The Trend Candlesticks MT4 forex indicator is an excellent technical tool for scalping and day trading pairs.
The indicator displays colored buy/sell trend candlesticks on the Metatrader 4 chart.
- A buy signal occurs when the candlestick is colored green.
- A sell signal occurs when the candlestick is colored pink.
To yield the best possible results with the Trend Candlesticks indicator, use it together with a longer-period trend trading indicator.
For instance, combine it with a 100-period simple moving average or 50 50-period exponential moving average.
Trade in the direction of the overall trend.
How does it work?
When the candlesticks are positioned above the longer-term moving average, only trade the green candlesticks (buy trades).
When the candlesticks are positioned below the longer-term moving average, only trade the pink candlesticks (sell trades).
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Download the “trend-candlesticks.ex4” MT4 indicator
Indicator Chart (USD/JPY H4)
The USD/JPY 4-Hour chart below displays the Trend Candlesticks Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Trend Candlesticks MT4 indicator are easy to interpret and go as follows:
Buy Signal: Open a buy trade when the Trend Candlesticks MT4 indicator displays a green candlestick on the chart. Be sure to confirm the uptrend. Place a stop-loss below the most recent swing low price.
Sell Signal: Open a sell trade when the Trend Candlesticks MT4 indicator displays a pink candlestick on the chart. Be sure to confirm the downtrend. Place a stop-loss above the most recent swing high price.
Trade Exit: Use your own method of trade exit.
Trend Candlesticks + Best Forex Scalping Indicator Scalping Strategy for MT4
This scalping strategy combines the Trend Candlesticks MT4 Forex Indicator with the Best Forex Scalping Indicator for MT4.
The Trend Candlesticks indicator colors candles: green when the trend is bullish and pink when bearish.
The Best Forex Scalping Indicator adds entry signals via blue arrows for buy and red arrows for sell.
By using the candlestick trend filter together with scalping signal arrows, we aim to enter trades that go with short-term momentum and broader trend direction.
This setup is primarily designed for M1 and M5 charts, aiming for quick scalps on liquid pairs.
Buy Entry Rules
- The current candle must be green, showing a bullish trend via Trend Candlesticks.
- A blue arrow must appear from the Best Forex Scalping Indicator.
- Enter long at the open of the next candle after the arrow appears and while candles stay green.
- Place a stop loss a few pips below the recent minor swing low or below the low of the signal candle.
- Set take profit at 1.5 to 2 times the stop-loss distance, or exit early if the next candle turns pink (trend flip) or a red arrow appears.
Sell Entry Rules
- The current candle must be pink (bearish trend according to Trend Candlesticks).
- A red arrow from the Best Forex Scalping Indicator must appear.
- Enter short at the open of the next candle after the arrow appears and candles remain pink.
- Place a stop loss a few pips above the recent minor swing high or above the high of the signal candle.
- Set take profit at 1.5 to 2 times the stop-loss distance, or exit if the next candle turns green or a blue arrow appears.
Advantages
- The combo filters out counter‑trend scalping attempts by requiring trend confirmation before entry.
- Signals (arrows + candle color) are visually clear, which helps fast decision‑making on M1/M5 charts.
- Defined entry/exit, stop-loss, and take-profit rules improve discipline and risk control.
- Because the trend filter uses candle color, the strategy adapts quickly to changing market conditions rather than static thresholds.
Drawbacks
- On M1 and M5 charts, price noise can cause false arrows or candle‑color flips, leading to bad entries.
- Rapid market moves or spikes can hit stop-losses before price moves in your favor, especially on volatile sessions.
- Strategy might underperform or give many false signals in sideways or low‑volatility markets.
Case Study 1
On EURUSD M1 during a London session, the candles turned green, and the Best Forex Scalping Indicator printed a blue arrow after a small pullback.
The trader entered long at the next candle, placing a stop‑loss 5 pips below the recent swing low and a take‑profit 10 pips above.
Within 7 minutes, the price rallied steadily and hit the take profit.
The candle coloration stayed green, and no red arrow appeared during the move.
The setup offered a clean scalp under good trend alignment and momentum.
Case Study 2
On USDJPY M5 during the New York session, the candles turned pink, indicating a bearish short‑term trend.
A red arrow appeared signaling sell.
The trader entered short at the next candle with a stop‑loss 6 pips above the recent swing high and a take‑profit 12 pips below.
Over the next 12 minutes price dropped, reaching the take‑profit target.
The candles remained pink, and no blue arrow appeared, confirming sustained downward momentum.
Strategy Tips
- Avoid trading during quiet sessions or periods of low volatility when the price tends to drift and produce false signals.
- Use a clean chart layout with only the two indicators to avoid confusion and maintain speed and clarity for scalping.
- Backtest the strategy on demo accounts and multiple pairs to understand win rate, drawdowns, and which conditions work best before trading live.
- Set a daily loss limit to prevent overtrading and making emotional decisions, especially when several trades are taken in quick succession.
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Download the “trend-candlesticks.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend
