About the SEFC05 Trend Cloud Indicator
The SEFC05 Trend Cloud for MT4 is a practical tool that takes the guesswork out of trend following.
Instead of relying on a single lagging line, this system uses a cloud-based algorithm to highlight the “path of least resistance” for price.
The SEFC05 Trend Cloud indicator for Metatrader 4 is a precise buy/sell trend cloud that works for both trade entries and exits.
The indicator appears in the main MT4 chart as an orange and green colored buy/sell trend cloud, making it incredibly easy to read at a glance.
When the cloud is orange, the bulls are in charge; when it turns green, the bears have taken over.
It provides a simple way to maintain an edge by ensuring you are always trading in harmony with the dominant market flow.
Free Download
Download the “SEFC05.ex4” indicator for MT4
Key Features
- It plots a color-coded cloud directly on the price chart for intuitive trend tracking.
- The indicator uses a dual-color system where orange represents bullishness and green represents bearishness.
- It identifies significant trend reversals early, allowing for better entry timing.
- It functions as both a signal generator and a dynamic support or resistance area.
Indicator Chart
The SEFC05 Trend Cloud indicator chart shows price candles moving inside or alongside a shaded cloud area.
When the cloud shifts to orange, it suggests a bullish environment where buying opportunities should be prioritized.
A shift to green indicates a bearish phase where selling is preferred.
Traders can use the edges of the cloud to gauge the strength of the move and identify potential exhaustion points.
Guide to Trade with SEFC05 Trend Cloud Indicator
Trading with this tool involves following the color shifts of the cloud to stay aligned with market momentum.
Buy Rules
- Monitor the chart for the transition where the cloud changes from green to orange.
- Open a buy trade as soon as the SEFC05 indicator starts drawing the orange trend cloud.
- Wait for a candle to close within or above the orange cloud to confirm the signal.
- Ensure the price is making higher highs and higher lows to support the bullish bias.
Sell Rules
- Watch for the moment the cloud switches from orange to green.
- Open a sell trade as soon as the SEFC05 indicator starts drawing the green trend cloud.
- Confirm the signal by waiting for a candle to close showing bearish conviction.
- Verify that the broader market trend is not moving against your sell position.
Stop Loss
- For buy trades, place the stop loss a few pips below the bottom edge of the orange cloud.
- For sell trades, place the stop loss a few pips above the top edge of the green cloud.
- Always keep your risk levels controlled to protect your capital from sudden reversals.
Take Profit
- Reverse the position or close the trade as soon as an opposite signal occurs on the chart.
- Alternatively, target a fixed risk-to-reward ratio of at least 1:2.
- You can also exit when the price moves significantly far away from the cloud, indicating a potential overextension.
SEFC05 Trend Cloud + Best Forex Scalping MT4 Strategy
This MT4 scalping strategy combines the SEFC05 Trend Cloud Indicator with the Best Forex Scalping Indicator.
It is designed for quick, short-term trades on major currency pairs such as EUR/USD, GBP/USD, USD/JPY, and AUD/USD.
The SEFC05 Trend Cloud visually shows market direction: orange clouds indicate bullish trends, green clouds indicate bearish trends.
The Best Forex Scalping Indicator provides blue arrows for buy signals and red arrows for sell signals.
By combining these indicators, traders can scalp high-probability setups while staying aligned with the trend.
Buy Entry Rules
- Wait for the SEFC05 Trend Cloud to turn orange, indicating an uptrend.
- Confirm a buy signal with a blue arrow from the Best Forex Scalping Indicator.
- Enter a buy trade on the candle following the arrow.
- Set a stop loss below the recent swing low or cloud bottom.
- Take profit at 10–20 pips for M1/M5 charts, or exit when the cloud changes color to green.
Sell Entry Rules
- Wait for the SEFC05 Trend Cloud to turn green, indicating a downtrend.
- Confirm a sell signal with a red arrow from the Best Forex Scalping Indicator.
- Enter a sell trade on the candle following the arrow.
- Set a stop loss above the recent swing high or cloud top.
- Take profit at 10–20 pips for M1/M5 charts, or exit when the cloud changes color to orange.
Advantages
- Clear visual trend direction using the cloud for easier decision-making.
- Arrow signals provide precise entry points for scalping.
- Works on multiple major currency pairs with good liquidity.
- Short-term setup allows multiple trades per session.
- Combining trend and signal reduces false entries in choppy markets.
Drawbacks
- Profit targets are small, so spreads and commissions can affect results.
- Cloud color changes may lag slightly during rapid reversals.
- Not ideal for higher timeframes where scalping signals are slower.
Example Case Study 1: EUR/USD M5 Chart
During the London session, the SEFC05 Trend Cloud turned orange while a blue arrow appeared on the Best Forex Scalping Indicator.
A buy trade was entered at 1.0965 with a stop loss at 1.0950 and a take profit at 1.0980 (15 pips).
The trade hit the target within 20 minutes, showing how trend + arrow alignment captures quick scalps.
Example Case Study 2: GBP/USD M1 Chart
GBP/USD showed a green SEFC05 cloud and a red arrow on the Best Forex Scalping Indicator.
A sell trade was opened at 1.2785 with a stop loss at 1.2795 and take profit at 1.2768 (17 pips).
The trade closed in 12 minutes as the market followed the bearish trend, demonstrating fast scalping potential.
Strategy Tips
- Focus on major pairs for tighter spreads and smoother price action.
- Trade during high-liquidity sessions like London and New York.
- Exit trades if the cloud changes color or signals are conflicting.
- Use proper risk management with small position sizes to handle frequent trades.
- Practice on demo accounts to get used to timing the arrow and cloud alignment for scalping.
Download Now
Download the “SEFC05.ex4” indicator for Metatrader 4
FAQ
Does the cloud act as support and resistance?
Yes, many traders use the SEFC05 Trend Cloud as a dynamic support and resistance zone.
In an uptrend, the price will often pull back to the orange cloud and bounce off it. In a downtrend, the green cloud often acts as a ceiling.
This makes it useful not just for the initial entry, but for finding “add-on” opportunities during a strong trend.
Is this indicator suitable for scalping?
The SEFC05 is excellent for scalping on the 1-minute or 5-minute charts because of its clear trading signals.
It helps scalpers identify the exact moment a quick momentum burst begins.
Because the indicator is lightweight, it updates in real-time, providing the speed necessary for high-frequency trading styles.
How do I filter out false signals in a sideways market?
Like most trend-following tools, the cloud can produce “whipsaws” when the market is flat.
To filter these, only take trades when the cloud has a clear slope and is expanding in width.
A wide, steeply angled cloud indicates a very strong trend, whereas a thin, horizontal cloud suggests a ranging market where it is better to stay on the sidelines.
Summary
The SEFC05 Trend Cloud for MT4 is an effective technical tool that assists in determining the appropriate timing for market entries.
By providing a visual map of market sentiment, it helps you avoid the common mistake of trading against a powerful trend.
This tool helps traders maintain a disciplined routine by highlighting levels where the market is statistically likely to continue its current path.
Using this indicator allows you to filter high-risk trades and focus on high-conviction momentum shifts.
