About the Heiken Ashi Histogram Signals Indicator
The Heiken Ashi Histogram Signals indicator is a trend-following MT4 tool based on the logic of Heiken Ashi candles.
Instead of plotting modified candles on the price chart, this indicator converts Heiken Ashi calculations into a clean histogram displayed in a separate window.
The histogram alternates between green and red bars to reflect the current market direction.
Green bars indicate bullish pressure, while red bars indicate bearish pressure.
This approach removes much of the noise found in standard candlestick charts and helps traders focus on trend strength rather than short-term fluctuations.
When used on its own, increasing the HMA period above 50 helps smooth market movement and reduce frequent color changes.
It can also be combined with oscillators to improve timing and trade precision.
Free Download
Download the “HMA Histo 1.01 (mtf + alerts + lines).mq4” MT4 indicator
Key Features
- Heiken Ashi-based histogram displayed in a subwindow.
- Green bars indicate bullish trend conditions.
- Red bars indicate bearish trend conditions.
- Adjustable HMA period for smoother signals.
- Works across all MT4 timeframes.
- Compatible with trend and momentum indicators.
Indicator Chart
The chart shows the Heiken Ashi Histogram Signals indicator plotted below the main price chart.
Color changes in the histogram reflect shifts in trend direction and momentum strength.
Guide to Trade with Heiken Ashi Histogram Signals Indicator
Buy Rules
- The Heiken Ashi histogram bars are green.
- Histogram momentum is increasing or stable.
- Enter a buy trade after a pullback within the bullish trend.
Sell Rules
- The Heiken Ashi histogram bars are red.
- Histogram momentum is increasing or stable.
- Enter a sell trade after a retracement within the bearish trend.
Stop Loss
- Place the stop loss beyond the most recent price correction.
- Exit the trade if the histogram prints consecutive bars in the opposite color.
- Use wider stops when increasing the HMA period.
Take Profit
- Set take profit near previous trend expansion zones.
- Hold the trade while the histogram color remains unchanged.
- Close the position when momentum visibly weakens.
Heiken Ashi Histogram + 4 Moving Averages Buy-Sell Forex Scalping Strategy
This MT4 scalping strategy uses the Heiken Ashi Histogram Signals indicator together with the 4 Moving Averages Buy-Sell Signals.
The Heiken Ashi histogram provides the trend direction. Green bars indicate a bullish trend, and red bars indicate a bearish trend.
The 4 Moving Averages indicator confirms entry signals with green bars for buy signals and purple bars for sell signals.
This strategy is optimized for M1 and M5 charts, making it suitable for scalpers who look for fast, clear setups.
The Heiken Ashi indicator filters market noise, while the 4 MA indicator detects quick buy and sell signals.
When both indicators confirm the same direction, the probability of catching a strong move increases significantly.
Buy Entry Rules
- The Heiken Ashi Histogram must show green bars.
- The 4 Moving Averages indicator must show green bars.
- Enter a buy trade when both conditions align.
- Place the stop loss a few pips below the latest Heiken Ashi swing low or nearby support level, usually 8 to 15 pips.
- Take profit around 10 to 20 pips or use a trailing stop to lock in profits.
Sell Entry Rules
- The Heiken Ashi Histogram must show red bars.
- The 4 Moving Averages indicator must show purple bars.
- Enter a sell trade when both conditions align.
- Place the stop loss a few pips above the latest Heiken Ashi swing high or resistance level, usually 8 to 15 pips.
- Take profit around 10 to 20 pips or use a trailing stop on strong moves.
Advantages
- Easy-to-read color-based signals.
- Dual confirmation increases accuracy.
- Ideal for fast M1 and M5 scalping.
- Flexible exit options with fixed or trailing targets.
- Suitable for beginners due to its simplicity.
Drawbacks
- Signals can conflict during sideways market conditions.
- Small stop losses may be hit during volatility spikes.
Case Study 1
On EURUSD M1 during the London session, the Heiken Ashi Histogram turned green, signaling growing bullish momentum.
Shortly after, the 4 Moving Averages indicator also printed green bars.
A buy order was placed when both indicators aligned. The stop loss was set 12 pips below the latest swing low.
The price climbed steadily, and the 15 pip take profit was reached within minutes.
Case Study 2
On GBPUSD M5, the Heiken Ashi histogram switched to red, showing increasing bearish pressure.
Moments later, the 4 Moving Averages indicator printed purple bars, confirming downside movement.
A sell trade was opened with a stop loss 10 pips above the swing high.
The pair dropped quickly and reached the 18 pip target.
Strategy Tips
- Avoid trading when both indicators switch colors rapidly, as this means the market is choppy.
- Use a trailing stop after reaching at least 10 pips profit to protect gains.
- Combine this strategy with a higher timeframe trend check for extra filtering.
- Backtest on different pairs to optimize stop loss and take profit levels.
- Stick to low-spread pairs to maximize scalping profits.
Download Now
Download the “HMA Histo 1.01 (mtf + alerts + lines).mq4” Metatrader 4 indicator
FAQ
How does this indicator differ from standard Heiken Ashi candles?
This indicator converts Heiken Ashi calculations into a histogram, making trend direction easier to read without altering the price chart.
What HMA period is recommended?
Values above 50 are recommended when using the indicator alone, as higher periods smooth out noise and reduce false signals.
Can this indicator be combined with oscillators?
Yes, oscillators such as RSI or stochastic can help refine entries when traded in the direction of the histogram trend.
Summary
The Heiken Ashi Histogram Signals indicator offers a simplified way to trade trends using Heiken Ashi logic.
Its color-coded histogram removes unnecessary noise and highlights directional bias clearly.
With adjustable smoothing, multi-timeframe compatibility, and flexibility to work alone or with other indicators, it serves as a reliable trend filter for a wide range of MT4 trading strategies.
