Introduction to the HMA Histogram MTF Indicator
The HMA Histogram MTF Indicator is based on Hull Moving Average and comes in handy when a trader is looking for force level of the market momentum. That gauge also signals possible trend reversals and provides potential entry points and exit points of your trades. You shouldn’t have any problems understanding provided signals, as they are really simple. Both beginners and advanced traders can try that HMA indicator.
The HMA Histogram MTF Indicator fits all kinds of timeframes and currency pairs. It is displayed in a separate window placed just below 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
The HMA Histogram MTF Indicator uses a 35-day Hull Moving Average calculated on the Linear Weighted method. You can also apply other methods for the calculations, choosing among the following: Exponential, Weighted, Smoothed, and Simple Moving Averages.
We think that a 50 Exponential Moving Average (EMA) tends to work better for intraday trading. When the histogram bars turn green, it means it recognize a bullish trend of the market. Similarly, when the bars turn red the trend is considered bearish. An increment of the indicator value reflects an increase in the strength of a trend.
Follow these steps for a long trade:
- The HMA Histogram bars turn green color
- Price swings higher from recent low swing
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the last low point of the market
- Take profit or exit trade whenever the HMA Histogram bars turn red or use your own preffered method of trade exit
Follow these steps for a short trade:
- The HMA Histogram bars turn red color
- Price swings lower from recent high swing
- Sell trade is triggered after the above conditions are met
- Set stop loss a few pips above the last high point of the market
- Take profit or exit trade whenever the HMA Histogram bars turn green or use your own preffered method of trade exit
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.
How to set up the HMA Histogram MTF indicator in MT4?
Download the HMA Histogram MTF.rar archive at the bottom of this post, unpack it, then copy and paste the HMA Histogram MTF.ex4 or HMA Histogram MTF.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 HMA Histogram MTF indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, 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.
Download Free Forex MT4 HMA Histogram MTF Indicator
To download the HMA Histogram MTF Indicator for Metatrader 4 (MT4) for free just click the button below: