Sentiment Histogram Indicator
Sentiment Histogram indicator for MT4 shows BULLISH and BEARISH market trend as a histogram with forex trading BUY and SELL signals.
Description
The Sentiment Histogram indicator for MT4 shows the BULLISH and BEARISH market conditions as a histogram bar. The indicator provides multiple color histogram bars as the trend progresses and retraces around a ZERO line. As a result, the indicator provides BUY and SELL forex trading signals and also early warning indications of trend reversals.
The indicator is suitable for new and experienced forex traders. New traders can easily identify the BULLISH and BEARISH market conditions and place BUY or SELL signals accordingly. The indicator can be incorporated in automatic trading systems and EAs.It works well in the intraday chart as well as daily, weekly and monthly charts. Additionally, the indicator is free to download and easy to install.
Sentiment Histogram Indicator For MT4 Trading Signals
The above EURUSD H4 chart shows the Sentiment Histogram indicator for MT4 in action. The indicator displays the BULLISH trend progressing in ROYAL BLUE and trend retracement in Deep Sky Blue. Similarly, it shows the BEARISH trend progressing in FIRE BRICK and the trend retracement in RED. The indicator displays the histogram in a separate indicator window, with the Zero line of the histogram in a WHITE dotted line.
The best forex trading results are obtained by following the indicator’s trend direction. A Blue histogram above the Zero line indicates a BULLISH market condition and is a suitable place for BUY entry. Traders can place a stop loss below the previous low and continue to hold the position and ride the trend as long as the histogram stays BULLISH. So traders can look to take profit at the opposite signal, with a good risk-reward ratio. However, as the indicator shows the progressive trend and retracement trend, forex traders can exit upon retracements.
Oppositely, as the histogram bar changes color to RED and moves below the zero line, it indicates a BEARISH price trend. Forex traders can place a SELL trade with a stop loss above the previous high. The traders can obtain take profit in multiple methods. Firstly, exit on an opposite signal. Secondly, exit with a good risk and reward ratio. Thirdly, if there is a retracement signal in the histogram bar.
Traders can use this indicator for trading multiple time frames (mtf) trading strategies. Since the trend on higher time frames tends to provide a much stable and better trend direction. Forex traders can use the higher time frame to identify a trend and a lower time frame to obtain the best entry point.
Conclusion
The Sentiment Histogram indicator for MT4 provides visual BUY and SELL trading signals using the histogram bar. Moreover, the color differentiation of trend progression and retracements provides visual clues of trend reversals and assists the forex trader to plan the best exit. Forex traders can use this indicator to trade independently or combine with other trend-following indicators or for auto trading. Additionally, forex traders can download the indicator for free and install it with ease.