The Elliot oscillator wave forex indicator is an oscillatory indicator that incorporates the waves. Mr. Alex developed it in Moldova. When downloading, you can download either the Elliot forex oscillator – wave.rar or the Elliot oscillator – waves 1.02. mq4.
As the name suggests, the Elliot oscillator–wave indicator combines a wave and the oscillator indicator. Most of the rest of the forex oscillators have bars that oscillate on either side of a central line. However, for the Elliot oscillator–wave indicator, there is an addition of waves inside which the oscillator oscillates.
The Elliot oscillator wave forex indicator is displayed on a separate window below the main forex trading window. It is responsible for displaying blue and purple color bars on either side of a zero line. The blue color bars are formed on the upper side of the zero line, while the purple color bars are formed on the lower side of the zero line. In both cases, the bars start forming from the zero line and grow in either direction depending on the market movement. The bars are the central part of the oscillator. The oscillation occurs when the bars oscillate or move on either side of the zero line.
Fig.1. The Elliot oscillator waves indicator on a chart.
This forex indicator also has a wave. The wave acts as a good confirmation of the market trend direction as indicated by the oscillator. The wave has two Elliot wave lines on either side of the oscillator indicator. There is a line on the up and lower side of the zero line. The chart wave widens and narrows according to the market range price swings. If the range of the market swings is narrow, then the wave will also be thin, and the bars will be very tiny. On the other side, if the range of the mt4 market swings is huge, then the wave (the two forex Elliot wave lines on the up and low sides of the zero line) will be extensive, and consequently, the bars will be long. The wave has a short default period of 5 and a long period of 35.
If you look closely, you will notice a yellow bar on either side of the oscillator. The appearance of the yellow color bars is of very much significance. The yellow color bar appears when the market prices are preparing to have a pullback. When the yellow color bar appears, the trader should be aware that the market will move some pips before continuing with the general market trend.
How to trade using the forex Elliot oscillator wave indicator
The trader should put a SELL order when the purple bars start to form. However, it is essential that you at least put a sell order after the second purple bar has been created.
For the BUY order, the forex trader should place it when the forex oscillator displays blue color bars and after at least two bars have formed.
Example of putting trades using the Elliot oscillator wave forex indicator.
After putting your order, and it is gaining some profits, you should close it if a yellow color bar appears since the market will retrace.
Elliot Oscillator Wave Forex Indicator Free Download