Forex Cloud Indicator
Platform: MT4 Type: Trend Last update: September 29, 2024The Forex Cloud indicator for MT4 is a spectacular trend-following forex gauge 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.
Understanding the signals of the forex cloud indicator
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.
Example of EUR/USD H1 Chart
This screenshot below shows an example of the Forex Cloud Indicator in action.
