About the Candlesticks Recognition Indicator MTF
Candlesticks Recognition Indicator MTF is a practical MetaTrader 4 tool that converts standard price candles into a simplified signal-based chart.
Instead of analyzing multiple candlestick patterns manually, traders can rely on color changes to interpret market direction.
The indicator is plotted directly on the main chart window using blue and orange colored candlesticks.
Blue candles indicate bullish conditions, while orange candles reflect bearish pressure.
Its multi-timeframe logic helps traders stay aligned with broader market direction while executing precise entries.
Free Download
Download the “candlesticks-recognition-indicator-mtf.ex4” MT4 indicator
Key Features
- Transforms standard candles into buy and sell signal candles.
- Uses blue and orange colors for fast market interpretation.
- Displayed directly on the main price chart.
- Supports multi-timeframe analysis.
- Pairs well with other technical indicators.
Indicator Chart
The chart below shows the Candlesticks Recognition Indicator MTF applied to a Forex chart.
Blue candlesticks highlight bullish phases aligned with upward momentum.
Orange candlesticks appear during bearish phases and help identify selling opportunities.
Guide to Trade with Candlesticks Recognition Indicator MTF
Buy Rules
- Confirm the higher timeframe trend is bullish.
- Wait for the first blue candlestick to appear.
- Enter a buy trade after the candle closes.
Sell Rules
- Confirm the higher timeframe trend is bearish.
- Wait for the first orange candlestick to appear.
- Enter a sell trade after the candle closes.
Stop Loss
- Place a stop loss below the previous swing support for buy trades.
- Place a stop loss above the previous swing resistance for sell trades.
Take Profit
- Use a fixed risk-to-reward ratio such as 1:2 or higher.
- Trail profits behind recent swing points.
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Download the “candlesticks-recognition-indicator-mtf.ex4” MT4 indicator
Candlestick Recognition and Dynamic Forex Signals MT4 Scalping Strategy
This MT4 strategy combines the Candlesticks Recognition Indicator MTF and the Dynamic Forex Signals Indicator to create a fast and reliable scalping system.
It is designed for traders who prefer clear visual entries and short-term trades on the 1-minute to 15-minute charts.
The combination works because the Candlestick Recognition Indicator simplifies price action into blue and orange candles, while the Dynamic Forex Signals Indicator provides directional confirmation with its colored trend line.
Together, they help traders identify precise buy and sell moments in active market conditions.
This method is ideal for day traders and scalpers who want structure without overcomplication.
The system provides early entries aligned with micro-trends and allows for easy visual confirmation before entering any position.
Buy Entry Rules
- Wait for a blue candlestick to appear on the chart from the Candlesticks Recognition Indicator.
- Confirm that the Dynamic Forex Signals Indicator line has turned blue, showing an upward trend.
- Open a buy position as soon as both indicators align on the same candle.
- Set the stop loss 10 to 15 pips below the most recent swing low.
- Take profit target between 20 to 30 pips, or close when an orange candle appears.
Sell Entry Rules
- Wait for an orange candlestick to form on the chart.
- Confirm that the Dynamic Forex Signals Indicator line is red, indicating a downward trend.
- Enter a sell position when both signals appear at the same time.
- Set the stop loss 10 to 15 pips above the recent swing high.
- Take profit target between 20 to 30 pips, or exit when a blue candle appears.
Advantages
- Clear and easy visual entries, perfect for beginners and scalpers.
- Combines price action with trend confirmation for higher accuracy.
- Works well in volatile markets and during London or New York sessions.
- Can be used on multiple timeframes for confirmation or scaling trades.
- Helps avoid false signals by requiring double confirmation.
Drawbacks
- It may give fewer signals in low volatility periods.
- Performance can vary depending on the spread and broker execution speed.
- Works best in trending conditions; range-bound markets may create mixed signals.
Example Case Study 1: EUR/USD M5 Chart
On the EUR/USD 5-minute chart, during the London open, a blue candlestick formed around 1.0725, and the Dynamic Forex Signals line turned blue at the same time.
A buy position was entered with a 12-pip stop loss and a 25-pip take profit.
Within 40 minutes, the price climbed to 1.0750, reaching the target for a +25 pip gain.
A clear color change to orange later signaled the exit, confirming the trend shift and protecting profits.
Example Case Study 2: GBP/USD M15 Chart
On GBP/USD, a sell setup appeared after a short consolidation phase.
The chart printed an orange candle at 1.2690, while the Dynamic Forex Signals line switched to red.
A sell order was opened with a stop loss above 1.2710 and a take profit at 1.2660.
The market dropped steadily, hitting the 30-pip target within one trading session.
This example highlights how the dual confirmation can filter out false reversals and catch consistent short-term momentum.
Strategy Tips
- Focus on high-volume sessions such as London and New York for better momentum and cleaner signals.
- Always wait for both indicators to align before entering a trade; this reduces whipsaw losses.
- Test the setup on a demo account first to adjust stop loss and take profit levels to your broker’s conditions.
- Avoid trading during major news events, as sudden volatility can invalidate short-term signals.
- For stronger setups, use higher timeframes like M30 or H1 to confirm the overall trend direction before scalping on lower charts.
Free Download
Download the “candlesticks-recognition-indicator-mtf.ex4” MT4 indicator
FAQ
What does the MTF feature add to this indicator?
The multi-timeframe logic helps align entries with the higher timeframe direction.
This reduces trades taken against broader market momentum.
Can the candle colors be customized?
Yes, traders can modify colors and sensitivity through the inputs tab.
This allows personalization based on chart preferences.
Does the indicator replace traditional candlestick analysis?
It simplifies candlestick interpretation but does not remove the value of price context.
Many traders use it alongside support and resistance analysis.
Summary
Candlesticks Recognition Indicator MTF offers a streamlined way to interpret price movement on MT4 charts.
Its blue and orange candles help traders quickly identify bullish and bearish phases without analysis overload.
The indicator is easy to install, efficient, and adaptable to different trading styles.
With added alert options or pattern filters, its usefulness could be expanded further.
For traders seeking a clean candlestick signal tool, this indicator is a solid technical choice.
