The Forex Cloud indicator for Metatrader 4 is an awesome trend indicator that works really well for any currency pair.
Signals from this indicator are really simple to understand:
- A buy signal occurs when the Forex Cloud indicator turns green. Price bars are positioned above the green cloud.
- A sell signal occurs when the Forex Cloud indicator turns red. Price bars are positioned below the red cloud.
Try it for scalping, day trading and swing trading.
You can also combine the cloud indicator with an oscillator. For instance, use it together with the Slow Stochastic oscillator.
This works great to take advantage of shorter-term market movements. Great for scalping and day trading.
Here’s how it works
Buy on dips: The Forex Cloud must be green colored and the Slow Stochastic indicator crosses back above 20 from below.
Sell on rallies: The Forex Cloud must be red colored and the Slow Stochastic indicator crosses back below 80 from below.
The EUR/USD 1-Hour chart below displays the Forex Cloud Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Forex Cloud MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Open a buy trade position when the forexcloud turns green. This is a bullish trend. Place a protection stop-loss slightly below the green cloud indicator.
Sell Signal: Open a sell trade position when the forexcloud turns red. This is a bearish trend. Place a protection stop-loss slightly above the red cloud indicator.
Trade Exit : Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (timeframe) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the forexcloud-indicator.ex4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)