The FXForecaster MT4 Indicator is a trading strategy which is used to trade forex in several ways. For this strategy, we will demonstrate two ways in which the strategy can be traded.

• For the short trade, we will demonstrate how the FX Forecaster MT4 indicator can be used to trade divergences.
• For the long trade, we will demonstrate how the FX Forecaster MT4 indicator can be used to trade a breakout sequence.

The FX Forecaster MT4 indicator is made up of two component histogram bars.

• The pink-coloured bars represent the fast-moving
• The black histogram bars represent the slower-moving and usually indicate that price action is in more or less in range-bound mode.

[sociallocker id="9002"] FXForecaster MT4 Indicator Download  + Claim Your FREE USD30 [/sociallocker]

 

FXForecaster MT4 Indicator Strategy and Trading Rules

For the divergence strategy, we simply use the highs and lows of the pink histogram bars of the FXForecaster MT4 indicator to identify areas of divergence from the price action and trade the correction accordingly. Our example will illustrate how this is done for short trades. Trading a histogram breakout is a bit more complex and involves the following:

1. Identifying areas where the pink bars are emerging from the black bars to the upside (for long trades) or to the downside (for short trades). Our example displays the scenario for long trades.

The trading rules for this pattern as shown by the indicator are as follows:

FXForecaster MT4 Indicator Short Trade Entry Rules

• The FXForecaster MT4 Indicator is displaying lower highs when the price action is showing higher highs.
• Draw a trend line to demarcate the higher highs, and then trade the next candle on the bounce downward from this line.

A close look at the chart above shows the trade setup. You can clearly see the divergence with higher highs on the price chart and lower highs on FXForecaster MT4 Indicator. Stop Loss and Take Profit Settings The Stop Loss is set a few pips above the high of the candle which is rejected at the trend line located on the candle highs. The Take Profit point should be set to correspond with the area where the pink histogram bars of the FX Forecaster MT4 indicator has the lowest amplitude. This is displayed as the encircled areas on the price action as well as the pink histogram bars.

FXForecaster MT4 Indicator Long Trade Entry Rules

For the long trade example, we look at another way in which the FXForecaster MT4 indicator is used. This time, we use it to capture price breakout moments. This involves an interplay of the pink and black histogram bars of the FXForecaster MT4 platform as well as knowing when to initiate the breakout trade. The long trade entry signal occurs when the following setup is seen on the charts:

• The FXForecaster MT4 Indicator pink histogram bars start to emerge above the black histogram bars. Usually, the trader should wait until the pink bar just emerges slightly from the upper border of a corresponding black bar, and allow the candle here to close.
• Once the candle following this signal candle opens, initiate a long trade.

On this chart, we can see three areas where the long entry signal was valid. Study this chart carefully and practice on a demo account. Stop Loss and Take Profit Settings The Stop Loss is set a few pips below the lowest price of the signal candle, which is the candle on which the pink histogram bar emerges above the black bar. The Take Profit point should be set at a point where the pink histogram bars are at the point of highest amplitude. This is shown as the encircled area on the charts.

Recommended Time Frames for the FXForecaster MT4 Indicator

Technically speaking, you can use this MT4 indicator for all time frames. However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly. We recommend that you use higher time frames like the 4H for better consistency.

---

FXForecaster MT4 Indicator Download

We have provided this powerful trend trading indicator to you at no cost. We humbly request for your help to spread the word by sharing on one of the social platforms below. To unlock the download link, you just need to share this page to help us achieve our goal of helping more traders out there.

[sociallocker id="9002"] FXForecaster MT4 Indicator Download  + Claim Your FREE USD30 [/sociallocker]

Leave us a comment below to let us know your thoughts on this indicator. If you like this indicator, you might like see other indicators that we have carefully selected that will help you in your trading journey.

And if you can, you really should invest in a proven MT4 Expert Advisor to help you generate some profit on full autopilot. We highly recommend this powerful MT4 Expert Advisor. Visit our Free MT4 Indicator Download page. We hope you have enjoyed this post as much as we have creating it. Good luck and thank you for your readership.