The Holt double exponential smoothing trend Metatrader 4 indicator is a great oscillator for predicting short-term bearish and bullish moves.
This indicator includes a trend component in its code.
Similarly to other trading oscillators:
Above the zero level (green bars), price is said to be in bullish and traders look for buy trade opportunities.
Below the zero level (orange bars), price is said to be bearish and traders look for sell trade opportunities.
It is recommended to use the Holt indicator together with a trend-following indicator.
Scalpers could use the Holt indicator as a standalone.
For example, buy and sell for 5-15 pips profit target on each trade using the shorter-timeframe’s such as the 5 min trading charts.
The USD/JPY H1 chart below displays the Holt double exponential smoothing trend forex indicator in action.
Basic Trading Signals
Signals from the Holt double exponential smoothing trend oscillator are easy to interpret and goes as follows:
Buy Trade: Open buy order when the Holt oscillator crosses back above the 0.00 zero level from below (from orange to green bars).
Sell Trade: Open sell order when the Holt oscillator crosses back below the 0.00 zero level from above (from green to orange bars).
Exit Trade: Close trades at an opposite signal, or use your own preferred exit method.
Tip: Use this indicator in conjunction with a trend-following indicator (SMA, EMA, BB,…) if you want to buy dips and sell rallies in the trend.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (Estimate Period, Trend Period, Price, Forecast Bars, Alerts, Push Notification) 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 Holt_double_exponential_smoothing_trend.mq4 indicator 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)