Forex Overbought/Oversold Indicator on MetaTrader 4 Download - [TFlab]

TheForex Overbought and Oversold Indicator is a practical oscillator for technical analysis traders who are looking to identify overbought and oversold zones in MetaTrader 4.

This indicator displays an oscillator that shows the overbought and oversold zones, and traders can use trading strategies to identify buy and sell opportunities.

Table: Forex Overbought and Oversold Indicator

The following section provides information about the Forex Overbought and Oversold Indicator:

Forex Overbought/Oversold Indicator at a Glance

The Forex Overbought and Oversold Indicator allows forex traders to identify market trends, become aware of overbought and oversold zones during price corrections, and detect when the price returns to the main trend.

This indicator is a useful oscillator that, in the oscillator window, shows entry into level 70 as the overbought zone and entry into level 30 as the oversold zone, which may indicate a trend reversal in the market.

Uptrend in the Forex Overbought/Oversold Indicator

On the 1-hour chart of the USD/CAD currency pair, the price is in an uptrend and has entered a downward correction.

Forex and cryptocurrency traders can use the Forex Overbought and Oversold Indicator to identify oversold zones.

With the oscillator exiting level 30, they can detect the return of price to the main trend and enter a buy position in the market.

Downtrend in the Forex Overbought/Oversold Indicator

On the 4-hour chart of the NZD/USD currency pair, the price is in a downtrend and has entered an upward correction.

The Forex Overbought and Oversold Indicator enables traders to detect the overbought zone by examining the oscillator.

When the oscillator exits level 70, traders can recognize the price returning to the continuation of the downtrend and the end of the upward correction.

In this case, the downward movement of the oscillator can be used as a sell signal in the market.

Settings of the Forex Overbought and Oversold Indicator

The following section shows the settings of the Forex Overbought and Oversold Indicator:

• PERIOD: Setting the calculation period of the indicator;
• METHOD: Setting the calculation method;
• OB_LEVEL: Setting the overbought level;
• OS_LEVEL: Setting the oversold level.

Conclusion

The Forex Overbought and Oversold Indicator is an oscillator that identifies overbought zones, giving traders the ability to detect overextended price conditions.

Traders can use this indicator to perform more advanced technical analysis on charts and identify price reversal points.