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 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:
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
- 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
- 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