Hull trend Indicator For MT5
Table Of Contents:
- Hull trend Indicator For MT5
- Trading ideas with the Hull trend Indicator For MT5
- Hull trend Indicator For MT5 - Buy Entries
- Hull trend Indicator For MT5 - Sell Entries
- Hull trend Indicator For MT5 - Conclusion
The Hull trend Indicator For MT5 is a moving average indicator that is not drawing as a line. Instead it gets drawn as colors directly on the price candles of the chart. It can give a clearer view on the price action while the values of the moving average are also visibule. But you can also make the line visible if you configure the indicator accordingly.
The Hull trend Indicator For MT5 is a premium level indicator that can analyze the stages of the trend. The indicator is based on the Hull moving average. Those who have used the Hull moving average, know the precision of this indicator.
But if you intend to rely on the Hull Trend indicator, it is crucial to select the right time frame. Some of the novice traders integrate the Hull trend indicator with a short time frame trading method and eventually lose most of the time. To protect your capital, you must integrate the Hull trend indicator with a higher time frame trading strategy.
Instead of creating a colored moving average, this indicator colors the bars which give us important information about the potential trade setup. The blue bars tell us the price is going higher and the brown bars suggest a strong fall in the price. But the colored bars are useless unless you know the proper way to integrate the colored bars into an existing trading method.
Trading ideas with the Hull trend Indicator For MT5
The use of the Hull Trend indicator greatly depends on your trading strategy. Some of us love to trade the lower time frame. But integrating this Hull trend indicator with a lower time frame trading method is not going to work.
People will get more frustrated with the colored bars and the win rate will fall to a great extent. This indicator can be sync with the intraday and position trading methods. So, the minimum time frame that you need to use is the hourly chart.
In case, you want to take the trades based on the minute time frame data, you must be careful about the news hours and price action signal. Since trading is a very risky business, it's better to follow the safe path. Use the Hull trend indicator only to filter the signals in the higher time frame.
Hull trend Indicator For MT5 - Buy Entries
There are some key steps you need to follow to find the buying zone. Most of the indicator based trading system ignores the importance of the critical support level.
The retail traders look for the potential trade setups at the important support level and look for the potential bullish signal based on the indicators reading. Instead of doing that, you have to analyze the important support level in the hourly chart. Once you get the support zone, look for the rejection pattern.
As you spot the rejection pattern in the chart, it’s time to look at the important price action signal. After spotting the perfect buying signal in the instrument, you should be looking at the color of the bars. If the buying signal is valid, you should be seeing blue bars on the candles. But taking the long trade just with one blue bar is not a wise decision.
The professional traders wait for three overlaying blue bars on the candles. The three blue bars generated by the Hull trend indicator at the critical support level is a strong indication that the price will move to a new high.
Hull trend Indicator For MT5 - Sell Entries
Some of the people think the use of any indicator will be the same for both the short and long trade. But this is not all true. Since the Hull trend indicator defines the quality of the trend, you must know the key difference between the retracement and trending movement. At times, traders fail to identify the trending movement as they consider they drop in the price as a part of the correction.
But the market can change its trend without showing any prior signal. Those who are smart can easily spot the trade setup in the chart. Since the Hull trend indicator requires a higher time frame, we are assuming that you will be able to define the direction of the trend based on your existing trading strategy.
If not, you should look for three higher lows marked with the brown color candle. The brown color candle will be formed by the Hull trend indicator. After spotting the selling signal in the chart, you have to look at the key metrics and take the trades with a very tight stop.
Let’s say, you have defined the bearish trend and now want to short the asset on a valid bearish signal. In case you are taking the trades with the trend, wait for three consecutive brown bars. If the trade setup is against the trend, you have to wait for a minimum of 5 consecutive brown bars.
Once you get the confirmation from the Hull trend indicator, you can be sure that the trade will most likely hit the take profit. But remember, no trading strategy is perfect even if you master the use of the Hull trend indicator. At best you can win 90% of the time but the remaining 10% of the trades will be the losers.
Hull trend Indicator For MT5 - Conclusion
After learning about the basic details of the Hull trend indicator, people often become confused. They lose a series of trades and blame the Hull trend indicator. You have to understand the fact, this indicator is not the Holy Grail in the Forex market.
After integrating the Hull trend indicator with your existing trading method, you have to reassess the risk to reward ratio and money management techniques. In case you want to increase the risk to reward ratio, make sure you are not increasing the lot size or risk exposure. Smart traders are always ready to embrace the losing trades since they know trading is nothing but a game probability.
Those who can trade with low risk and accept the sudden losses can easily earn enough money. Regarding the major news, be prepared to deal with the high impact news in a very conservative way. In case you intend to trade on the major news, you should risk only 1% of the account balance. If you increase the risk more than that, you are not going to trade in a stress-free environment.