The Simple Trend Bar with Signal Forex indicator, designed for Metatrader 5, is an effective and versatile trend trading tool suitable for scalpers, day traders, and swing traders.
Once applied to the trading chart, this indicator displays a trend bar in two distinct colors, signaling potential buy and sell opportunities.
Here’s how the straightforward trading logic operates:
- A green colored trend bar provides a buy trade opportunity.
- A red colored trend bar generates a sell trade opportunity.
To cater to your preferences, you have the flexibility to customize the indicator by adjusting inputs and parameters such as the period and trend bar colors.
Before engaging in live trading, it is recommended to become familiar with this technical indicator and thoroughly test it on a demo account.
Below are some helpful tips specifically tailored for scalpers and day traders utilizing this indicator:
- For reduced trading costs, consider using the simple Trend Bar indicator on currency pairs with narrower spreads.
- Short-term traders will find more frequent trading opportunities during the London and New York trading sessions.
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simplebars_signal.mq5 Indicator (MT5)
Chart Example
The following image shows what the simple Trend Bar indicator looks like when applied to the MT5 charting platform.
How To Buy And Sell Pairs Utilizing The Simple Trend Bar Forex Indicator?
Find a simple trading example below:
Buy Signal
- A buy signal is triggered when the green colored trend bar shows up in the separate chart window.
- Execute a buy trade and set a stop loss order below the most recent support level.
- Exit the buy trade for a pips profit target of your preference, for example, +50 pips on the 1-hour chart.
- Optional: await a red colored trend bar before closing the buy trade.
Sell Signal
- A sell signal is triggered when the red colored trend bar shows up in the separate chart window.
- Execute a sell trade and set a stop loss order above the most recent resistance level.
- Exit the sell trade for a pips profit target of your preference, for example, +20 pips on the 5-minute chart.
- Optional: await a green colored trend bar before closing the sell trade.
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simplebars_signal.mq5 Indicator (MT5)
MT5 Momentum Trend Strategy Using Simple Trend Bar Indicator with Signal and Momentum Indicator
Overview
This strategy combines the straightforward trend detection of the Simple Trend Bar Indicator with momentum confirmation from the Momentum Indicator.
It helps traders identify strong trend moves with increasing momentum for safer entry and exit points.
Timeframe
Works best on M15, M30, and H1 charts, but can be adjusted for shorter or longer timeframes depending on trading style.
Indicators Used
- Simple Trend Bar Indicator with Signal – highlights trend direction with colored bars and signals.
- Momentum Indicator for MT5 – measures the strength of price movement to confirm the trend’s momentum.
Buy Entry Rules
- The Simple Trend Bar Indicator displays green bars indicating an uptrend.
- The Momentum Indicator is rising and preferably above the 100 level, confirming increasing bullish momentum.
- Enter a buy trade when both indicators align bullishly.
- Place a stop-loss below the recent swing low.
- Take profit at the next resistance or when the momentum starts to decline.
Sell Entry Rules
- The Simple Trend Bar Indicator shows red bars signaling a downtrend.
- The Momentum Indicator is falling and preferably below the 100 level, confirming bearish momentum.
- Enter a sell trade when both indicators confirm bearish conditions.
- Set a stop-loss above the recent swing high.
- Take profit near support or when momentum weakens.
Tips for Effective Trading
- Avoid trading during low volatility or ranging markets.
- Use additional confirmation, like volume spikes or candlestick patterns, for higher accuracy.
- Monitor economic calendar events to avoid volatile news spikes.
- Adjust stop-loss and take-profit levels based on pair volatility and timeframe.
Strategy Conclusion
Combining the Simple Trend Bar Indicator with the Momentum Indicator provides a powerful way to trade strong trends with momentum confirmation.
This strategy aims to capture sustained moves while minimizing false signals.
Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the simplebars_signal.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
