Introduction to the Forex Cloud Indicator
The Forex Cloud indicator is a spectacular trend-following forex indicator providing a simple and readable visual display.
The core of that indicator is the “CLOUD”, which consists of squares or boxes reflecting market trend-momentum.
For bullish trend confirmation, the price bars must be closed above the cloud level and the color of the cloud should be turned into green. Similarly, for bearish trend confirmation, the price bars must be closed below the cloud level and the color of the cloud should be turned into red.
It fits all kinds of timeframes and currency pairs.
The indicator is displayed directly on the main trading chart.
The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
How does it work? How to apply in trading?
Trading Rules Explanation
Signals provided by the Forex Cloud Indicator are really intuitive and will not cause you difficulties. Simply follow the suggestions below.
Buy Entry: A buy entry point (long trade) occurs when the Forex Cloud indicator turns green and the price breaks the cloud to the upside. Place your stop loss a few pips below the last swing low.
Sell Entry: A sell entry point (short trade) occurs when the Forex Cloud indicator turns red and the price breaks the cloud to the downside. Place your stop loss a few pips above the swing high.
Exit Trade / Take Profit: Close your open position when the opposite signal occurs, or use your own preferred method of trade exit.
The usual profit target should be at least 1:2 compared to the risk:reward ratio incurred over each trade.
As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.
Example of EUR/USD H1 Chart
This screenshot below shows an example of the Forex Cloud Indicator in action.
How to set up the Forex Cloud indicator in MT4?
Copy and paste the forex-cloud-indicator.ex4 or forex-cloud-indicator.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
The Forex Cloud indicator is well worth adding to your trading collection but remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it.
Forex Cloud Indicator Free Download
To download the Forex Cloud Indicator for Metatrader 4 (MT4) for free just click the button below: