WPR Overbought Oversold Trading System For MT4

WPR Overbought Oversold Trading System For MT4

Table Of Contents:

  1. WPR Overbought Oversold Trading System For MT4
  2. The WPR overbought oversold trading system – Long positions
  3. The WPR overbought oversold trading system – Short positions
  4. Pros and cons of trading with the WPR overbought oversold trading system


Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.


The WPR Overbought Oversold Trading System For MT4 is a unique trading system because it focuses on the overbought and oversold levels. The overbought and oversold levels, also known as OBOS is widely used in range trading. This means that when prices are trading sideways, the momentum or other oscillators tend to move in and out from the oversold or overbought levels.

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These movements from the oscillators can be used as a way to trade when the markets are not in a trend. Let's now take a look at the indicators that are used which make up the WPR overbought oversold trading system.

Firstly, we have the trend magic indicator. This indicator is critical to the success of the WPR overbought oversold trading system because your trading rules begin with this indicator. It basically shows the trends that are taking place in the markets. Following how price behaves to the trend magic indicator, you would then move on to the rest of the rules.

Secondly, we have the Fibonacci pivots indicator. As the name suggests, this indicator plots the intraday pivot levels using the Fibonacci levels. This is up to you whether you want to keep this indicator or now. You can use the Fibonacci levels either as a way to book profits or you can simply get rid of this indicator to make the trading template a bit more light weight.

Finally, on the price chart, we have the WPR overbought and oversold arrows indicator. These are the arrows that you see plotted on the price chart. They appear when the oscillators are either overbought or oversold. You can use these arrows as potential levels to book your profits. Alternately, these arrows are also used as a filter to enter your trades.

Moving on, in the sub window, we have the Stochastics oscillator. The Stochastics oscillator is a trend momentum indicator. The indicator depicts overbought levels when it is above 80, suggesting that price is likely to move lower, and it indicates oversold levels when it is below 20 indicating that price is likely to move higher in the short term.

We also have the CCI or the commodity channel index indicator. The CCI is also a momentum indicator. But unlike the Stochastics oscillator, this indicator moves around fixed values of -10 and +100. Depending on where the oscillator it, it can once again signal overbought and oversold levels.

It is only rare that you will see both the CCI and the Stochastics oscillator moving in sync. In most cases one of the indicators tend to lead or lag the other.

The WPR overbought oversold trading system – Long positions




For long positions using the WPR overbought oversold trading system, we should first wait for the price action to trade above the trend magic indicator. At this point you would see the trend magic indicator turning blue. Wait for price to retest this indicator from the upside, i.e: making a small pull back.

Following this, you should look to the Stochastics oscillator. Here, we need to see the Stochastics oscillator rising from the oversold level. It should also make a bullish crossover around the 20 level of the indicator. Finally, the CCI indicator should also show that the momentum is to the upside. This means that the CCI indicator must be trading above the zero line of the indicator.

When the momentum indicators confirm the uptrend, you should take a long position at market. Wait for the candlestick to bounce off the trend magic indicator and then open a long position at the start of the next candlestick.

Use the low from the previous candlestick as your stop los level. Hold the long position until you see price signaling a sell or a downward arrow pointing during the uptrend.

The WPR overbought oversold trading system – Short positions




For short positions using the WPR overbought oversold trading system, we should first wait for the price action to trade below the trend magic indicator. At this point you would see the trend magic indicator turning red. Wait for price to retest this indicator from the down side, i.e: making a small pull back.

Following this, you should look to the Stochastics oscillator. Here, we need to see the Stochastics oscillator falling from the overbought level. It should also make a bearish crossover around the 80 level of the indicator. Finally, the CCI indicator should also show that the momentum is to the down side. This means that the CCI indicator must be trading below the zero line of the indicator.

When the momentum indicators confirm the down trend, you should take a short position at market. Wait for the candlestick to bounce off the trend magic indicator and then open a short position at the start of the next candlestick.

Use the high from the previous candlestick as your stop los level. Hold the short position until you see price signaling a buy or an upward arrow pointing during the downtrend.

Pros and cons of trading with the WPR overbought oversold trading system


The WPR overbought oversold trading system, as we mentioned earlier is a really unique method of trading. While the trading system is suited for the short term intraday charts, it is a great way to scalp the markets. This trading system works quite good during trending markets as the strong momentum can push prices around.

The template that comes with the WPR overbought oversold trading system is light weight due to the fact that two of the indicators are the basic standard indicators that you see on the MT4 trading terminal. Therefore, you can use the template to monitor multiple charts at the same time.

The success of trading with the WPR overbought oversold trading system basically depends on the trader. As we demonstrated, it is important to wait for the pullback to occur. But prices will not pull back al the time.

Therefore, traders need to show patience when trading with the WPR overbought oversold trading system.

Download the complete system description and the files here:

FREE WPR Overbought Oversold Trading System

Download the FREE WPR Overbought Oversold Trading System for MT4.

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