About the Pip Hunter Trend Indicator
The Pip Hunter Trend indicator for MT4 is a trend-following tool developed to deliver straightforward buy and sell signals with minimal chart clutter.
It uses internal filters to focus on sustained market movement rather than short-term noise.
After applying the indicator to a chart, it plots colored dots directly on price.
A blue dot signals bullish conditions, while a red dot signals bearish conditions.
According to the developer, the indicator achieves a high accuracy rate, making it attractive for traders who prefer simple rule-based execution.
The indicator is designed with ease of use in mind.
Trading decisions are based purely on dot color changes, which makes it suitable for beginners while still being practical for experienced traders who want fast signal recognition.
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Key Features
- Trend-following indicator with built-in filters.
- Blue dots for buy signals.
- Red dots for sell signals.
- Simple rules suitable for beginners.
- Fixed pip target trading approach.
- Works on all currency pairs.
- Best used with low spread brokers.
Indicator Chart
Example chart showing the Pip Hunter Trend indicator applied to a forex pair.
The chart displays blue and red dots plotted along price movement.
Each dot represents a directional signal, allowing traders to stay in the market until an opposite signal appears.
Guide to Trade with Pip Hunter Trend
Buy Rules
- Wait for a blue dot to appear on the chart.
- Open a buy trade immediately after the signal.
- Set a fixed take profit target of 40 pips.
Sell Rules
- Wait for a red dot to appear on the chart.
- Open a sell trade immediately after the signal.
- Set a fixed take profit target of 40 pips.
Stop Loss
- No fixed stop loss is used in the default approach.
- Close and reverse the position when an opposite dot appears.
Take Profit
- Use a fixed take profit of 40 pips per trade.
- Traders may adjust targets based on personal risk preferences.
Pip Hunter Trend + XTC Indicator Forex Scalping Strategy
This MT4 scalping strategy combines the Pip Hunter Trend Forex Indicator and the XTC Forex Trend Indicator.
The Pip Hunter Trend gives blue dots for buy signals and red dots for sell signals, while the XTC indicator uses a blue histogram for bullish trends and a red histogram for bearish trends.
This setup is designed for fast-paced scalping on 1-minute to 15-minute charts, helping traders capture short-term moves in major currency pairs during active market sessions.
Buy Entry Rules
- Wait for the XTC histogram to turn blue, indicating a bullish trend.
- Enter a buy trade when the Pip Hunter Trend displays a blue dot in alignment with the blue histogram.
- Place a stop loss a few pips below the recent swing low or the signal candle.
- Set a take profit of 8–15 pips for M1/M5 charts or 15–25 pips for M15 charts, or exit when the XTC histogram turns red or a red dot appears.
Sell Entry Rules
- Wait for the XTC histogram to turn red, indicating a bearish trend.
- Enter a sell trade when the Pip Hunter Trend displays a red dot in alignment with the red histogram.
- Place a stop loss a few pips above the recent swing high or the signal candle.
- Set a take profit of 8–15 pips for M1/M5 charts or 15–25 pips for M15 charts, or exit when the XTC histogram turns blue or a blue dot appears.
Advantages
- Combines trend confirmation (XTC histogram) with precise entry signals (Pip Hunter dots) for higher accuracy.
- Simple trading signals make it easy to spot trades quickly.
- Effective for scalping during high-volatility sessions.
- Works well on major currency pairs with tight spreads.
Drawbacks
- Signals may be delayed in very fast market moves, leading to late entries and smaller profits.
- Frequent trading in scalping can be mentally exhausting and may cause mistakes if the trader is not focused.
- The strategy may underperform during range-bound periods where trends are weak and histogram colors flip frequently.
Case Study 1: EURUSD 5-Minute Chart
During the London session, EURUSD showed a blue XTC histogram and a blue dot from Pip Hunter Trend at 1.0805.
A buy trade was entered at 1.0805 with a stop at 1.0795.
Price moved quickly to 1.0818, securing 13 pips before a red dot appeared and the XTC histogram started turning red.
Case Study 2: GBPUSD 15-Minute Chart
In the New York session, GBPUSD displayed a red XTC histogram and a red dot at 1.2650.
A sell trade was entered at 1.2650 with a stop at 1.2662.
The pair dropped to 1.2628 (22 pips profit) before a blue dot and blue histogram signalled a reversal, and the trade was closed.
Strategy Tips
- Use higher timeframes like M5 or M15 for more reliable trend confirmation and to reduce noise from M1 charts.
- Check economic news and avoid trading during major announcements to prevent unexpected volatility.
- Consider combining with support/resistance levels for additional confirmation before entering trades.
- Keep trade size small to manage risk effectively, especially with multiple scalping trades per session.
- Review your trades daily to identify which sessions and pairs produce the most consistent results.
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FAQ
Why does the strategy avoid using a stop loss?
The indicator is designed to stay in trending moves and exit only when direction changes.
Closing and reversing on an opposite signal replaces the traditional stop loss concept.
Which market conditions suit this indicator best?
The Pip Hunter Trend performs best in clearly trending markets where price maintains directional momentum.
Can I change the fixed pip target?
Yes. While the default approach uses a 40-pip target, traders can adjust take profit levels to match their trading style.
Is this indicator suitable for higher timeframes?
Yes. It can be used on both lower and higher timeframes, though signal frequency and trade duration will vary.
Summary
The Pip Hunter Trend indicator for MT4 offers a simplified approach to trend trading by using clear dot-based signals and fixed profit targets.
Its straightforward rules remove much of the decision-making complexity from trade execution.
With no repaint behavior and easy interpretation, the indicator is simple to trade.
It also works across multiple currency pairs and suits disciplined, rule-driven trading styles.
