Forex Cloud Indicator

The above EURUSD H1 candlestick price chart shows the Forex cloud indicator for MT4 in action. The indicator plots the bullish cloud in green and bearish cloud in red. Additionally, the outer layers of the cloud are in silver.

The trading signals are pretty simple and are based on the crossover of the price and the cloud. If the price closes higher than the cloud and if the cloud color is green, then traders should enter the markets with a buy trade. A stop loss below the cloud is sufficient to secure the trade, however traders should exit the position in profits at an opposite trading signal.

Similarly, if the candlestick closes below the red bearish cloud it indicates the beginning of a down trend. So, forex traders should place a sell position.

Conclusion

The Forex cloud indicator is a simple and efficient indicator for trend following. The simple to use bullish and bearish cloud helps both new and advanced technical traders.