The Heiken Ashi (HMA) histogram signals indicator for MT4 provides easy-to-read forex signals based on the popular Heiken Ashi.
This histogram is colored either green or red.
- A green Heiken Ashi histogram represents a buy signal.
- A red Heiken Ashi histogram represents a sell signal.
The indicator works for scalping, day trading and swing trading purposes.
When used as a stand-alone forex indicator, it’s recommended to change the “HMA period to use” to values above 50.
This will reduce the number of false signals significantly.
You can combine the indicator with an oscillator to pinpoint entry signals faster.
Make sure to take signals from the oscillator in the direction of the underlying Heiken Ashi histogram trend.
Feel free to experiment with the different indicator’s inputs settings to suit your needs and preferences.
Free Download
Download the “HMA Histo 1.01 (mtf + alerts + lines).mq4” MT4 indicator
Indicator Chart (GBP/USD H1)
The GBP/USD H1 chart below displays the Heiken Ashi Histogram Signals Metatrader 4 forex indicator in action.
Basic Trading Signals
Signals from the Heiken Ashi Histogram Signals MT4 forex indicator are easy to interpret and go as follows:
Buy Signal: Open a buy trade when the Heiken Ashi histogram changes its color from red to green (bullish trend).
Place a stop loss below short-term support or use your own preferred SL method.
Sell Signal: Open a sell trade when the Heiken Ashi histogram changes its color from green to red (bearish trend).
Place a stop loss above short-term resistance or use your own preferred SL method.
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
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (time frame to use, HMA period to use, price to use, HMA average type, HMA speed, alerts) Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Type: RSI signals
