Trend Candlestick MT4 indicator – Free MT4 Indicator
The Trend Candlestick MT4 indicator is a trend following indicator that unlike any other indicators it gives you a clear visual picture of whether the trend is bullish or the trend is bearish. Based on Wikipedia definition trend following is “an investment or trading strategy which tries to take advantage of long, medium or short-term moves that seem to play out in various markets. Traders who employ a trend following strategy do not aim to forecast or predict specific price levels; they simply jump on the trend (when they perceived that a trend has established with their own peculiar reasons or rules) and ride it.”
The key factor that we have to keep in mind is that trend following doesn’t necessarily imply to predict the trend, but rather to try to ride the trend once it’s established and can be recognized. The Trend Candlestick MT4 indicator does precisely that, which is to identify the trend, but it does it so much earlier and usually a new trend is identified right from its inception. The Trend Candlestick MT4 indicator can be used to identify the short-term trends all the way up to the bigger trends and in this regard no matter if you’re a scalper or a long-term trader this indicator will keep you on the right side of the market. Going forward in this article you’ll learn more about the Trend Candlestick MT4 indicator and last but not least, you’ll learn a simple yet effective strategy.
The Trend Candlestick MT4 Indicator
In Figure 1 we have an example of how much clear the chart looks like when using the Trend Candlestick MT4 indicator. A lot of the noise that the standard candlestick price chart exhibit is eliminated and even though it’s not perfect it will improve your ability to spot the trend direction and last but not least to be on the right side of the market. In Figure 2 we can look at a comparison between the standard candlestick price chart and a chart with the Trend Candlestick MT4 indicator and by simply having a visual inspection of the chart, we can notice how much clearer the trend is when using the Trend Candlestick MT4 indicator.
Trend Candlestick MT4 Indicator Strategy
Like any other indicator the Trend Candlestick MT4 indicator is not perfect and in this regard before buying or selling, we want to make sure we’re trading in the direction of the daily trend because that’s the most powerful trend. No matter what time frame you use only take trades in the direction of the daily trend. Without further ado, here are the strategy rules:
- Buy Signal: Check the daily chart and make sure we have a bullish trend (green candlestick). Downgrade to the 15 minute time frame and buy after the first green candle using a protective stop loss 10 pips below the green candle and take profit after the trend has changed from bullish (green candlestick) to bearish (purple candlestick).
- Sell Signal: Check the daily chart and make sure we have a bearish trend (purple candlestick). Downgrade to the 15 minute time frame and sell after the first purple candle using a protective stop loss 10 pips above the purple candle and take profit after the trend has changed from bearish (purple candlestick) to bullish (green candlestick).
Trend Candlestick MT4 Indicator Trade Example
At the beginning of June 2016 (see Figure 3) we had the start of a new bullish trend on EUR/USD which means that if we are to follow the rules of our trend following strategy once we downgrade to the 15-minute chart we’re only going to take long positions.
In Figure 4 we have the 15-minutes EUR/USD chart, we have a few trading opportunities that show the power of trading with the trend. Even when the market moves against us the loss is usually very minimal or you have the chance to break-even, while the profit potential is always much bigger which shows a positive asymmetrical risk-reward ratio.
Trend Candlestick MT4 Indicator – Recommended Time Frames
Technically speaking, you can use this MT4 indicator for all time frames. However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly. We recommend that you use higher time frames like the 4H for better consistency.
How to trade with Trend Candlestick Video Tutorial
How to trade with Trend Candlestick Video Tutorial
Ichimoku Kinko Hyo MT4 System Indicator Download
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