The Overbought & Oversold (OBOS) Market Scanner indicator for Metatrader 5 identifies the best oversold and overbought market levels in real time.
It uses the 100 and -100 extreme values as follows:
- The 100 indicator reading is considered overbought.
- The -100 indicator reading is considered oversold.
The OBOS indicator works best when combined with a trend indicator (moving averages, ADMI, etc.).
The following indicator inputs and parameters can be modified: period (9), overbought (100), oversold (-100), style, color.
The OBOS indicator works for any trading instrument that can be loaded in the Metatrader 5 platform.
Make yourself familiar with this technical indicator and test it first on a demo account for an extended time.
It supports all time frames and Forex pairs.
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Chart Example
The following chart shows how the Overbought & Oversold Market Scanner indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Overbought & Oversold Market Scanner Indicator?
Find a simple trading example below:
Buy Signal
- A buy signal is given when the oscillator reaches the -100 value and the general market trend is upward.
- Open a buy trade and place your stop loss 3 pips below the most recent support area.
- Close the buy trade as soon as the oscillator reaches the 100 overbought value.
Sell Signal
- A sell signal is given when the oscillator reaches the 100 value and the general market trend is downward.
- Open a sell trade and place your stop loss 3 pips above the most recent resistance area.
- Close the sell trade as soon as the oscillator reaches the -100 oversold value.
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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 OBOS.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