Now paste the Ewo divergence.ex4 and Ewo divergence.mq4 files into indicators folder and restart the MetaTrader 4. Paste the ewo-divergence-indicator.mq4 indicator in the Indicators folder. Please note that even the best trading indicator cannot yield a 100% win rate over long periods. Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the EWO Divergence Forex indicator. The example chart below displays the EWO Divergence mt4 indicator in action on the trading chart.

It’s best to set a profit target as 100% — 161% of the price movement of wave 1 as the EWO doesn’t provide exit points. From the drop down menu, click on indicators list. Finally restart the MT4 platform and attach the indicator to any chart. The indicator works equally well on all assets (Forex, CFD stocks, Indices, Cryptocurrencies, Commodities,..) and shows promising results if used correctly. The EWO Divergence indicator can be used to find high probability trend reversal entries and exits.

## Using the Elliot Wave Oscillator (EWO) to Predict Forex Moves

This feels like swimming with the tide which is close to paradise for a trader. The Elliott Wave Oscillator is a specific tool to help you identify the trend and the overall market pattern to assist in finding future trading opportunities. Elliott Wave Principle, developed by Ralph Nelson Elliott , proposes that the seemingly chaotic behaviour of the different financial markets isn’t actually chaotic.

Motive waves move in the direction of the market trend. In an uptrend, rising waves are called impulse waves, and declining ones are called corrective waves. Conversely, in a downtrend, declining waves are called impulse waves, and rising ones are called corrective waves.

You will still be able to see the wave via extremes and divergence patterns. New waves will often begin with a divergence in the indicator and price. Strategies to play this divergence are explained below. For now, please note that trend reversals are where we often find wave 1. If you know where you are in the Elliot Wave process, you will often find yourself trading in the direction of the underlying market force.

Wave 2 does not fall below the starting point of Wave 1. If that happened you’d still be I the prior trend. When wave 5 ends, consider closing of a position in the direction of the trend and opening of a position in the opposite direction.

Guideline 3 — after a 5-wave motive sequence , its 3-wave corrective sequence usually ends in the area of the prior wave 4 low. Learn forex trading with a free practice account and trading charts from FXCM. MACD settings to 5, 35, 5, it will mirror the EWO. This is shared in case you are more comfortable with that oscillator which provides cross overs to trade.

When wave 5 starts, consider opening of a position in the direction of the trend. When wave 3 starts, consider opening of a position in the direction of the trend. The parameters are available on the Parameters tab of the EWO Properties dialog box under the Style heading. The parameters are available on the Parameters tab of the EWO Properties dialog box under the Calculation heading. Rule 2 — wave 3 can never be the shortest of the three impulse waves. A divergence between the EWO and price will precede a reversal which is also helpful.

## Free Download Ewo divergence mt4 indicator

With the principles in mind, let’s apply the Elliot Wave Oscillator keeping the default parameters. On the following pictures you can see examples of Elliott Waves on an uptrend price chart. This finding could have you at the beginning of a new price move.

You can decide to label the chart yourself but you’ll begin to see the waves without the labels through practice. This oscillator produces a strong correlation with patterns of the Elliot wave. The key take away when using the EWO is that the strongest readings will show you where the 3rd wave lands on the chart.

## Ewo divergence indicator

The EWO will work in all time frames but it is recommended you have a large enough sample of price for the oscillator to work effectively. The possible parameter’s values are MVA, EMA,LWMA, LWMA, SMMA, Vidya , Vidya , and WMAThe default value is MVA. Traders choose the smoothing technique in accordance with their needs and preferences.

Guideline 2 — the forms of wave 2 and wave 4 alternate. If wave 2 is a sharp correction, wave 4 is a flat correction.

This is interpreted as price is compressing and building up energy… Slow MVA — is the longer-period MVA value of the period being calculated . Fast MVA — is the shorter-period MVA value of the period being calculated . EWO — is the EWO value of the period being calculated.

## Xma Coloured Metatrader Mt4 indicator free download

Elliot wave theory states that prices move in “waves” which are nothing more than the direction in which a price is heading. This tool allows you to categorize move into 3 with trends or impulse moves and two corrective moves or retracements before price likely changes its underlying structure. Ewo divergence is a mt4 indicator and it can be used with any forex trading systems / strategies for additional confirmation of trading entries or exits. Up growing color — the parameter allows to specify the color of the histogram bar located above the zero line, the value of which is greater than the value of the immediately preceding one. Take your time and get comfortable with the set-ups of trading impulse waves.

## EWO

Once the charts show you a high probability entry, make sure you enter with strong risk management. Up falling color — the parameter allows to specify the color of the histogram bar located above the zero line, the value of which is smaller than the value of the immediately preceding one. Slow Moving Average — the parameter allows to specify the number of periods, over which the longer-period moving average indicator is to be calculated. The possible parameter’s values are from 2 through 1,000. The smaller the number is, the more sensitive the oscillator is, and vice versa. Fast Moving Average — the parameter allows to specify the number of periods, over which the shorter-period moving average indicator is to be calculated.

After the retracement has finished, you will begin to see the strongest price move which is wave 3. The market and indicator will reach new highs or lows depending on the direction of wave 1. There will be a correction to the reversal or wave 1 which is wave 2.

Wave 3 is not the shortest wave in terms of price as compared to wave 1 or 5. The «Momentum» in this indicator is smoothed out using linear regression. The Momentum is what is displayed on the indicator as a histogram, its purpose is obvious . A squeeze occurs when Bollinger Bands tighten up enough to slip inside of Keltner Channels .

In fact the markets moves in predictable, repetitive cycles or waves and can be measured and forecast using Fibonacci numbers. These waves are a result of influence on investors from outside sources… During the procedure, a trader can customize an indicator by specifying its parameters in the Properties dialog box. For more information, see the Change Indicator Properties article.

EWO is one of three Waves indicators included in the list of standard indicators of Marketscope (the other two are EW and EWN ). The indicators help applying Elliott Wave Theory to forex trading. Fractal markets mean that markets are identified by changes in behavior. One of the ways to forecast changes in behavior based on past behavior and price is the Elliot Wave Theory. We encourage you not to stop digging when you’re three feet from gold and rather learn ways to identify wave patterns that work best for you.