Center of Gravity V3 Indicator for MT4

The Center of Gravity V3 Indicator for MT4 provides a price channel with multiple extensions defining overbought and oversold levels plus a center line and it’s available to free download.

These lines are highly reactive to price fluctuations and adjust their curvature to the trend direction. Let’s take a detailed look at that interesting forex indicator with some practical trading examples.

Introducing the Center of Gravity V3 indicator

MT4 Indicator Overview

The download link of the Center of Gravity V3 MT4 indicator is placed at the bottom of this post. Once you’re done, your trading chart should look similar to the example below.

Center of Gravity V3 Indicator Example Chart

As you can see, it consists of five lines that together create a channel. Its slope leans toward the ongoing momentum which is an additional hint.

The blue dotted line is called the center line which acts as a Center of Gravity. The main concept behind it is that price after going to extremes, always retraces back to that Center. That’s where its name comes from.

The red, green, and gray bands determine the overbought and oversold levels of an asset. One should anticipate for the price to reach extreme overbought or oversold conditions and then expect a reversal and movement toward the very middle. Therefore, traders can look forward to bullish and bearish market reversals at these sensitive levels and plan to open buy or sell trades accordingly.

This trading gauge is a solid choice for beginners and experienced forex traders. Amateurs can easily identify the entry points using the overbought and oversold levels and they are also provided with the best and most accurate take profit target. Advanced forex traders can utilize technical analysis including signals from higher timeframes and prepare a strategy for trade entry at a lower timeframe.

Trading strategy with the Center of Gravity for MT4

As we already mentioned, trading strategy with the COG V3 is about taking advantage of market extremes. There are three outer extremes for each side – upper and lower. The sell zone is defined above red lines and the buy zone is considered below green lines. Most importantly, the very best signals occur when the price approaches near gray bands. The middle blue line constitutes the Center of Gravity, which is take profit target.

Center of Gravity: Buy Signal

Center of Gravity V3 Indicator Buy Signal

If the price has fallen and passed the two green lines, it means it reached the extreme oversold zone. If it touches the gray line, it’s even better as it is the most powerful signal in that scenario. In that area, look forward to a bullish price pattern and open a buy trade. Set stop loss a few pips below the last market swing low. Take profit when the price rises to the middle line level.

Center of Gravity: Sell Signal

Center of Gravity V3 Indicator Sell Signal

When it comes to selling opportunities, a trade should be oriented to the scenario where the price rises above the two red lines and attain the extreme gray level. It is an ideal entry point for a short trade, since a strong bearish reversal is expected. The suggested stop loss is above the last market swing high. It’s not a surprise – taking profit is recommended at the price level equals the Center of Gravity (dotted blue line).


Another aspect worth mentioning is its settings. We suggest changing the multiplier to 0.3 and the bars back to a higher value, i.e. 200-300 range. Play with them to adjust the indicator to your personal preferences.


The COG V3 generates dynamic signals based on rebounds from overvalued levels. It’s pretty effortless, thus giving traders a feeling to use it with confidence. However, one should really play with the settings as its performance depends on it to a large extent. Nonetheless, our further examination proved that it has some disadvantages. Every time you change the time frame or currency pair you need to reload it from the start, otherwise it won’t display properly. For some, it may be a bit arduous task.

Center of Gravity V3 Indicator Free Download

To download the Center of Gravity V3 MT4 (Metatrader 4) Indicator for free just click the button below:

Center of Gravity V3 Indicator Free Download

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