Kumo Cloud Heatmap MTF for Metatrader 4 is composed of the Kumo indicator and draws an interesting buy & sell signal heatmap on the chart.
The indicator pops up in the main MT4 chart as a colored buy & sell dashboard that delivers bullish and bearish Kumo trends for the M1, M5, M15, M30, H1, H4, D1, W1 and MN charts.
Key Takeaways:
- The trend is bullish when the heatmap’s color is green for your desired currency pair and time frame.
- The trend is bearish when the heatmap’s color is red for your desired currency pair and time frame.
Colors and layouts can be fully modified in the indicator’s inputs.
The Kumo Cloud Heatmap MTF indicator can be used for both trade entry and exit, or as an additional confirmation filter for other strategies and systems.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “kumo_cloud_heatmap_mtf_window_2_2.mq4” indicator for MT4
Indicator Chart (EUR/USD M5)
The example chart below displays the Kumo Cloud Heatmap MTF mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the Kumo Cloud Heatmap MTF indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Kumo
Does the indicator repaint? No.
MT4 Day Trading Strategy: Kumo Cloud Heatmap + Ashi Trend Signal
This day trading system combines the power of the Kumo Cloud Heatmap Indicator for MT4 and the Ashi Trend Signal Indicator.
The setup offers a simple and effective way to confirm market trends across multiple time frames while timing entries with clear visual arrows.
It’s designed for traders who prefer structured intraday trading on pairs with strong momentum and directional bias.
The Kumo Cloud Heatmap serves as a higher-timeframe trend filter, displaying the overall market sentiment across several time frames and major pairs.
A green heatmap means the trend is bullish, while a red heatmap indicates bearish pressure.
The Ashi Trend Signal then refines these insights with precise buy and sell arrows, offering entry points that align with multi-timeframe strength.
This strategy works well on M15, M30, and H1 charts, particularly during the London and New York sessions when price movement is strongest.
Buy Entry Rules
- Confirm that the Kumo Cloud Heatmap shows mostly green across key timeframes for your chosen pair (M15, M30, H1).
- Wait for a blue arrow from the Ashi Trend Signal to appear on your chart.
- Enter a buy trade at the close of the candle where the blue arrow appears.
- Set a stop loss below the recent swing low or below a key support level.
- Set take profit for 30–45 pips on major pairs or use a trailing stop of 20 pips to follow the trend.
Sell Entry Rules
- Confirm that the Kumo Cloud Heatmap shows red across multiple timeframes, signaling a strong bearish bias.
- Wait for a red arrow from the Ashi Trend Signal to confirm downside momentum.
- Enter a sell trade at the close of that candle.
- Place the stop loss above the most recent swing high or resistance level.
- Set take profit between 30–50 pips or trail your position with a 15–20 pip dynamic stop.
Advantages
- Uses a clear, multi-timeframe heatmap for high-confidence entries.
- Combines strong trend alignment with visual signal precision.
- Flexible take-profit management suitable for volatile markets.
- Effective for intraday traders who prefer structured setups.
- Minimizes false trades by filtering weak or neutral trends.
Drawbacks
- It may produce late entries when the trend accelerates suddenly.
- In ranging markets, mixed heatmap colors can lead to indecision.
- Signals may appear less frequently on higher timeframes.
- Performance depends heavily on session volatility and spread size.
Case Study 1: EUR/USD on M30
During the London session, the Kumo Cloud Heatmap for EUR/USD showed a strong green signal on M15, M30, and H1.
A blue arrow from the Ashi Trend Signal appeared at 1.0985.
A buy entry was made with a 20-pip stop loss and a 40-pip target.
Within three hours, the pair reached 1.1025, closing the trade with a 2× reward-to-risk ratio.
Case Study 2: AUD/JPY on H1
In the Tokyo session, the Kumo Cloud Heatmap displayed red across all short-term timeframes.
The Ashi Trend Signal printed a red arrow at 97.10.
A sell order was placed with a 25-pip stop and a 45-pip target.
As volatility increased, the pair dropped to 96.65, achieving the take profit smoothly within four hours.
Strategy Tips
- Use this system on trending days—avoid choppy or overlapping heatmap readings.
- Combine with key levels or Fibonacci retracements to refine entries.
- For higher accuracy, only trade when at least three consecutive timeframes on the heatmap show the same color.
- Try a partial take profit approach: close half the position at +25 pips and trail the rest.
- Stick to high-volume sessions for stronger and faster market reactions.
Conclusion
The combination of the Kumo Cloud Heatmap and Ashi Trend Signal indicators creates a structured day trading approach based on trend strength and timing precision.
The heatmap’s broad overview keeps traders aligned with the dominant market direction, while the arrow signals pinpoint ideal entry opportunities.
This setup provides a balance between simplicity and depth, making it suitable for both beginners and advanced intraday traders.
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Download the “kumo_cloud_heatmap_mtf_window_2_2.mq4” indicator for Metatrader 4
