The Delta Indicator is a smooth trend oscillator that suits all the timeframes within MT4 terminals.
This indicator separately measures the bullish/bearish strength of the market momentum and generates perfect trend signals on forex, cryptocurrency, and stock charts. Moreover, it works well as a trend filter alongside all sorts of trend-following trading strategies.
Delta Indicator Overview
Delta indicator works based on a simple moving average system that plots crossovers to determine trend directions. The trend status is demonstrated in a very straightforward way so that everyone, including novice traders, can be benefited from its real-time signals.
Delta Indicator Explanation
The red curve in the oscillator window represents the 13-period MA. On the other hand, the blue curve shows the 60 MA level. We consider the market trend bullish when the 13 MA moves above the 60 MA, plotting a bullish crossover. Contrarily, the 13 MA sinks below the 60 MA signals a downtrend market situation.
Once the Delta bands plot a crossover signal, you may consider other technical factors like price levels and price-action signals for confirming an entry. Also, you can add one or more moving averages on the main chart window to filter the Delta signals. Consider exiting an order if the price rebounds in the opposite direction to your entry after meeting significant support or resistance.
Buy Signal Generation with Delta indicator
- The red band moves above the blue band
- The price flips upwards from the current support zone
- SL below the respective support level
- Exit long when the price fails to break above a resistance
Also Read: Exness Review – Is it The Best Forex Broker?
Sell Signal Generation with Delta Indicator
- The red band sinks below the blue band
- The price rebounds downwards from the current resistance
- SL above the resistance zone
- Exit short when the price refuses to break below a significant support
