The Snake Border Cloud Signal Metatrader 4 indicator consists of two colored trading zones.
An olive colored trading zone and a blue colored trading zone, “the snake cloud”.
Trading the indicator is simple to understand:
A buy signal occurs when the blue colored trading zone crosses back above the olive colored trading zone from below. Price is trading above the olive colored trading zone.
Conversely, A sell signal occurs when the blue colored trading zone crosses back below the olive colored trading zone from above. Price is trading below the olive colored trading zone.
For scalping and day trading purposes, use the indicator on low spread forex pairs (EUR/USD, GBP/USD, USD/JPY,…) during the London and New York trading sessions.
Free Download
Download the “borders-indicator.mq4” MT4 indicator
Indicator Chart (EUR/USD M5)
The EUR/USD 5-Minute chart below displays the Snake Border Cloud Signal Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Snake Border Cloud Signal MT4 forex indicator are easy to interpret and go as follows:
Buy Signal: Initiate a long trade when the blue colored trading zone crosses back above the olive colored trading zone from below and price is trading above the olive colored trading zone.
Sell Signal: Initiate a short trade when the blue colored trading zone crosses back below the olive colored trading zone from above and price is trading below the olive colored trading zone.
Trade Exit: Use your own method of trade exit.
Snake Border Cloud + XTC Trend Oscillator Forex Strategy for MT4
This MT4 strategy combines the cloud zone signals of the Snake Border Cloud Signal indicator with the momentum trend filter from the XTC Forex Trend Indicator.
The Snake Border Cloud highlights moments when price shifts from one zone into another, which often marks the beginning of a new trend.
The XTC Trend histogram confirms whether momentum supports the direction of the breakout.
The strategy works well on M5, M15, and H1. It is suitable for intraday traders who want clean and structured signals.
It helps avoid unnecessary trades by waiting for both the zone transition and momentum confirmation.
It can be applied on most major or cross pairs as long as clean zone movement is visible.
Buy Entry Rules
- Wait for the Snake Border Cloud blue trading zone to move up above the olive zone with price closing above the olive zone.
- Confirm that the XTC Trend histogram turns blue at the same moment or just after.
- Enter a buy at the opening of the next candle.
- Place a stop loss a few pips below the recent swing low or below the lower edge of the olive zone.
- Set take profit at a one to two risk reward target or target the next meaningful resistance level.
- A trailing stop can also be used if momentum remains strong.
Sell Entry Rules
- Wait for the Snake Border Cloud blue zone to drop under the olive zone and for price to close below the olive zone.
- Confirm that the XTC Trend histogram turns red.
- Open a sell position at the next candle open.
- Place a stop loss above the recent swing high or above the upper boundary of the zone that was crossed.
- Take profit at a one to two risk reward setup or target the next support level.
- A trailing stop works well when bearish momentum continues.
Advantages
- Combines price zone transitions with momentum confirmation which reduces many weak signals that appear in choppy markets.
- Signals are clear and easy to understand when price shifts from one zone to another.
- Works with many currency pairs and timeframes.
- Flexible take profit options make it suitable for short or extended moves.
- Risk is defined clearly through structural stop placement.
Drawbacks
- Momentum confirmation can arrive late, reducing the distance available for a profitable move.
- The strategy produces fewer signals because both indicators must align, so impatient or aggressive traders may find it restrictive.
- Trailing stops require judgment and timing, so beginners may struggle to apply them with consistency.
Case Study 1
On EURUSD M15 during the New York session, the pair moved inside the Snake Border Cloud zones without a clear direction.
A shift appeared when the blue zone pushed above the olive zone and the candle closed firmly above that area.
At the same moment, the XTC Trend histogram printed blue bars, signaling that bullish momentum had entered the market.
A long trade was opened at the next candle.
Stop loss was placed 10 pips below the lower olive zone and a one to two risk reward target was selected.
As the session progressed, EURUSD climbed steadily toward a resistance level visible on the H1 chart.
The take profit was triggered at 26 pips.
This trade followed all rules: full zone transition, momentum confirmation, structured stop placement, and exit at a clear resistance level.
Case Study 2
On USDCHF H1, the pair had been ranging for several hours.
A bearish transition started when the blue cloud zone dropped below the olive zone and price closed under the zone.
XTC Trend quickly printed red bars, showing that bearish pressure had taken control.
A short entry was taken at the opening of the next candle.
The stop loss was positioned 14 pips above the upper boundary of the cloud.
The take profit goal was set at the next higher timeframe support level for a one to three risk reward structure.
Over the next few hours, USDCHF fell sharply during increased market activity.
Price reached the projected H4 support area and the trade closed with a 42 pip profit.
Strategy Tips
- Avoid entries when the zone shift is unclear or when price is stuck inside overlapping zones.
- On volatile pairs, use slightly wider stops but balance them with higher take profit targets.
- Use a trailing stop only when the XTC histogram continues to support the trade direction.
- Avoid trading around major economic releases because price may cut through zones without commitment.
- Test the strategy on multiple pairs and then focus on those that produce the clearest zone transitions.
- Limit the number of trades each day and wait only for full alignment of both indicators.
Download Now
Download the “borders-indicator.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (max period, min period, show signals) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend
