The Aroon Horn Scalper MT4 indicator is a great scalping oscillator indicator that works great for scalping currency pairs.
The Aroon Horn oscillates above and below its neutral zero line, this creates a short-term bullish or bearish trend.
Blue histogram bars aligned above the zero line are considered bullish while red bars below the zero line bearish.
It’s extremely important to use the Aroon Horn Scalper MT4 indicator in agreement with a trend trading indicator.
You’ll need to take scalp trades at the right side of the overall trend and ignore trading against the trend.
For instance, combine with a 75 period simple moving average or 50 period exponential moving average.
First, determine trend direction. This is a simple process and visible on the chart.
The overall trend is said to be bullish when price bars are positioned above the moving average.
Conversely, the overall trend is said to be bearish when price bars are positioned below the moving average.
Second, trade signals from the Aroon Horn Scalper in the direction of the overall trend (explained below under basic trading signals).
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Download the “custom-aroon-horn-oscillator.mq4” MT4 indicator
Indicator Chart (EUR/USD M15)
The EUR/USD 15-Minute chart below displays the Aroon Horn Scalper Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Aroon Horn Scalper MT4 forex indicator are easy to interpret and go as follows:
Buy Signal: Initiate a long scalp trade when the indicator draws the first blue bar above the zero level (short-term bullish).
Sell Signal: Initiate a short scalp trade when the indicator draws the first red bar below the zero level (short-term bearish).
Trade Exit: Use your own method of trade exit.
Aroon Horn and XTC Trend Indicator MT4 Scalping Strategy
This MT4 strategy combines the Aroon Horn Scalper Metatrader 4 Forex Indicator and the XTC Forex Trend Indicator MT4 to create a powerful scalping method for short-term trades.
The Aroon Horn indicator shows the strength and direction of the market trend with a blue histogram indicating buy signals and a red histogram indicating sell signals.
The XTC Forex Trend Indicator confirms these signals with its trend histogram, where blue indicates a bullish trend and red indicates a bearish trend.
This strategy works best on 5-minute and 15-minute charts, making it ideal for scalpers who want to take advantage of small price movements during active market sessions.
It can also be applied on 1-minute charts for experienced traders.
The combination of a precise entry signal from Aroon Horn and trend confirmation from XTC reduces false signals and increases the probability of successful trades.
Buy Entry Rules
- Enter a buy trade when the Aroon Horn histogram turns blue and the XTC Forex Trend histogram confirms a blue trend.
- Set the stop loss below the most recent swing low to limit risk.
- Take profit at a predefined target of 20–30 pips for 5-minute charts, or trail the stop to lock in profits as the price moves in your favor.
Sell Entry Rules
- Enter a sell trade when the Aroon Horn histogram turns red and the XTC Forex Trend histogram confirms a red trend.
- Set the stop loss above the most recent swing high.
- Take profit at a target of 20–30 pips on 5-minute charts, or use a trailing stop to capture more extended moves in a strong trend.
Advantages
- Combines two indicators for higher signal accuracy.
- Works well for scalping in fast-moving markets.
- Easy to follow with clear histogram signals.
- Can be used on multiple time frames for flexibility.
- Reduces the risk of entering trades against the trend.
Drawbacks
- Requires constant monitoring due to short time frames.
- Not suitable for long-term trading strategies.
- Smaller profits per trade compared to swing trading.
Case Study 1
On the EUR/USD 5-minute chart, the Aroon Horn histogram turned blue while the XTC Forex Trend histogram confirmed a blue trend.
A buy trade was entered at 1.1120 with a stop loss at 1.1110.
The price moved upward steadily, and the trade reached the take profit target of 1.1145, resulting in a gain of 25 pips.
The trend confirmation helped avoid entering too early and reduced the risk of a false breakout.
Case Study 2
On the GBP/USD 15-minute chart, the Aroon Horn histogram turned red while the XTC Forex Trend histogram confirmed a red trend.
A sell trade was executed at 1.3450 with a stop loss at 1.3462.
The market dropped quickly, and the position reached the 30-pip take profit target at 1.3420.
Strategy Tips
- Always check both indicators for confirmation. Aroon Horn alone may give early signals, but XTC confirms the trend direction.
- Use a small lot size when testing on new currency pairs.
- Focus on sessions with high volatility, such as London and New York.
- Combine with price action patterns for additional confidence.
- Adjust take profit and stop loss based on the time frame and volatility.
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Download the “custom-aroon-horn-oscillator.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (Aroon period, filter, count bars) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: oscillator
