5-34-5 Oscillator for MT4 Download – Free – [TradingFinder]

The 5-34-5 Oscillator is a modified version of the popular "Awesome Oscillator," which uses lines instead of a histogram. This trading tool, with 1 main line and 1 signal line, shows price direction and suitable entry points for trades.

The main advantage of this indicator lies in displaying market Momentum faster compared to its classic version. In addition, simultaneous line crosses above the zero level can be a reliable sign of a market phase change and the beginning of a new trend.

Indicator Specification Table

The specifications of the 5-34-5 Oscillator are shown in the table below:

5-34-5 Oscillator at a Glance

Trading signals in the 5-34-5 Oscillator are generated based on the position of the lines relative to the zero level and their crossover.

Thus, an upward crossover indicates the beginning of a bullish trend, while a downward crossover shows the start of a bearish move.

Moreover, when the lines cross the zero axis simultaneously, it highlights the strength of the signal. Under such conditions, the probability of a strong move in the new trend direction increases.

Buy Trade Setup

Analysis of Ethereum (ETH) cryptocurrency, on the 1-hour timeframe illustrates how the 5-34-5 Oscillator works in an uptrend.

As shown in the chart below, an upward crossover indicates the start of a bullish trend. In addition, fluctuation of the lines above the zero level confirms the continuation of the upward move.

Sell Trade Setup

According to the XAU/USD chart on the 5-minute timeframe, the start of a bearish trend is confirmed by a downward crossover of the lines.

Furthermore, fluctuation of the oscillator lines below the zero level shows the strength of the bearish move.

Conclusion

The 5-34-5 Oscillator is a simple and practical tool for identifying bullish and bearish trends in Forex market, cryptocurrency, and other markets. Presenting signals through two lines makes it easier to recognize entry and exit points.

Moreover, this indicator can be applied across all timeframes, and traders of any skill level can use it. Combining this tool with methods such as price action or confirmation indicators enhances signal accuracy and provides suitable conditions for risk management.