Introduction to the Elliott Wave Oscillator Indicator
The Elliott Wave Oscillator indicator technically is the difference between a 5-period and 35-period simple moving average (SMA) based on the close of each candlestick.
It’s helpful in determining where an Elliott wave ends and a new one starts. In other words, determining when the market price movement changes its direction (a reversal point) to form an Elliott wave. It is achieved by presenting EWO values in the form of a histogram’s bars.
The indicator is displayed in a separate window placed just below the main trading chart.
Additionally, it will place Elliot Waves legs directly on the chart.
It fits all kinds of timeframes and currency pairs.
The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
Simplified methods to read EWO are the following:
Positive EWO value
- 1) Strengthening trend OR
- 2) Weakening downtrend
- 2) Strengthening downtrend OR
- 3) Weakening uptrend
Negative EWO value
How to set up the Elliott Wave Oscillator indicator in MT4?
Copy and paste the elliot-waves-oscillator.ex4 or elliot-waves-oscillator.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
The Elliott Wave Oscillator indicator is well worth adding to your trading collection but remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it.
Elliott Wave Oscillator Indicator Free Download
To download the Elliott Wave Oscillator Indicator for Metatrader 4 (MT4) for free just click the button below: