About the Squeeze Candles Indicator
The Squeeze Candles Indicator for MT5 is a simple, candle-based trading tool that highlights bullish, bearish, and neutral market conditions directly on the main chart.
The indicator uses colored candles to convey market direction: green candles indicate bullish momentum, red candles indicate bearish momentum, and gray candles represent neutral or consolidating conditions.
Traders can quickly interpret market sentiment and spot potential entry points based on the color changes.
The array of colored candles helps identify trend continuation, reversals, and periods of consolidation at a glance.
The indicator’s inputs are adjustable, including period, deviation multiplier, and ATR multiplier, allowing traders to fine-tune its sensitivity according to their preferred strategy.
Free Download
Squeeze (candles).mq5 Indicator (MT5)
Key Features
- Displays colored candles on the main chart to indicate market direction.
- Suitable for beginners and advanced traders alike.
- Customizable period, deviation multiplier, and ATR multiplier.
- Helps identify trend continuation, reversals, and consolidation phases.
- Easy-to-interpret visual signals for faster decision-making.
Indicator Chart
The Squeeze Candles Indicator displays a series of colored candles directly on the price chart.
Green candles appear during upward momentum, red candles during downward momentum, and gray candles when the market is consolidating.
Traders watch for the first green or red candle after a neutral phase to identify potential trade entries.
Guide to Trade with the Squeeze Candles Indicator
Buy Rules
- Wait for the first green candle to appear after a neutral or bearish phase.
- Recognize this candle as a bullish signal.
- Open a buy trade when the green candle is confirmed.
- Monitor price movement and follow subsequent candles to manage the trade.
Sell Rules
- Wait for the first red candle to appear after a neutral or bullish phase.
- Recognize this candle as a bearish signal.
- Open a sell trade when the red candle is confirmed.
- Monitor price movement and follow subsequent candles to manage the trade.
Stop Loss
- For buy trades, place the stop loss just below recent short-term support.
- For sell trades, place the stop loss just above recent short-term resistance.
- Consider trailing stops as the trend develops in your favor.
Take Profit
- Close trades using a fixed profit target according to your strategy.
- Buy trades can also be closed when the first red candle forms.
- Sell trades can also be closed when the first green candle forms.
MT5 Squeeze Candles Strategy with Volume Profile Confirmation
This strategy combines the Squeeze Candles indicator with the Volume Profile indicator.
It is designed to catch strong price moves that start from key volume zones, using simple candle signals with structural market support and resistance.
The Squeeze Candles indicator shows momentum directly through candle color.
A green candle signals buying pressure, while a red candle signals selling pressure.
The Volume Profile helps identify important price areas where market activity is concentrated.
These zones often act as support or resistance and guide price direction.
This strategy works well on M15 and M30 timeframes.
It is suitable for traders who want clean entries based on momentum while using volume areas to avoid low-quality trades.
Buy Entry Rules
- Wait for a green Squeeze Candle to appear, showing strong bullish momentum.
- Check that price is holding above a high volume node, which acts as support.
- Look for a bullish rejection such as a strong bounce or wick from the support zone.
- Enter a buy trade at the close of the green candle confirmation.
- Place the stop loss below the nearest volume support area or below the signal candle low.
- Take profit at the next high volume resistance zone or when a red Squeeze Candle appears.
- An alternative is to close after a clear loss of bullish momentum.
Sell Entry Rules
- Wait for a red Squeeze Candle to appear, showing strong bearish momentum.
- Check that price is rejecting from a high volume node, which acts as resistance.
- Look for a bearish rejection such as a strong downside wick or failure to break higher.
- Enter a sell trade at the close of the red candle confirmation.
- Place the stop loss above the nearest volume resistance area or above the signal candle high.
- Take profit at the next high volume support zone or when a green Squeeze Candle appears.
- An alternative is to close after a clear loss of bearish momentum.
Case Study 1: EURUSD M15 Buy Trade
On EURUSD M15, price dropped into a high volume node where strong buying activity had previously formed.
Price held this level and showed rejection with a long lower wick.
A green Squeeze Candle formed right after the bounce, confirming bullish momentum.
A buy trade was entered at the close of the candle.
The stop loss was placed below the volume support area.
Price moved upward steadily and the trade was closed when a red Squeeze Candle appeared, signaling a shift in momentum and confirming an exit.
Case Study 2: GBPUSD M30 Sell Trade
On GBPUSD M30, price approached a high volume resistance zone and failed to break above it.
A clear rejection formed with a strong upper wick.
A red Squeeze Candle appeared at the same level, confirming bearish pressure.
A sell trade was entered at the close of the candle.
The stop loss was placed above the volume resistance zone.
Price dropped strongly and the trade was closed when a green Squeeze Candle formed, showing a reversal in momentum and ending the trade.
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Squeeze (candles).mq5 Indicator (MT5)
FAQ
Can the indicator be used on any instrument?
Yes, it works on all trading instruments available on the MT5 platform.
Is this indicator suitable for beginners?
Yes, its visual color-coded signals make it easy for beginners to understand market direction and trade without complex setups.
Summary
The Squeeze Candles Indicator provides a visual way to track market momentum through colored candles.
Green, red, and gray candles allow traders to quickly identify bullish, bearish, and neutral conditions.
By observing the first green or red candle after a neutral phase, traders can spot potential entry points with clear stop loss and take profit levels.
This makes it an effective tool for beginners and experienced traders alike.
The indicator’s adjustable settings allow for fine-tuning its sensitivity, making it suitable for scalping, intraday, or swing trading strategies on any instrument.
