How to trade with the PipBoxer MT4 Indicator
The PipBoxer MT4 Indicator is another technical indicator that it’s used to help determine where a trend might be ending and reverse course. The PipBoxer MT4 is an oscillator indicator similar to the Stochastic Oscillator or the RSI that can also be used to help identify when the market is in an overbought or oversold territory. This is a mechanical indicator that is easy to interpret and unlike any other oscillators, it gives less false signals and more accurate overbought and oversold levels.
When the PipBoxer line is below -100 indicates that the market may be oversold and a possible buying opportunity can present itself and conversely, when the PipBoxer line is above the +100 it’s interpreted as the market being overbought and maybe a possible selling opportunity emerges. The key thing to remember here is that it’s only when the PipBoxer line breaks through those levels and come back on themselves again to break back through those levels that is interpreted by the market as a possible buy or sell signals.
The PipBoxer MT4 Indicator Settings
The preferred settings for the PipBoxer MT4 indicator are the default settings which is 14 and which encompass almost 3 weeks’ worth of trading. In order to change the indicator setting go to the top menu and select Charts – Indicators List – PipBoxer MT4 Indicator – Inputs – PB period.
In order to change the colors of the PipBoxer oscillator line go to the top menu and select Charts-Indicators List-RSI Filter MT4 Indicator-Colors and select your preferred color. Even though the PipBoxer MT4 indicator can be used as a buy and sell signal generator in order to increase the win rate and for a better timing, we’re going to use multiple time frame analysis and only trade in the direction of the predominant trend.
Going forward, you’re going to learn a simple and yet very effective scalping strategy that is designed for the novice and professional day trader alike.
PipBoxer MT4 Strategy and Trading Rules
The concept of multiple time frame analysis in combination with the PipBoxer MT4 Indicator is the recipe for a profitable scalping strategy that will ensure your longevity in this business. The PipBoxer MT4 strategy uses the higher time frame, respectively the daily chart, in order to spot if the market is in an overbought or oversold territory. The lower time frame, the 5-minute chart, will be used to time the market and buy/sell accordingly. Without further ado, these are the PipBoxer MT4 strategy rules:
- Buy signal: Make sure on the Daily time frame the PipBoxer oscillator is below -100 and crossing back through the -100 level from below. Switch to the 5-minute chart and buy when the PipBoxer oscillator is below -100 using a protective stop loss of 20 pips (static number) and take profits once the PipBoxer oscillator touches +100 line.
- Sell signal: Make sure on the Daily time frame the PipBoxer oscillator is above +100 and crossing back through the +100 level from above. Switch to the 5-minute chart and sell when the PipBoxer oscillator is above +100 using a protective stop loss of 20 pips (static number) and take profits once the PipBoxer oscillator touches -100 line.
In the chart below, we have the EUR/USD Daily chart which recently as per the PipBoxer MT4 indicator showings is in oversold territory which means that we’re only going to buy using the 5-minute time frame as our timing chart.
After we determined the trend direction from the daily chart, the 5-minute time frame (see Figure 4) will help us time the market. After four buying opportunity, out of which 3 were profitable trades we ended up with +55 pips in profit, which is quite impressive for a day’s worth of trading.
The most important thing to remember about the PipBoxer MT4 indicator is that we have to wait for the oscillator to break away from its overbought/oversold territory as this is showing the market’s willingness that it’s ready to start the new cycle and only then we want to be involved in the market as that’s when the probabilities of having a profitable trade are the highest.
Pipboxer MT4 Indicator – Recommended Time Frames
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.
Pipboxer MT4 Indicator Download
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