The Value Chart Indicator for MT4 is a powerful market analysis tool that visually displays whether a currency pair, stock, or commodity is overbought or oversold. Unlike traditional oscillators like RSI or Stochastic, the Value Chart indicator calculates price deviation from its “fair value” zone, allowing traders to identify true market extremes and make smarter entries and exits.

Value Chart Indicator MT4 showing overbought and oversold zones on EURUSD chart
The Value Chart Indicator MT4 visually identifies extreme price zones for accurate buy and sell opportunities.

What Is the Value Chart Indicator?

The Value Chart Indicator was originally developed by David Stendahl and Dr. John Ehlers, designed to normalize price movements within a consistent range.
It helps traders understand when prices are trading at extreme levels — either too high (overbought) or too low (oversold) — relative to their fair market value.

This indicator uses a statistical approach to represent price on a fixed scale between +8 and -8, where:

  • +8 to +4 = Extremely Overbought Zone
  • +4 to 0 = Overvalued Zone
  • 0 to -4 = Undervalued Zone
  • -4 to -8 = Extremely Oversold Zone

These visual ranges help traders quickly spot potential reversals or trend continuation points without complex interpretation.

How the Value Chart Indicator Works

The Value Chart Indicator plots bars in a separate window below your chart.
Each bar represents how far the current price is from its statistical mean or “fair value.”

Here’s how it works:

  • Green Bars: Indicate price is in a fair or undervalued zone → possible buying opportunity.
  • Red Bars: Indicate price is in an overvalued or overbought zone → possible selling opportunity.
  • Yellow Bars: Show neutral or balanced conditions → low trading opportunity.

When the chart crosses extreme levels (above +8 or below -8), it signals a potential market reversal, especially when confirmed by price action or volume spikes.

How to Trade with the Value Chart Indicator

Buy Signal

  1. Wait for the indicator to drop below –8 (Oversold).
  2. Look for a bullish candle or pattern on the price chart.
  3. Enter a BUY trade at the next candle open.
  4. Place your Stop Loss just below the recent swing low.
  5. Exit when the indicator rises above zero or enters the overbought area.

Sell Signal

  1. Wait for the indicator to rise above +8 (Overbought).
  2. Confirm with a bearish candle pattern.
  3. Enter a SELL trade at the next candle open.
  4. Place your Stop Loss just above the recent swing high.
  5. Exit when the indicator drops below zero or enters the oversold zone.

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Key Features of Value Chart Indicator MT4

  • Detects overbought and oversold zones with accuracy.
  • Works on all forex pairs, commodities, and indices.
  • Non-repainting and lightweight indicator.
  • Easy to use for beginners and professionals.
  • Compatible with MT4 and MT5.
  • Supports multiple timeframes (M1 to D1).

Why Traders Use the Value Chart Indicator

The Value Chart Indicator simplifies complex price behavior into an easy-to-read chart.
It helps traders:

  • Identify price extremes before reversals happen.
  • Avoid false signals from traditional oscillators.
  • Combine with moving averages, MACD, or RSI for more reliable entries.
  • Recognize market exhaustion and time their entries with precision.

Pro Trading Tips

  • Combine the Value Chart with a trend filter (e.g., 50 EMA) to trade in the trend’s direction.
  • Use it alongside Support and Resistance zones for strong confirmation.
  • Avoid using it alone in ranging or sideways markets.
  • Always confirm entries with price action or volume indicators.

Conclusion

The Value Chart Indicator for MT4 is a smart, visual, and efficient way to determine when prices are trading far above or below their fair market value.
By applying this indicator, traders can filter out noise, spot turning points early, and enhance their entry precision.

It’s completely free to download, and once added to your MT4, it becomes an essential tool for identifying overbought and oversold zones across all markets.

Start trading smarter — download the Value Chart Indicator for MT4/MT5 today and experience the clarity of value-based trading.

Frequently Asked Questions (FAQ)

1. Does the Value Chart Indicator repaint?
No, it does not repaint after candle close.

2. Can I use it for crypto or indices?
Yes, it works across forex, crypto, and metals.

3. What’s the best timeframe?
H1 or H4 gives the most accurate results.

4. Is it beginner-friendly?
Yes, it’s simple and visual, perfect for beginners.

5. Does it work on MT5?
Yes, both MT4 and MT5 versions are available.