Chifbaw Oscillator Indicator
MT4 Oscillator TradingFree DownloadThe Chifbaw Oscillator is designed to accurately recognize momentum and catch corresponding short-term profitable trades. Despite its name, this MT4 indicator displays signals in the form of colorful histogram bars. Let’s have a closer look to undestand this tool.
How to interpret readings provided by the chifbaw oscillator?
As you can see, there are green and red bars defining trend direction in certain period. Depending on the timeframe, these signals can be utilizied both in scalping and day trading. It’s worth to note that they are no repaint, thus more reliable.
Obviously each bar color and size has a meaning. Basically, red corresponds to bearish sentiment and forex traders should consider short position. Converesely, green suggests bullish bias and potential long position opportunity. When it comes to sizing – the bigger bar, the stronger impulse (and vice versa).
The entry trigger is pretty simple and it occurs when the oscillator changes sign from positive to negative or the opposite setup. The performance of this approach will vary, based on different market conditions over time.
Combination for increased success rate
It’s a good idea to apply price action patterns and support resistance levels in order to achieve better results with the chifbaw indicator. Let’s take a look at this AUD/CAD H1 chart below as example.
At the top there is R2 resistance dotted line. You can notice rejection candlesticks and further it was confirmed by chifbaw oscillator negative values. Actually there were two potential entries and each of the resulted in a nice gain and profit. Stop loss should have been placed a few pips above that resistance level.
