What is the Derivative Oscillator Indicator for MT4?

The Derivative Oscillator Indicator (DOI) is a technical indicator used to determine the strength of an underlying price trend. The DOI shows whether prices are rising, falling, or staying the same relative to their historical averages.

Derivative Oscillator Indicator

Download Free Derivative Oscillator Indicator

How is it calculated?

To calculate the DOI, you first need to identify two data periods – typically one day and one month. You then use these data points to create three indicators: a moving average (MA), a 10-day exponential Moving Average (EMA), and a 20-day EMA). These indicators are plotted on different timeframes to see how they move together over time.

The DOI is created by averaging the MA, EMA 10, and EMA 20. So, if there’s been strong upward momentum in prices over the past few days/weeks/months, your reading for the DOI will be high. If prices have been stable or declining throughout this period, your readings for all three indicators are likely low (meaning the market is trending downward).

How to use the Derivative Oscillator Indicator for MT4?

The Derivative Oscillator (DO) is a technical indicator that can be used for forex trading. It gives investors an idea of the strength and direction of price movements and is particularly useful in determining when to enter or exit a trade.

To use the DO on your MT4 platform, select the securities you want to analyze and click on “Indicators.” Click on “Derivative Oscillators” and select the DO indicator. The indicator will then show you two lines: one depicting positive sentiment (the blue line) and another showing negative emotion (the red line).

When taking a position in either security based on these signals is appropriate, switch out the positive and negative values to set your buy or sell order. Remember that this strategy only works if you use proper risk management practices – always remember to keep tabs on your overall portfolio balance!

Derivative Oscillator Indicator MT4 trading settings

Here are some MT4 forex derivative oscillator settings you can use to improve your trading results:

-Start Time: This setting determines when the FDOI starts tracking data. You can choose from minutes, hours, days, weeks…or even months!

-Bars Width: This parameter controls how wide each bar in the chart visualization is. Larger bars make it easier to see which price areas have been active recently and help you better understand trends.

-Slow Down Period Length: This parameter slows down how frequently data points from previous candles are taken into account while calculating the current period’s values. It allows for more accurate accuracy than using all past data points at once, as this would result in higher volatility levels; however, this may also increase processing time slightly.

Derivative Oscillator Indicator Advantages

The forex Derivative Oscillator (FDO) indicator is a technical analysis tool that helps traders identify the overbought and oversold conditions in the market. This indicator can identify potential opportunities to enter or exit trades.

Before we go into more detail, here are some of the FDA’s advantages:

-It is simple to use, making it an ideal option for beginner traders.

-Offers unbiased signals, regardless of whether the stock or currency is trending up or down.

-It provides reliable price action information, even in volatile markets.

So why choose the FDO as your primary trading signal?

There are many reasons why this indicator has proven to be successful over the years. It offers accurate feedback on which stocks and currencies are experiencing overheated prices (indicating that they may soon experience a decline). Additionally, its neutral stance ensures that you don’t lose money when trends change direction – meaning it’s a valuable tool for hedging strategies too!

Derivative Oscillator Indicator Disadvantages

There are a few disadvantages to using the forex Derivative Oscillator Indicator, but overall it can be a valuable tool for traders. Here are four of them:

-It needs to be more accurate to use as a standalone investment instrument.

-It is difficult to interpret and can lead to mistakes if misused.

-Its performance tends to vary over time, making it unreliable sometimes.

-It requires knowledge of stock market terminology and principles for users to make the most effective use of it.

Derivative Oscillator Indicator installation on MT4

The Derivative Oscillator Indicator (DO) is a technical analysis tool that can be installed on the MetaTrader 4 (MT4) trading platform. To install the indicator on MT4, you will need to follow these steps:

  1. Download the DO indicator file in “.mq4” format.
  2. Open the MT4 platform and navigate the “Navigator” tab.
  3. Under the “Navigator” tab, click on the “Custom Indicators” option.
  4. Drag and drop the downloaded “.mq4” file into the “Custom Indicators” folder.
  5. Restart the MT4 platform to activate the indicator.
  6. Now, you can add the indicator to a chart by selecting it from the “Insert” menu, then “Indicators,” and then “Custom.”

It is best to use this or any technical indicator as a part of the overall trading strategy and not as a single decision-making tool.

Derivative Oscillator Indicator

Derivative Oscillator Indicator mt4 free download


Overall, the Derivative Oscillator Indicator can be a valuable tool for forex traders. However, it has some disadvantages that must be considered before investing in this indicator. Overall, it is an effective way to help you make sound investment decisions.

Author: Dominic Walsh

I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Linkedin | Youtube| Twitter | Pinterest | Medium | Telegram Channel | Quora | Reddit

Leave a Comment