Chifbaw Oscilator is a forex trend following indicator. Author of this tool claims it can be used for profitable trading as standalone, however we thinks it is better to use Chifbaw Oscillator as filter in a good trading system. It can be powerful combination. Let’s take a deeper look.
How to trade with Chifbaw Oscilator?
The oscillator is represented at the bottom of the chart with green and red bars that oscillate around the zero line. When the price is in an uptrend, the oscillator shows green bars. When the price is in a downtrend, the oscillator shows red bars. When the oscillator changes sign, it is a signal to enter the market (trend changes direction).
Buy signal: when the oscillator changes sign from positive (green bar) to negative (red bar), one has to sell.
Sell signal: when the oscillator changes sign from negative (red bar) to positive (green bar), one has to buy.
As you can see it may be not enough to use this indicator without help of any filters. Our suggestion is that it can be effectively used in tandem of the pivot levels or support / resistance levels or candlestick patterns. They can greatly increases the chances of profitable trading with Chifbaw Oscilator, but on it’s own it is not sufficient enough to make buy / sell decisions.