Cycle Identifier Indicator

The Cycle Identifier MT5 Indicator is a powerful custom tool designed for both short-term and long-term forex traders. By generating clean, filtered price-action signals, this indicator helps you determine the perfect time to open buy or sell positions. Its ability to identify market cycles, momentum shifts, and trend strength makes it a valuable addition to any MT5 trading strategy.

Whether you scalp lower timeframes or hold trades over longer market cycles, the Cycle Identifier indicator adapts well and provides clarity in various market conditions.

How the Cycle Identifier MT5 Indicator Works

The Cycle Identifier appears in a separate indicator window below the main price chart. It plots a smooth, fluctuating gray line that swings up and down around the 0.00 level. These swings form peaks and valleys, which are highlighted using colored bars to help traders easily interpret market structure.

Key Components of the Indicator

The indicator uses three internal filters to provide accurate market cycle analysis:

Smooth Moving Averages (SMA): To identify long- and short-term trend direction.

Relative Strength Index (RSI): To measure momentum and overbought/oversold conditions.

Price Action Filter: To remove noise and eliminate false signals during volatile markets.

This combination results in high-quality, filtered signals, ideal for new traders and professionals who require precision.

\Visual Breakdown of the Indicator

When you observe the Cycle Identifier on your MT5 chart, you'll notice the following elements:

Gray Line (Cycle Wave)

Moves above and below the 0.00 line

Shows rhythm and flow of market cycles

Peaks signal potential reversals or momentum shifts

Colored Bars (Trend Strength)

The indicator plots bars at significant cycle peaks:

Lime and dark green bars: Bullish trend

Red and maroon bars: Bearish trend

Thin bars: Weak signals, low momentum

Thick bars: Strong signals requiring trading action

How to Interpret Bar Colors

Color

Meaning

Action

Thick Lime

Strong bullish momentum

Enter Buy

Thin Green

Mild bullish activity

Observe, avoid entries

Thick Red

Strong bearish momentum

Enter Sell

Thin Maroon

Weak bearish movement

Avoid entries

 How to Trade with the Cycle Identifier MT5 Indicator

The Cycle Identifier MT5 works across all timeframes, but its effectiveness depends on your trading style:

Short-term traders: Use M5, M15, M30

Long-term traders: Use H1, H4, D1

Swing traders: Prefer H1 and H4

Below are complete trading strategies for Buy and Sell setups.

H3: Buy Strategy (Bullish Signal)

Identify a thick lime bar below the 0.00 line.

Ensure the gray line is rising or forming a valley.

Confirm momentum with supporting indicators (optional): RSI, MACD, or MA trend.

Enter a Buy trade once the thick lime bar forms.

Place stop-loss below the recent swing low.

Exit the trade when a red or maroon bar appears.

 Sell Strategy (Bearish Signal)

Wait for a thick red bar above the 0.00 line.

Confirm that the gray cycle line is forming a peak and beginning to drop.

Enter a Sell position.

Set stop-loss above the recent swing high.

Close the trade when a green or lime bar appears.

 Tips for Using the Cycle Identifier MT5 Effectively

Avoid trading during consolidations with thin bars.

Combine with trend tools like Moving Averages or ZigZag for accuracy.

Use on higher timeframes for smooth, reliable signals.

Never rely solely on the Cycle Identifier—combine with price action.

Conclusion

The Cycle Identifier MT5 Indicator is a versatile and beginner-friendly tool that helps traders recognize accurate buy and sell conditions through cycle analysis and trend momentum. Its clean, filtered signals make it ideal for both novice and professional traders seeking reliable market insight.

To download the Cycle Identifier MT5 indicator and explore more MT4/MT5 tools, visit IndicatorForest.com today.