The Smoothed Hull Moving Average MT4 indicator is an improved version of the normal HMA.
This version displays buy and sell histogram bars in a separate window below the main activity chart.
Green HMA bars for buy and orange HMA bars for sell.
This indicator can be applied to any timeframe and suits any trading style.
It does well for scalping (M1, M5), day trading (M5, M15, M30) and swing trading (H1, H4, D1).
The EUR/USD M5 chart below displays the Smoothed HMA forex indicator in action.
Basic Trading Signals
Signals from the Smoothed HMA forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy after the first green histogram bar forms.
Sell Signal: Open sell after the first red histogram bar forms.
Trade Exit: Close the open trade when an opposite signal occurs, or use your own method of trade exit.
Tip: It is a good idea to use the HMA together with a trend-following indicator, for example, a 200 period moving average would fit.
Overall trend up? Only look for HMA buy (green) trade signals. Ignore sell signals.
Overall trend down? Only look for HMA sell (orange) trade signals. Ignore buy signals.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (HmaPeriod) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Buy/Sell histogram
Copy and paste the hma-smoothed.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)