it is an open oscillator, it does not perform well showing Positive / Negative reversals in a trend as noticeable as a bound oscillator such as RSI.
The divergence signals in the overbought/oversold horizontal areas are quite good and exceedingly flawless. Furthermore, the trend following capabilities and internal trend lines while in the trading timeframe is exceptional.
Effectiveness of Wave Oscillator
Market Technical analysts agree that oscillators are better suited for ranging markets (sideways markets). And consider them more in effect when applied in conjunction with a technical indicator that detects the market as being in range-bound or in trend.
For instance, a moving average crossover indicator can be adequately used to decide if a market is in a trend or not. The Oscillator Signals become much more significant and helpful when the trader/analysis determines that the market is not trending.
Installing the Indicator on MT4 Charts
The Indicator is easy to use on Meta Trader 4, MT4 charts and provides the trader with a means of adequately analyzing the market and making interesting trading decisions.
The following steps will guide anyone on how to easily and quickly install the software on a desktop’s MT4 Trading platform.
Step 1: Download the Wave Oscillator mq4 and save on your computer.
Step 2. Then, extract the Wave Oscillator mq4 straight into a folder.
Step 3. Go to the extracted folder and Copy the Oscillator mq4
Step 4. Paste the indicator in the Meta Trader Indicators folder (C:\Program Files\Meta Trader 4\expert\indicators).
That’s all for the installation process.
The picture below shows the Oscillator (curves under the candlesticks) in a Forex trade chart:
From the picture of the chart above; you can deduce that the horizontal lines at the bottom and top of the Indicator are like the oversold and overbought thresholds on the Stochastic RSI indicator. They demonstrate the areas at the strongest part of the trend, typically just before the reversal.
Final Say On Wave Trend Oscillator
The Wave Trend Oscillator is a very dependable indicator of mid and long-term swings in market price. And is a helpful tool for any trader to add to their trading toolbox. It performs very well in directing traders on safe trading positions. If you ever traded with a premium mt4 trend indicator you will feel more relax. Become always trade with the trend.
The technical Indicator builds low and high bands between two extreme values and then constructs a signal that fluctuates within these established bounds. As a result, traders use the trend indicator to ascertain short-term oversold or overbought market conditions. If the value of the Indicator is near the extreme upper value, technical traders deduce the information to mean that that particular asset is overbought. When it is close to the lower extreme, traders view the asset as being oversold.
This Indicator works pretty well in the markets, assisting traders in taking profitable positions. However, when combined with other indicators, it extracts the best outcome.
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