Introduction to The BO Indicator

Trend following oscillators are unable to distinguish between strength and weakness, but only momentum. Many do not provide objective criteria for a breakout.

BO Indicator, a momentum technical indicator, displays the trend's direction as well as the trend strength and potential breakouts.

What's the BO Indicator?

BO Indicator, a momentum technical indicator, displays both the direction and strength of the trend.

This indicator plots histogram bars that oscillate around zero. The bars indicate whether the general trend bias of the indicator is bullish or bearish. The color of the bars also indicates whether or not the trend or momentum are strengthening or weakening. The trend breakout is confirmed by the presence of markers at levels 1 and -1.

Positive green bars signify a stronger bullish momentum, and positive red bars signify a weakening bullish trend. Negative green bars signify a weakening trend and positive red bars indicate a stronger bearish trend.

A bullish breakout is indicated by green bars that cross above 1, and red bars that drop below -1 are indicative of a bearish breakout.

How does the BO Indicator Work?

The BO Indicator calculates the difference between a 5-bar Simple Moving Average, (SMA), and a 34 bar Simple Moving Average, (SMA). These SMA lines do not depend on the closing of the bars, but on the middle of the bar. This is the average of the high and low. The histogram bars are then plotted based on the SMA line difference. It plots red bars when the current bar's value is lower than the previous one, and green bars when the current bar's value is higher than the previous one.

How to Use the BO Indicator For MT4

Two variables modify the sensitivity of the BO Indicator.

The "Period1", and "Period2", variables adjust the number of bars on the underlying SMA lines. This then alters its sensitivity.

This indicator can be used for identifying trend direction based upon whether the bars are generally negative or positive.

You can also use it to trade trend reversals, which are based on shifting the bars from negative to positive or vice versa.

Traders have the option to change the color of the bars in order to trade momentum-based trend continuation setups.

This indicator can be used to trade breakout signals based upon bars breaking out from the -1 or 1 range as a momentum breakout indicator.

Trade Setup

How to Enter?

The bars should generally be positive. As soon as the green bar crosses above 1, open a buy order. Place the stop loss lower than the entry candle.

When do you want to exit?

If price action indicates a bearish reversal, close the trade.

Setup for Trades

How to Enter?

Negative bars are the norm. As soon as the red bars cross below -1, open a sell order. Place the stop loss at least one candle above the entry candle.

When do you want to exit?

If price action indicates a bullish reversal, close the trade.

Conclusion

Many traders have had success using different methods to use this indicator. Most traders use a combination of these signals with another technical indicator and price action.

Indicators - Download Instructions

BO Indicator for MT4 (Metatrader 4 or MT4) is a Metatrader4 (MT4) indicator. Its purpose is to transform the accumulated historical data.

BO Indicator for MT4 allows you to spot patterns and peculiarities in price dynamics that are not visible to the naked eye.

This information allows traders to assume additional price movements and adjust their strategies accordingly. Click Here for MT4 Strategies

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How do I install the BO Indicator in MT4.mq4

• Download the BO Indicator to MT4.mq4
• Copy the BO Indicator for Metatrader 4.mq4 to your Metatrader Directory/experts /indicators /
• Metatrader 4 Client can be restarted or started
• Choose Chart and Timeframe to test your MT4 indicator
• You can search "Custom Indicators" using your Navigator, mostly left in your Metatrader4 Client
• Right click on the BO Indicator to access MT4.mq4
• Attach a chart
• Change settings or click ok
• Your Chart has the BO indicator for MT4.mq4.

How do I remove the BO indicator for MT4.mq4 in my Metatrader Chart?

• Select the Chart in which the Indicator is running in your Metatrader4 Client
• Right-click to open the Chart
• "Indicators list"
• Select the indicator and click delete

BO Indicator to MT4 (Free download)

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