The indicator I’m going to talk about today shows a fairly high performance. His algorithm includes moving averages. Hodrick Prescott shows not only the current trend in the market, but also indicates its strength. This indicator cannot be called universal because there is a time frame limit. According to his signals, it is recommended to trade on TF up to H1. But currency pairs can be used any. The accuracy of the signals is increased due to the fact that the indicator does not use in its calculations, the so-called market noise. For trading, you need to download the Hodrick Prescott file and install it in the appropriate directory directory of the trading terminal. MT4

Hodrick Prescott parameters

If you open a window with parameters, you can see that there are many. But only a few variables are important. The Nobs parameter allows you to specify how many candles the indicator should use to determine the current market trend. In addition, he needs to report the timeframe on which to run trade. For this, there is a corresponding parameter – Time-Frame. Repaint is a function that enables or disables signal redrawing. Finally, the Alerts parameter is responsible for the trader’s audible alert when the next signal enters the market.

Trading Rules

The Hodrick Prescott indicator is displayed as two lines on the chart of the trading currency pair. One of them is two-color. It changes color depending on which direction of motion prices prevail in the market. The second line predicts the further development of the market situation.

Signals are read very easily. They represent a line color change. If the blue line changed its color to red, then it means that you can sell. If the color of the line has changed from red to blue, then this is a signal for purchase. In order to reduce risks, you can, in addition to changing color, wait for a two-color line to cross the green line. For sales, it must be a top-down intersection, for purchases, bottom-up. In addition, during the next color change, you can close the active order. To improve trading results, I recommend using Hodrick Prescott in conjunction with another market analysis tool. And of course, do not forget about the demo account. The indicator requires pre-testing and can then be used in real trade. Download Hodrick Prescott indicator: indikator-hodrick-prescott Inga Fedorova 19.09.2021 Record Forex indicator Hodrick Prescott first appeared