Hooded Trader Indicator

Hooded Trader Indicator has been designed with an aim to bring simplicity to daily trading life, especially for short-term traders. It uses only a separate oscillator window to demonstrate the trend-based trade signals which can be read by traders with any level of trading experience.

The Indicator works great on major currency pairs like EURUSD, GBPUSD, AUDUSD, USDJPY, etc. As a scalping indicator, this tool suits best shorter timeframe charts like M1 to M15 within the MT4 forex trading platform.

Hooded Trader Indicator: Explanation

After the installation at the MT4 terminal, the indicator appears as the following image:

Hooded Trader Indicator Overview

Hooded Trader Indicator applies a 20-day period average DAX slope which determines the trend levels. The indicator value drops below the average line and turns red means the trend has turned bullish. For a bearish trend confirmation, the indicator value must be risen above the average line and turned into blue. Please see the example below:

Hooded Trader Indicator Explanation

Trades can be triggered once a trend is confirmed by the indicator. Usually, short-term trading indicators react faster than long-term trading indicators.

The hooded Trader Indicator is a bit exceptional in this case. It works a bit slower than it is supposed to but offers trade signals with better confirmations and greater probabilities of success.

Continue Reading: CAP Channel MT4 Indicator

Hooded Trader Indicator: Trading Rules

Buy Entry

Hooded Trader Buy Entry
  • Hooded Trader Indicator value drops below the average line and turns into red color
  • A bullish price bar forms at the same time
  • Buy at the break of the respective bar’s high
  • Set stop loss below the nearest swing low of the market
  • Exit long or take profit whenever the indicator value turns above the average line

Sell Entry

Hooded Trader Sell Entry
  • Hooded Trader Indicator value moves above the average line and turns into blue color
  • A bearish price bar forms at the same time
  • Sell at the break of the respective bar’s low
  • Set stop loss above the nearest swing high of the market
  • Exit short or take profit whenever the indicator value turns below the average line
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