Karpenko Cloud Indicator MT5

The Karpenko Cloud Indicator for MT5 is trend gauge that displays colorful cloud directly on the trading chart. These greenish and pinkish formations refelct prevailing market trends. What’s more, these special formations allows to spot potential shifts in market-driving powers. Let’s see how to utilize them.

Trading signals of Karpenko Cloud indicator

After you activate it in your MetaTrader 5 platform, you will see these pleasantly colored irregular shapes plotted on the chart.

Karpenko Cloud Indicator Example Chart

Traders who value clearity when performing technical analysis will surely appreciate the way it works and how it provides signals. The formula behind this tool includes usage of Simple Moving Average and also custom calculations of historical price data. Such combination gives a guarantee of good market precision and higer chances of profitable results.

That’s how the readings should be interpret.

Long signal

A buy signal is triggered when the cloud color shifts from green to pink. During strong market movements, you can ride the trend until the end. It means that you can consider exiting the trade when the opposite color formation appears – that’s the sign of possible reversal.

Short signal

In this scenario analgous rules applies. A short signal occurs when the cloud color changes from green to pink. It’s good to double check and confirm sold bearish trend and then trade only in the direction of that dominant trend.


As you can see, it has a basic form of served indications, but at the same time, for most people it’s a definite advantage of this guague. Importantly, it also do not repaint past readings, making it even more reliable. Although the Karpenko can be utilized standalone, it may also serve as a great filter of trend direction which can be leveraged in conjuction of other indicators.

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