Forex Cloud Indicator is an ultimate trend calculator for modern day-traders. For its simpler visual display and easy method of application, many more day traders are using it as their first choice to examine the market trend and to take the trade-decisions as well.
This indicator has been specially designed for intraday traders. Thus, it works best at hourly timeframe charts. Besides, it can be applied to trade all kind of Forex currency pairs available at MT4 terminal.
Forex Cloud Indicator Overview
After you finish installing the Forex Cloud Indicator at your Forex MT4 terminal, your trading chart will appear as the following image:
This indicator plots cloud shadows of variant colors at the main chart window to signal the possible market trends. For a bullish trend confirmation, the price bars must be closed above the cloud level and the color of the cloud should be turned into yellow. Contrarily, price holding its position below the cloud area and turns itself into red signals the short entry along with the confirmation of a bearish trend. The usual profit target should be 1:2 compared to the risk: reward ratio incurred over each trade. That means if your loss budget is 50 pips then your profit target should be 100 pips.
Forex Cloud Indicator: Buy Parameters
- Price bar closes as a bullish bar above the indicator’s cloud area
- The cloud indicator turns yellow
- Buy triggers at the break of the respective bullish bars high
- Set stop-loss right below the upper channel of the cloud
- Take profit/exit long after your trade hits 1:2 risk to reward ratio
Recommended Reading: Best Forex Strategy Ever
Forex Cloud Indicator: Sell Parameters
- Price bar closes as a bearish bar below the indicator’s cloud area
- The Cloud Indicator turns red
- Sell triggers at the break of the respective bearish bars low
- Set stop-loss right above the lower channel of the cloud
- Take profit/exit short after your trade hits 1:2 risk to reward ratio
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