About the Heiken Ashi Signal Cloud Indicator
The Heiken Ashi Signal Cloud indicator for MetaTrader 4 offers clear visual signals for market entries and exits.
It displays green and red Heiken Ashi candles above or below the actual price candles, creating a “cloud” effect that highlights potential bullish or bearish moves.
A green signal appears below the price, indicating a buying opportunity, while a red signal above the price points to a potential sell.
Traders can follow these signals to open trades and reverse positions as the cloud changes color.
Free Download
Download the “heiken ashi exit.ex4” indicator for MT4
Key Features
- Displays Heiken Ashi signal candles above or below the price
- Green candles signal potential buy entries
- Red candles signal potential sell entries
- Allows quick trend reversal identification
- Works on all MT4 time frames and currency pairs
Indicator Chart
The Heiken Ashi Signal Cloud indicator shows green and red Heiken Ashi candles overlaying the main MT4 chart.
Green signals appear below the price, while red signals appear above the price.
Traders use these cloud signals to determine entries, trend direction, and when to reverse positions.
Guide to Trade with Heiken Ashi Signal Cloud Indicator
Buy Rules
- Enter a buy trade when a green Heiken Ashi candle appears below the price
- Hold the trade while consecutive green signals appear
Sell Rules
- Enter a sell trade when a red Heiken Ashi candle appears above the price
- Stay in the trade while consecutive red signals continue
Stop Loss
- For buy trades, place the stop just below the recent green signal candle
- For sell trades, place the stop just above the recent red signal candle
- Use cloud boundaries as natural references for safer stops
Take Profit
- Set the first target near the next support or resistance level
- Trail stops following the color of the Heiken Ashi cloud
- Exit if the cloud reverses color against your trade
Practical Trading Tips
- Trade only when the cloud color is clear and consistent.
- Scale positions according to volatility.
- Use cloud reversals to plan both entries and exits efficiently.
Heiken Ashi Signal Cloud + Zone Trade MT4 Scalping Strategy
This ultra-fast scalping strategy combines the Heiken Ashi Signal Cloud Indicator (MT4) with the Zone Trade Forex Scalper Indicator (MT4).
The Heiken Ashi Signal Cloud gives trend direction: green candle clouds indicate bullish momentum and red clouds indicate bearish momentum.
The Zone Trade Scalper confirms precise entries: green signals for buys and red for sells.
This setup is designed for ultra-fast scalping on M1 to M5 charts.
The goal is to capture small, quick moves of 5–10 pips.
It is ideal for traders who want high-frequency entries with strict risk management and minimal exposure.
Buy Entry Rules
- Heiken Ashi Signal Cloud must show a green candle cloud, indicating a bullish trend.
- Zone Trade Scalper must display a green candle signal for confirmation.
- Enter at the close of the confirmation candle from the Zone Trade Scalper.
- Stop loss: place 3–5 pips below the most recent swing low or below the low of the entry candle.
- Take profit: target 5–10 pips depending on pair volatility. Exit immediately upon reaching the target.
Sell Entry Rules
- Heiken Ashi Signal Cloud must show a red candle cloud, indicating a bearish trend.
- Zone Trade Scalper must display a red candle signal for confirmation.
- Enter at the close of the confirmation candle from the Zone Trade Scalper.
- Stop loss: place 3–5 pips above the most recent swing high or above the high of the entry candle.
- Take profit: target 5–10 pips. Exit immediately once the target is reached.
Advantages
- Ultra-fast scalping allows multiple trades in short sessions.
- A combination of trend (Heiken Ashi Cloud) and precise entry (Zone Trade Scalper) reduces false signals.
- Small targets reduce exposure to larger market swings.
Drawbacks
- Requires constant attention and quick execution due to the very short time frames.
- High frequency of trades can accumulate spread costs, especially on low-liquidity pairs.
- Not suitable for traders who cannot monitor charts continuously.
Example Case Study 1 — EUR/USD M1 (Bullish)
On the M1 EUR/USD chart, the Heiken Ashi Signal Cloud turns green, and the Zone Trade Scalper gives a green candle confirmation.
Entry is taken at the close of the confirmation candle.
Stop loss is placed 3 pips below the entry candle.
Price moves quickly, reaching a 7-pip target in under 3 minutes.
Trade is exited immediately for a clean scalp.
Example Case Study 2 — GBP/JPY M5 (Bearish)
GBP/JPY on the M5 chart shows a red Heiken Ashi Signal Cloud and a red candle from the Zone Trade Scalper.
Entry is taken at the candle close, stop loss 4 pips above the entry candle.
Price moves downward rapidly, hitting a 10-pip target in 7 minutes.
Trade is closed immediately upon reaching the target.
Strategy Tips
- Focus on high-liquidity pairs with tight spreads for ultra-fast scalping.
- Use small position sizes to manage risk on frequent trades.
- Avoid trading during major news events that can cause unpredictable spikes.
- Exit trades immediately when target pips are reached; do not hold for extended moves.
- Consider using a timer or alert system to manage multiple fast trades efficiently.
- Keep a trading journal to track which pairs and time frames perform best.
Download Now
Download the “heiken ashi exit.ex4” indicator for Metatrader 4
FAQ
What do the green and red cloud signals represent?
Green candles below the price indicate potential buying opportunities, while red candles above the price suggest potential selling opportunities.
The cloud helps visualize trend strength.
Can this indicator be used on all time frames?
Yes. The Heiken Ashi Signal Cloud works on any time frame.
Higher time frames generally provide more reliable signals for trend-following strategies.
Do the cloud signals repaint?
No. Once the candle closes and the signal appears, it remains fixed. Always confirm trades after the candle closes.
How do I handle reversals?
When the cloud changes color, consider reversing your position or exiting part of your trade. Consecutive candles in the opposite color indicate a trend shift.
Summary
The Heiken Ashi Signal Cloud indicator for MT4 provides a visual way to follow market trends using overlay candles.
It simplifies trend identification and highlights potential buy and sell opportunities.
When used alongside trend or confirmation indicators from the strategy section, it improves trade accuracy and helps traders align with dominant market momentum.
