The Velocity Arrows Indicator for MT4 is a unique forex tool that measures the speed at which price moves in a particular direction. By tracking velocity with fast and slow moving averages, the indicator provides clear buy and sell signals, helping traders spot momentum shifts and potential reversals.
It is suitable for all levels of traders and works across all MT4 timeframes.
How the Velocity Arrows Indicator Works
The indicator plots two moving averages at the bottom of the chart:
- Lime Green Line – Fast moving average
- Orange Line – Slow moving average
Understanding Velocity Values:
- Values above zero → Bullish momentum
- Values below zero → Bearish momentum
Crossovers between the fast and slow moving averages generate trading signals:
- Bullish Crossover – Lime green line crosses above orange line → Buy signal (green arrow)
- Bearish Crossover – Lime green line crosses below orange line → Sell signal (orange arrow)
This visual arrow system provides quick, actionable trade entries without cluttering the chart.
Trading Strategy
Buy Setup
- Lime green line crosses above the orange line.
- A green arrow appears on the chart.
- Enter a Buy trade at the candle close.
- Place stop loss below the previous swing low.
- Exit when:
- The indicator signals a bearish crossover, or
- Your predefined target is reached.
Sell Setup
- Lime green line crosses below the orange line.
- An orange arrow appears on the chart.
- Enter a Sell trade at the candle close.
- Place stop loss above the previous swing high.
- Exit when:
- The indicator signals a bullish crossover, or
- Target profit is achieved.
Key Features
- Displays price velocity with fast and slow moving averages
- Generates visual buy (green) and sell (orange) arrows
- Works on all MT4 chart timeframes
- Identifies momentum shifts and potential reversals
- Simple and intuitive for beginners
- Suitable for Scalping, intraday, and swing trading
- Can be used in combination with other technical indicators
Why Use the Velocity Arrows Indicator?
The indicator provides a clear view of market speed and momentum, allowing traders to:
- Detect accelerating or decelerating trends
- Spot reversal opportunities early
- Time trade entries with confirmation from crossover arrows
- Reduce false entries in choppy markets
Conclusion
The Velocity Arrows Indicator for MT4 is an effective momentum and reversal tool that shows the speed of price movements using fast and slow moving averages. By providing clear buy and sell arrow signals on crossovers, it helps traders make precise, timely entry and exit decisions.
