Andean Oscillator Indicator: Envelope Variance in a Pane

Written by Dominic Walsh · Published 29 Jul 2026 · Last updated 20 Aug 2026

The Andean Oscillator Indicator brings the envelope method of Alex Grover to MetaTrader. It draws in a pane below price. Two envelopes track price and price squared on each side of the market. Their running variance yields a Bullish line, a Bearish line and a slower Signal line.

This build ships as andean-oscillator-indicator-mt5-indicator-forexmt4systems.ex4 for MT4 and andean-oscillator-indicator-mt5-indicator-forexmt4systems.ex5 for MT5; the screenshots below come from EURUSD H1.

Platforms	MT4 (.ex4) + MT5 (.ex5)
Chart window	Separate window
Plots	3: Bullish, Bearish, Signal
Alerts	popup, push notification, email, sound
Inputs	8

What the Andean Oscillator Indicator draws on the chart

Three lines share one sub-window. Bullish runs lime green. Bearish runs orange red. Signal draws thinner in goldenrod. None of them sit over the candles, so price stays clean.

Bullish and Bearish gauge strength, not direction. Both stay above zero. The one on top shows which side drives the market. A wide gap means a one-sided move.

Signal smooths the leader. Each bar it takes the larger of the two, then runs an average over that series. A rising Signal line means the top side keeps building.

• Bullish: line, lime green, width 2
• Bearish: line, orange red, width 2
• Signal: line, goldenrod, width 1

How the Andean Oscillator Indicator calculates its values

Two envelopes per side

Envelopes come first. The up side keeps a running max of close, open and a decayed copy of the last value. The down side keeps the running min in the same shape. Each side tracks price and price squared. That second track is what makes the variance step work.

Variance into two lines

Variance closes the loop. Bullish takes the square root of the squared-price envelope minus the square of the plain one, on the down side. Bearish does the same on the up side. That square root acts as a standard deviation of the pair.

Length drives the decay rate, and 50 ships as the default window. Longer settings make both envelopes give up ground slowly. The pane then calms down.

Cross tests on closed bars

Crosses drive the messages. The guard looks at the last two closed bars. Bullish rising above Bearish counts as a bull cross. The mirror counts as a bear cross. Only one message goes out per bar.

How to read the signals

Read the top line first. While Bullish sits above Bearish, buyers hold the edge. A wider gap means a firmer grip. When the two swap places, control has changed hands.

Signal adds context. Both lines above a falling Signal line often means the move runs out of fuel. Both below a rising one points to a market waking up.

Raw levels mean little. The two lines scale with the price of the market you load. Judge them against their own recent range, not a fixed number.

Alert channels in this build: popup, push notification, email and sound, one message per closed bar.

EnableAlerts runs the block, and popup, push notification, email and sound sit on their own switches. A cross between Bullish and Bearish sends one message per closed bar.

Every Andean Oscillator Indicator input

Core settings

Setting	What it does	Default
Length	envelope length. Sets the envelope decay through a 50 bar equivalent; longer windows calm the pane.	50
SigLength	signal EMA length. Smooths the leading line over nine bars; raise it for a slower cue.	9

Alert settings

Setting	What it does	Default
EnableAlerts	(see inputs panel)	on
EnablePopup	(see inputs panel)	on
EnablePushNotify	(see inputs panel)	off
EnableEmail	(see inputs panel)	off
EnableSound	(see inputs panel)	off
SoundFile	(see inputs panel)	alert.wav

Settings that fit your chart

This kind of tool suits liquid, trending markets. The shots pair EURUSD H1 with the pane so both parts fit one picture. Gold and index CFDs swing wider, so both lines run larger. On M1 the envelopes reset all the time and the pane turns choppy. H4 and D1 give slow, clean crosses that swing traders can act on.

When the Andean Oscillator Indicator fails

Crosses arrive after the turn. Both lines come from decaying envelopes. A sharp reversal needs several bars before they swap places.

Quiet markets flatten the pane. When range dries up, the two lines meet and cross on tiny moves. The alert fires each time.

The scale does not travel. A reading that looks large on gold means nothing on a currency pair. The maths works in the price units of that market.

This pane says nothing about levels. It gauges pressure, not place. Pair it with structure before you act on a cross.

Copy andean-oscillator-indicator-mt5-indicator-forexmt4systems.ex4 into MQL4/Indicators and andean-oscillator-indicator-mt5-indicator-forexmt4systems.ex5 into MQL5/Indicators, then restart the terminal and drag the Andean Oscillator Indicator onto a chart. The step-by-step guide with screenshots is at how to install MT4 and MT5 indicators.

Download the Andean Oscillator Indicator for MT4 and MT5

The zip andean-oscillator-indicator-mt5-indicator-forexmt4systems.zip holds andean-oscillator-indicator-mt5-indicator-forexmt4systems.ex4, andean-oscillator-indicator-mt5-indicator-forexmt4systems.ex5 and a short README, compiled files only. Enter your email below and the download link arrives in your inbox.

FAQ

Why do Bullish and Bearish both stay above zero?

Each line comes from a square root, and a square root never returns a minus figure. Direction shows up in which line sits higher. A falling Bullish line still means buying pressure fading, even while it stays above zero. Read the pair, not the sign.

What does the Length setting change in the pane?

It sets the decay of the four envelopes. At the shipped value each one gives up ground slowly. The lines then answer to steady pressure rather than single bars. A shorter window makes both twitchy and adds crosses. A longer one flattens the pane and delays every turn.

How does the Signal line differ from Bullish and Bearish?

Signal acts as no third line of its own. Each bar the code takes whichever of the two runs larger, then averages that series over nine bars. The result tracks the top side rather than either one alone. Traders use it as a slow check on whether pressure keeps building.

Does this tool sit in its own pane below EURUSD H1?

Yes. The build asks for a separate window, so the three lines sit under the candles. That keeps the price chart clean and lets the pane scale to its own range. Drag the divider to give it more height when the two lines run close together.

Are results guaranteed?

No. Trading involves risk. Results are not guaranteed; past performance is not indicative of future results. Use the Andean Oscillator Indicator as one input. Always backtest before trading live.