About the Buy & Sell Cloud Indicator
The Buy & Sell Cloud Indicator for MT4 is a trend following cloud based tool designed to help traders stay aligned with the dominant market direction.
It plots a dynamic colored cloud directly on the chart, shifting between bullish and bearish states as price action changes.
When price trades above the green cloud, the indicator signals a bullish environment where buy opportunities take priority.
When price moves below the red cloud, the market bias turns bearish and sell setups become the focus.
Because the cloud responds to price behavior, it naturally filters out many low quality counter trend trades.
Traders often use the Buy & Sell Cloud Indicator as a core trend filter combined with price action or momentum confirmation.
Free Download
Download the “forex-cloud-indicator.ex4” MT4 indicator
Key Features
- Automatically generates color-coded cloud zones to define trend direction.
- Functions as a dynamic support and resistance barrier for price action.
- Adapts to market volatility to provide accurate trend identification.
- Simplifies the chart by replacing multiple lagging indicators with a single visual zone.
- Provides real-time updates to reflect the most current market sentiment.
Indicator Chart
The Buy Sell Cloud Indicator chart shows the interaction between the current price and the automated trend zones.
It demonstrates how the indicator plots a green cloud during bullish phases and transitions to a red cloud when the market enters a bearish trend, confirming the shift in momentum.
Guide to Trade with Buy & Sell Cloud Indicator
Buy Rules
- Wait for the indicator to draw a green cloud on the chart.
- Confirm that the candlestick is trading fully above the green cloud.
- Enter a buy trade after a bullish candle closes above the cloud.
- Avoid buy trades if price moves back inside the cloud.
Sell Rules
- Wait for the indicator to draw a red cloud on the chart.
- Confirm that the candlestick is trading fully below the red cloud.
- Enter a sell trade after a bearish candle closes below the cloud.
- Avoid sell trades if price moves back inside the cloud.
Stop Loss
- Place the stop loss just below the green cloud for buy trades.
- Place the stop loss just above the red cloud for sell trades.
- Trail the stop loss along the cloud during strong trends.
Take Profit
- Close the trade when the cloud changes color against your position.
- Alternatively, target recent support or resistance levels.
- Use a minimum risk to reward ratio of 1:2 for consistency.
Buy Sell Cloud and Elite Pro Scalper MT4 Scalping Strategy
This MT4 scalping strategy combines the strengths of the Buy Sell Cloud MT4 Forex Indicator and the Elite Pro Scalper Indicator MT4 to create a clear and disciplined trading approach.
The strategy is designed for traders who want fast and precise entries while staying aligned with the dominant market direction.
The Buy Sell Cloud acts as the trend filter. It visually shows whether the market is bullish or bearish and helps traders avoid trading against momentum.
The Elite Pro Scalper is used for timing. It delivers sharp buy and sell arrows that are suitable for short-term trading.
This combination works best on lower time frames such as M5 and M15.
It is suitable for major forex pairs and gold where volatility is consistent.
Beginners benefit from the visual clarity while experienced scalpers appreciate the strict rule-based structure.
Buy Entry Rules
- The Buy Sell Cloud must be green, confirming a bullish market environment.
- Wait for a blue buy arrow from the Elite Pro Scalper on the active candle.
- Enter a buy trade at the close of the signal candle.
- Place the stop loss a few pips below the most recent swing low or below the cloud.
- Set the take profit at a fixed 1:1.5 or 1:2 risk to reward ratio or at the next visible resistance level.
Sell Entry Rules
- The Buy Sell Cloud must be red, confirming a bearish market environment.
- Wait for a red sell arrow from the Elite Pro Scalper on the active candle.
- Enter a sell trade at the close of the signal candle.
- Place the stop loss a few pips above the most recent swing high or above the cloud.
- Set the take profit at a fixed 1:1.5 or 1:2 risk to reward ratio or at the next visible support level.
Advantages
- Clear trend direction using the Buy Sell Cloud reduces false trades.
- Precise entry timing from the Elite Pro Scalper improves accuracy.
- Simple visual rules make the strategy easy to follow.
- Works well for fast-paced scalping sessions.
- Can be applied to multiple currency pairs and gold.
Drawbacks
- Not suitable for ranging markets with low volatility.
- Requires discipline to wait for full confirmation.
- Scalping demands active monitoring of the charts.
- Performance may vary during major news events.
Case Study 1
On EURUSD M5 during the London session, the Buy Sell Cloud turned green and price started making higher lows.
Shortly after, the Elite Pro Scalper printed a blue buy arrow.
A buy trade was entered with a 10 pip stop loss below the recent swing low.
The take profit was set at 18 pips.
Price moved steadily in the bullish direction and the trade closed in profit within 25 minutes.
Case Study 2
On GBPJPY M15, the Buy Sell Cloud changed to red after a strong bearish push.
A red sell arrow from the Elite Pro Scalper appeared during a pullback.
A sell trade was placed with a 15 pip stop loss above the cloud.
The take profit target was 30 pips near a previous support zone.
The market resumed its downward move and the target was hit before the end of the session.
Strategy Tips
- Always read the cloud first before looking at any arrow signal. A green cloud confirms bullish control while a red cloud confirms bearish control.
- Only take Elite Pro Scalper signals that appear in the same direction as the cloud. This alignment filters out low-quality countertrend trades.
- Focus on liquid trading sessions such as London and New York where scalping signals have higher follow-through.
- Avoid entering trades when price is moving sideways inside a very narrow range, even if arrows appear.
- Use recent swing highs and lows for smarter stop loss placement rather than fixed pip values in volatile markets.
- If multiple arrows appear without clear price movement, stay out and wait for a clean setup.
- Close trades early if price action shows strong rejection against your position near key support or resistance levels.
- Risk a small and consistent percentage per trade to maintain long-term stability when scalping.
Download Now
Download the “forex-cloud-indicator.ex4” Metatrader 4 indicator
FAQ
Should the cloud be used alone or with confirmation?
The cloud can be traded on its own, but many traders combine it with price action or momentum tools to refine entries.
How does trailing the stop with the cloud improve results?
Trailing the stop along the cloud helps lock in profits during large directional moves while allowing the trend to develop.
Summary
The Buy Sell Cloud Indicator is a robust technical solution that provides exceptional clarity for trend-following traders.
Using a visual cloud to represent market momentum allows you to quickly assess whether the buyers or sellers are in control.
Its primary benefit is its ability to act as a dynamic support and resistance zone, giving you clear parameters for entry and exit.
