About the MACD Candles Indicator
The MACD Candles indicator for MT5 is a momentum-based trading tool that transforms traditional MACD signals into colored candlesticks directly on the price area.
The indicator displays a sequence of green and red candlesticks that represent the current market direction.
A green candlestick signals bullish momentum, while a red candlestick indicates bearish pressure.
This makes the indicator simple to interpret, even for beginners.
The signals are generated using the MACD calculation, which measures the relationship between fast and slow moving averages.
By converting this data into colored candlesticks, traders can easily follow trend changes and potential entry opportunities.
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MACD Candles.mq5 Indicator (MT5)
Key Features
- Displays MACD signals as colored candlesticks.
- Easy to understand visual trading signals.
- Suitable for both beginner and experienced traders.
- Supports alerts, email notifications, and push alerts.
- Customizable MACD fast and slow periods.
Indicator Chart
The MACD Candles indicator appears directly on the main price area where the candles change color according to MACD momentum.
In the example, green candles highlight bullish phases while red candles signal bearish market conditions and potential sell opportunities.
Guide to Trade with MACD Candles Indicator
Buy Rules
- Watch for the appearance of the first green candlestick.
- Confirm that the candle forms after a bearish sequence.
- Check that price begins moving upward after the signal.
- Open a buy trade once the green candle closes.
Sell Rules
- Monitor the chart for the first red candlestick.
- Confirm that the candle forms after a bullish sequence.
- Observe whether price starts moving downward.
- Open a sell trade after the red candle closes.
Stop Loss
- Place the stop loss slightly below the entry candle for buy trades.
- For sell trades, position the stop loss just above the entry candle.
- Another option is placing the stop beyond the nearest intraday level.
Take Profit
- Close the buy trade when a red colored candle appears.
- Close the sell trade when a green colored candle appears.
- Set a predefined profit target based on your risk ratio.
MACD Candles Indicator Divergence Strategy for MT5
This strategy combines the MACD Candles Indicator with the MACD Divergence Indicator to trade reversal setups based on divergence.
The MACD Candles indicator simplifies trend direction by coloring candles.
Consecutive green candles indicate bullish pressure, while consecutive red candles indicate bearish pressure.
The MACD Divergence indicator highlights potential reversals using divergence signals.
A green arrow shows bullish divergence, while a red arrow shows bearish divergence.
This strategy focuses on spotting divergence first, then using candle color shifts for confirmation.
It works well on M5 and M15 charts where reversals develop with clear structure.
Buy Entry Rules
- Wait for a green arrow from the MACD Divergence Indicator indicating bullish divergence.
- Confirm that MACD Candles start printing consecutive green candles.
- Enter a buy trade after the first strong green candle closes.
- Place the stop loss below the recent swing low.
- Close the buy trade when red candles begin forming consecutively or when a red divergence arrow appears from the MACD Divergence Indicator.
Sell Entry Rules
- Wait for a red arrow from the MACD Divergence Indicator indicating bearish divergence.
- Confirm that MACD Candles start printing consecutive red candles.
- Enter a sell trade after the first strong red candle closes.
- Place the stop loss above the recent swing high.
- Close the sell trade when green candles begin forming consecutively or when a green divergence arrow appears from the MACD Divergence Indicator.
Case Study 1: USDCHF M15 Buy Trade
On USDCHF M15, price was forming lower lows while the MACD Divergence Indicator printed a green arrow, signaling bullish divergence.
Shortly after, MACD Candles started printing consecutive green candles.
A buy trade was entered after the confirmation candle closed. The stop loss was placed below the recent swing low.
Later in the trading session, consecutive red MACD candles appeared.
The buy trade was closed at that moment based on the MACD Candles indicator shifting back to bearish.
Case Study 2: EURGBP M5 Sell Trade
On EURGBP M5, price formed higher highs while the MACD Divergence Indicator printed a red arrow, indicating bearish divergence.
Two candles later, MACD Candles began printing consecutive red candles.
A sell trade was entered after the signal candle closed. The stop loss was placed above the recent swing high.
About 1 hour later, a green arrow appeared from the MACD Divergence Indicator.
The sell trade was closed at that point based on the MACD Divergence Indicator signaling an opposite condition.
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MACD Candles.mq5 Indicator (MT5)
FAQ
How does the MACD Candles indicator generate signals?
The indicator uses MACD calculations to determine momentum and then converts the signals into colored candlesticks on the price area.
Can the indicator send trading alerts?
Yes. The indicator supports alert messages, email alerts, and push notifications when new signals appear.
Which settings can be adjusted?
Traders can modify the MACD fast period, MACD slow period, applied price, and enable or disable various alert options.
Summary
The MACD Candles indicator offers a simple way to visualize MACD momentum directly on the price area.
By converting traditional oscillator signals into colored candles, traders can identify market direction more easily.
The indicator works well for both beginners and experienced traders because the signals are easy to interpret.
Green candles highlight bullish momentum, while red candles signal bearish conditions.
With customizable MACD parameters and alert options, the indicator can be adapted to different trading styles and timeframes.
