The Hodrick-Prescott Channel Forex indicator for MT4 provides multiple trading signals daily and works great for scalpers and day traders.
Generally speaking, the indicator is a dynamic price channel based on the Hodrick-Prescott trading methodology.
The candlesticks are somewhat wrapped within the channel and price entries and exits occur at the upper and lower channel band.
In addition, the indicator also displays the spread and channel slope in real-time.
How to interpret?
- The trend is bullish when the Hodrick-Prescott Channel indicator is sloping up.
- In the bullish case, we will look to enter long near the lower band.
- The trend is bearish when the Hodrick-Prescott Channel indicator is sloping down.
- In the bearish case, we will look to enter short near the upper band.
Key Points
- Works well for scalpers & day traders
- Easy trading rules
- Multiple trade entries daily
- Dynamic trading channel
- Well worth adding to your indicator collection
The Hodrick-Prescott Channel indicator works the best during the most volatile trading hours.
Free Download
Download the “Hodrick-Prescott Channel.ex4” MT4 indicator
Indicator Example Chart
The USD/JPY 30-minute chart below shows the Hodrick-Prescott Channel indicator in action.
Basic Trading Signals
Signals from the Hodrick-Prescott Channel indicator for Metatrader 4 are easy to interpret and goes as follows:
BUY:
- A buy signal is given when price touches the lower band and the price channel is sloping up.
- Place stop loss below the most recent swing low point.
- Take profit at the upper price channel band.
SELL:
- A sell signal is given when price touches the upper band and the price channel is sloping down.
- Place stop loss above the most recent swing high point.
- Take profit at the lower price channel band.
Download This Forex Indicator
Download the “Hodrick-Prescott Channel.ex4” MT4 indicator
Adjustable Parameters & Settings
HP fast period, HP slow period, color of text label
Feel free to explore the indicator’s different parameters and settings to create your own personalized indicator setup.
More Info About This Indicator
Currency Pairs: works on any currency pair
Trading Platform: developed for Metatrader 4 (MT4)
Time Frames: works on any time frame
Indicator Type: buy/sell trading channel
How to install the Hodrick-Prescott Channel indicator in Metatrader 4?
- Copy and paste the Hodrick-Prescott Channel.ex4 indicator into the MQL4 indicators folder.
- You can access this folder from the top menu as follows:
- File > Open Data Folder > MQL4 > Indicators (paste here)
How to remove the indicator from the chart?
- Right click in the chart
- Select indicators list
- Click on the indicator’s name
- Click on the delete button