HMA Trend Indicator
Platform: MT4 Type: Trend Last update: September 30, 2024The HMA Trend Indicator for MT4 is, as the name suggests, a trend forex indicator based on the Hull Moving Average with two periods.
A combination of two types of Hull Moving Averages makes better use of these advantages: HMA with a slow period identifies the trend, while HMA with a fast period determines the short-term movements and signals in the trend direction.
When both of these tools agree at the same time, an arrow appears on the main forex activity chart showing the triggered trading signal.
How to use the hma trend indicator in forex trading?
As we mentioned earlier, the HMA Trend Indicator consists of three elements: Fast HMA, Slow HMA, and signal arrows. Behind the scenes, a signal is triggered on the event of HMAs crossover. If you want less noisy but more reliable signals, go to the settings of the indicator and change the option the frequency of signals in the trend direction to rare signals.
Buy Signal
Follow these steps for a long trade:
- The HMA Trend upward arrow appears on the chart
- Both Slow HMA and Fast HMA bars are blue
- 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 Trend provides opposite signal or use your own preffered method of trade exit
Sell Signal
Follow these steps for a short trade:
- The HMA Trend downward arrow appears on the chart
- Both Slow HMA and Fast HMA bars are red
- 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 Trend provides opposite signal or use your own preffered method of trade exit
