The Efficiency Ratio Directional indicator for Metatrader 5 spots both trending and ranging FX markets and delivers excellent buy & sell Forex signals.
The indicator appears in a separate chart window as an oscillator using the 0.25 and -0.25 threshold levels.
Essentially, we are only concerned about the blue and red signal lines (see chart example).
It works as follows:
- The blue colored signal line generates a buy trade.
- The red colored signal line generates a sell trade.
The following indicator inputs and parameters can be modified: ER period, price, levels for trending/ranging, smoothing period, and smoothing method.
Please make yourself familiar with this technical indicator and test it first on a demo account before using it on real trading account.
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Efficiency ratio directional.mq5 Indicator (MT5)
Chart Example
The following chart shows what the Efficiency Ratio Directional Forex indicator looks like when applied to the MT5 chart.
How To Buy And Sell Currency Pairs With The Efficiency Ratio Directional Indicator?
Find a simple trading example below:
Buy Signal
- A buy signal is formed when the blue Efficiency Ratio Directional line shows up in the chart.
- Open a buy trade and place a stop loss slightly below previous swing support.
- Exit the buy position for a fixed profit target, or wait for a sell signal to close the trade.
Sell Signal
- A sell signal is formed when the red Efficiency Ratio Directional line shows up in the chart.
- Open a sell trade and place a stop loss slightly above previous swing resistance.
- Exit the sell position for a fixed profit target, or wait for a buy signal to close the trade.
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Efficiency ratio directional.mq5 Indicator (MT5)
Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the Efficiency ratio directional.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration