Forex Pip Hunter Trend is a trend indicator with some filters, developed for MT4. According to the programmer, the accuracy on buy/sell trades exceeds 70%.
The rules to buy and sell with the Pip Hunter Trend MT4 indicator are very simple, even for beginners.
You will need to open a buy trade position when the blue dot appears on the chart.
Set your take profit target at 40 pips.
A stop loss is not used in this case. You would exit the trade as soon as the red dot appears on the chart (opposite signal).
A sell trade will be initiated as soon as the red dot appears on the chart.
Set you take profit at 40 pips.
A stop loss for sell positions is not used. You will need to close and reverse the position as soon as the blue dot to buy appears on the chart.
It’s recommended to use a low spread Forex broker to maximize your profit potential.
The Pip Hunter Trend indicator can be deployed on any currency pair.
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Indicator Chart (EUR/USD H1)
The EUR/USD 1-hour chart below displays the Pip Hunter Trend MT4 indicator in action.
Basic Trading Signals
Signals from the Pip Hunter Trend indicator are easy to interpret and go as follows:
Buy Signal: Open a buy trade as soon as the blue dot appears on the chart.
Set your profit target to 40 pips for a buy signal.
Sell Signal: Open a sell as soon as the red dot appears on the chart.
Set your profit target to 40 pips for a sell signal.
Basically, we don’t use a stop loss; rather close and reverse the position when an opposite signal appears on the chart.
Naturally, you can use your own stop loss and take profit 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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MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Colors, Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Type: Trend
