The Hi Lo Range Oscillator Indicator for MT4 is a powerful non-repainting oscillator designed to identify overbought and oversold market conditions with precision. By calculating previous high and low prices, the indicator generates a normalized oscillator value between 0 and 100, helping traders spot potential trend reversals early.
This makes it an excellent tool for entering trades at better prices during the beginning of a new trend.
How the Hi Lo Range Oscillator Works
The indicator appears in a separate window on your MT4 chart and includes:
- Red Signal Line – Main oscillator line
- 80 Level – Overbought zone
- 20 Level – Oversold zone
Interpretation:
- Values above 80 → Market is overbought
- Values below 20 → Market is oversold
The strategy focuses on reversals from these extreme levels.
Sell Strategy (Overbought Reversal)
- The indicator moves above the 80 level (overbought).
- The red line reverses and crosses back below 80.
- Open a Sell trade.
- Place stop loss above the previous swing high.
- Target profits near the oversold 20 level or based on your risk-reward ratio.
This setup is ideal for catching bearish reversals after extended bullish moves.
Buy Strategy (Oversold Reversal)
- The indicator moves below the 20 level (oversold).
- The red line reverses and crosses back above 20.
- Open a Buy trade.
- Place stop loss below the previous swing low.
- Take profit near the overbought 80 level or use structured risk management.
This strategy helps traders enter early during bullish reversals.
Key Features of Hi Lo Range Oscillator Indicator
- Non-repainting after candle close
- Identifies overbought and oversold zones
- Based on previous high and low price calculations
- Simple visual signal line
- Works on all intraday timeframes
- Effective for scalpers and intraday traders
- Suitable for swing and long-term traders on H4 and higher
- Beginner-friendly and advanced trader compatible
Best Timeframes to Use
- Scalping & Intraday Trading: M5, M15, M30, H1
- Swing Trading: H4
- Long-Term Trading: Daily and above
Higher timeframes often provide stronger and more reliable reversal signals.
Why Choose the Hi Lo Range Oscillator?
Unlike many oscillators that repaint or lag significantly, this indicator remains stable after candle close. It provides clear reversal signals from extreme zones, helping traders avoid chasing price and instead enter at strategic levels.
It works exceptionally well when combined with:
- Trend Confirmation tools
- Support And Resistance levels
- Price Action strategies
Conclusion
The Hi Lo Range Oscillator Indicator for MT4 is a reliable non-repainting tool that accurately identifies overbought and oversold forex market conditions. With its simple structure and effective reversal signals, it is suitable for both new and experienced traders looking to improve entry timing and trade precision.
If you want a clear, easy-to-follow oscillator strategy for MT4, this indicator is a strong addition to your trading system.
