What it does
EMA Cloud Trend shades the space between two pairs of exponential moving averages. The fast cloud (8 and 21 EMA) shows the short-term swing, and the slow cloud (50 and 200 EMA) shows the broader trend. Each cloud is green-tinted when its faster EMA is on top and red-tinted when its slower EMA is on top.
Arrows mark the closed bar where the fast cloud changes colour. By default an arrow only appears when that change agrees with the slow cloud, so you see short-term turns back in the direction of the main trend.
How it works
- Each EMA uses the standard formula: EMA = previous EMA + k × (close − previous EMA), with k = 2 ÷ (length + 1).
- The fast cloud is filled between EMA 8 and EMA 21, the slow cloud between EMA 50 and EMA 200. MT5's filling draws one colour while the first line is above the second and the other colour when it is below.
- A bullish flip is a closed bar where EMA 8 moves above EMA 21 after being at or below it. A bearish flip is the reverse.
- With the alignment filter on, a bullish flip is only marked if EMA 50 is above EMA 200, and a bearish flip only if EMA 50 is below EMA 200.
How to use it
- Read the slow cloud first. Green slow cloud: the long-term trend is up. Red: it is down. A thin slow cloud means the trend is weak or turning.
- In an uptrend, a red fast cloud often reflects a pullback. The return to green, marked by an arrow, is the kind of moment trend followers watch.
- Price holding above the slow cloud during pullbacks is a sign of trend strength; repeated closes inside or through it are a warning.
- Combine arrows with support and resistance or a candle pattern so you are not acting on every colour change.
- Learn the basics of these averages in Moving Averages.
Settings
| Input | Default | What it changes |
|---|---|---|
| Fast cloud EMA A / B | 8 / 21 | Sensitivity of the short-term cloud |
| Slow cloud EMA A / B | 50 / 200 | Definition of the long-term trend |
| Only signal flips that agree with the slow cloud | true | Turn off to see every fast-cloud flip |
| Pop-up alert / Push notification | false / false | One alert per closed bar on a new signal |
Limitations
- EMAs are lagging by design. The 50/200 cloud in particular can stay one colour long after price has turned.
- In ranges the fast cloud flips frequently and the arrows will include many false starts.
- The EMAs are seeded from the first available bar, so the earliest part of a short chart history is less accurate; this settles after a few hundred bars.
- The live bar's cloud updates with every tick; arrows and alerts are confirmed on the bar close.
- An indicator cannot remove market risk. Plan your stop-loss before any trade and practise on a demo account first.