Extreme Indicator Buy Sell Signals
The Extreme indicator is used to flag potential opportunities in overbought or oversold zones. These situations occur when buyers have outnumbered sellers for a longer stretch of time and the price of the underlying asset has risen, or the opposite — when sellers have been the majority in the market for a while and the price has been falling. Features of this indicator: Related reading: Daily Pivot Point Indicator.
- A free indicator that highlights potential overbought and oversold zones
- Acts as a helper factor for gauging trend strength
- Helps you compare potential buy and sell zones — it is meant to support your analysis, not guarantee a result
- Useful across different currency pairs and timeframes
- Compatibility: MetaTrader 4
In this article we introduce the brand-new Extreme indicator, which looks for the market extreme conditions described above. The indicator itself is easy to understand and use.
The Extreme indicator flags moments when the market price is thought to have reached a possible top or bottom. Traders who watch these zones treat them as one input among several — the indicator does not guarantee a profitable trade, and price can continue moving against the signal.
The Extreme indicator is often applied to major forex pairs, which tend to change price direction frequently, so neither buyers nor sellers dominate for long.
Of course, the Extreme indicator can also be used in any other way that fits your trading strategy. For example, it can be freely combined with other indicators or used as a filter element in a price-action-based strategy. There are no fixed limits here — you can add the Extreme indicator as another component of your trading strategy.
How to Set Up the Extreme Indicator
The Extreme indicator also has a few user settings you can adjust. Here is the list:
- Max Period — sets how many candles back the indicator looks; the resulting value is calculated and plotted based on this history.
- Oversold — the indicator value ranges from -100 to +100. A value of -100 means an extremely oversold market, while +100 means an overbought market. The oversold level sets the predefined threshold for the oversold zone; the recommended default deviation value is -70.
- Oversold zone color — the default color is red.
- Overbought — the indicator value ranges from -100 to +100. A value of -100 means oversold, while +100 means overbought. The overbought level sets the predefined threshold for the overbought zone; the recommended default deviation value is +70.
- Overbought zone color — the default color is green or blue.
How to Run the Extreme Indicator
- Launch your MT4 trading platform
- In the top-left corner, click “File” and choose “Open Data Folder”
- Open the “MQL4” folder, then the “Indicators” folder
- Paste the downloaded file (Extreme indicator) into the “Indicators” folder
- Restart your MT4 trading platform
- The Extreme indicator is now ready to use
Disclaimer: This article is for educational purposes only and is not investment advice. MT4 indicators such as Extreme show historical price behavior and possible overbought/oversold conditions — they do not predict future price movement with certainty, and signals can fail. Trading forex and CFDs involves leverage and carries a high risk of losing your invested capital; you should only trade with money you can afford to lose. Some links in this article are affiliate links, meaning EasyTradeWeb may earn a commission if you use them, at no extra cost to you.
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