Elliot Wave is a very famous trading method, mostly used by the experienced and professional traders. For newbie traders, it might be a bit difficult to get on with the Elliot Bar counting theory in the first place.
Elliot Waves Oscillator makes this job easier for you since it automatically plots the Elliot Wave signals. Moreover, it also tells you about the status and depth of the current market trend.
Elliot Waves Oscillator is quite flexible as an indicator because it can be applied to trade all kinds of forex currency pairs in the markets. Moreover, this oscillator can be used for both scalping and day trading purposes.
Elliot Waves Oscillator Overview
Download and install the Oscillator on your MT4 terminal. Once you’re done, your trading chart will appear like the following image:
Elliot Waves Oscillator Overview Explanation
Elliot Waves Oscillator plots a dynamic band for demonstrating the overbought/oversold levels of the market. The oscillator value reaches above the upper band represents the overbought condition of the market.
On the other hand, the value drops below the lower band means the market is in an oversold condition. The Elliot Wave bars turn positive means the market in a bullish trend and for the bearish trend confirmation, the value must be turned to negative.
A yellow bar signals for the ultimate overbought/oversold condition of the market. Elliot Wave Oscillator can alone guide you through the entry to exits of each trade entry and doesn’t require any additional signal filter.
Elliot Waves: Buy Conditions
- The Elliot Waves bar turn positive
- The indicator value bounces upwards from its oversold area
- Buy triggers after the above conditions are met
- Set stop loss below the current low of the market
- Exit long/take profit whenever the oscillator bar turns yellow
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Elliot Waves: Sell Conditions
- The Elliot Waves bar turn negative
- The indicator value bounces downwards from its overbought area
- Sell triggers after the above conditions are met
- Set stop loss above the current high of the market
- Exit short/take profit whenever the oscillator bar turns yellow