About the MACD Cloud Forex Indicator
The MACD Cloud Indicator for MT4 is a unique variation of the traditional MACD, designed to improve trend and momentum recognition using color-coded clouds.
It visually shows the strength and direction of the trend using cloud thickness, color shifts, and signal line crossings—helping traders spot high-probability trade setups with minimal noise.
Key Features of the MACD Cloud Indicator
- Dynamic MACD-based trend cloud for clear visual signals
- Color-coded zones: Green for bullish momentum, Red for bearish
- Improved entry and exit signals compared to classic MACD
- Ideal for trend following, momentum scalping, and swing trading
- Lightweight, non-repainting, and works on all timeframes
How It Works
The MACD Cloud Indicator plots a colored cloud between the MACD and signal lines.
When the cloud turns green, it suggests bullish strength and a potential buy zone.
When it turns red, it indicates bearish pressure and a potential short opportunity.
The thickness of the cloud represents momentum—thicker clouds suggest stronger trends.
Free Download
Download the “all-macd-adaptive-mtf-indicator.mq4” indicator for MT4
Benefits of Using the MACD Cloud Indicator
- Enhanced visibility of trend reversals and continuations
- Reduces noise from smaller fluctuations
- Great for confirming breakout trades
- Visually intuitive for beginners
- Can be used as a confirmation tool alongside price action
Indicator Example Chart (EUR/USD Daily)
How to Trade Using This Indicator
Here’s a basic strategy to apply the MACD Cloud indicator effectively:
- Entry Point: Go long when the cloud turns green and is rising. Go short when the cloud is red and expanding downward.
- Stop Loss: Place SL below the recent swing low (for buys) or above the swing high (for sells).
- Take Profit: Use prior support/resistance or trailing stop based on cloud contraction or a fixed 1:2 or 1:3 risk-to-reward ratio.
Download Now
Download the “all-macd-adaptive-mtf-indicator.mq4” indicator for Metatrader 4
MACD Cloud + ADX Candles Buy/Sell Strategy for MT4
This powerful trading strategy combines the trend-following and momentum-tracking capability of the MACD Cloud Forex Indicator with the clarity of directional strength provided by the ADX Candles Buy/Sell Forex Indicator.
The goal is to capture strong, sustained price moves by aligning trend signals with momentum-confirmed candlesticks.
Ideal for M15 to H1 timeframes, this system is well-suited for trend traders who want to avoid sideways markets and low-quality setups.
What Is This Strategy About?
The MACD Cloud Indicator displays the classic MACD histogram and signal line as a colored “cloud” on the chart, helping traders easily visualize bullish or bearish momentum shifts.
The ADX Candles Indicator colors the price candles based on the strength and direction of the trend using the Average Directional Index (ADX).
When used together, traders can validate MACD-based momentum signals with the strength and clarity of ADX-colored candles for higher accuracy in entries and exits.
Buy Rules
Conditions:
- The MACD Cloud turns green, indicating bullish momentum and a potential uptrend.
- ADX Candles are also green, showing strong trend strength in the bullish direction.
Entry:
Enter a buy trade when both the MACD Cloud and the ADX Candles agree on a bullish setup.
Stop Loss:
Place the stop loss below the recent swing low or just beneath the MACD Cloud support area.
Take Profit:
Use a 1:2 or 1:3 risk-reward ratio, or exit the trade when the MACD Cloud starts to fade or the candles turn neutral/red.
Sell Rules
Conditions:
- The MACD Cloud turns red, signaling bearish momentum and a downtrend.
- ADX Candles are red, confirming strong bearish trend pressure.
Entry:
Open a sell trade when both indicators align in a bearish direction.
Stop Loss:
Place stop loss above the recent swing high or the MACD Cloud resistance zone.
Take Profit:
Use fixed targets or close the trade when the MACD Cloud fades or candles shift color to neutral/bullish.
Advantages
- Double confirmation helps filter out false signals and noisy market moves.
- Visually intuitive setup using cloud coloring and candle shading.
- Works well on trending markets and minimizes exposure during sideways conditions.
- Suitable for traders who prefer technical clarity and less subjectivity.
Drawbacks
- May lag slightly due to MACD smoothing, especially during fast reversals.
- Not ideal in low-volatility or range-bound conditions.
- Fewer trade setups due to strict confirmation rules.
Strategy Conclusion
The MACD Cloud + ADX Candles Buy/Sell Strategy is a solid, trend-focused method that helps traders stay aligned with strong market movements.
The MACD Cloud Indicator offers a visual representation of momentum shifts, while the ADX Candles Indicator confirms trend strength using color-coded candles.
When both tools signal in the same direction, traders can confidently execute with reduced risk of false breakouts or reversals.
Examples & Insights
For instance, during a strong London session breakout, if the MACD cloud shifts to green and expands with price breaking a resistance zone, this could be a powerful confirmation to enter a buy trade.
The cloud also filters out choppy moves by only showing clear momentum phases.
Pros and Cons
| Pros | Cons |
|---|---|
| Highly visual trend and momentum filter | Not a standalone signal generator |
| Reduces noise from small MACD crossovers | Best used with price action or S&R levels |
Indicator Specifications
| Indicator Name | MACD Cloud Forex Indicator |
|---|---|
| Platform | MetaTrader 4 (MT4) |
| Indicator Type | Momentum / Trend-Following |
| Repaint | No (non-repainting) |
| Inputs |
|
Final Words
The MACD Cloud Indicator for MT4 offers a clean, cloud-based approach to tracking trend momentum.
Whether you’re looking to improve your entry timing or confirm existing signals, this tool adds a powerful visual layer to your trading system.
Use it wisely, and let the cloud lead you into higher-probability setups.
