Half Trend Cloud is a trend overlay indicator featuring two Half Trend layers: a Fast line for early direction shifts and entry timing, and a Slow line for trend confirmation. Both lines are plotted directly on price, with a colored cloud filling the space between them to visually represent trend conditions. The cloud appears green when both Fast and Slow trends are bullish, red when both are bearish, and neutral when trends disagree.
Each Half Trend layer applies selectable price types (e.g., High/Low) and moving average smoothing over configurable amplitude/period settings. Trend direction is internally tracked as +1 or -1, with the cloud color determined by comparing the Fast and Slow trend directions.
Key parameters include Fast and Slow periods and their respective moving average types, allowing customization of reaction speed and noise filtering. The indicator supports multiple trading styles—scalping, day trading, swing trading, and breakout strategies—by using the Fast line for timing and the Slow line for bias and confirmation. It is applicable across various markets and symbols including Forex pairs (EURUSD, GBPUSD, USDJPY, NZDUSD), commodities (XAUUSD), indices (NAS100), and cryptocurrencies (BTCUSD).
Traders are advised to use the cloud alignment as a core rule for trade direction: green for long positions, red for short, and to avoid trades during mixed cloud conditions.