About the Indicator
The Colored Woodies Forex Indicator for MetaTrader 4 is a versatile tool designed to assist traders in identifying potential buy and sell signals.
By combining the Woodies CCI with color-coded histograms, it provides clear visual cues to help traders make informed decisions.
Buy & sell signal
- A buy signal occurs as soon as the Colored Woodies histogram crosses the 0.00 level bottom-up.
- A sell signal occurs as soon as the Colored Woodies histogram crosses the 0.00 level top-down.
Free Download
Download the “coloured-woodie.mq4” indicator for MT4
Key Features
- Color-coded histograms for easy trend identification
- Based on the Woodies CCI methodology
- Compatible with all currency pairs
- Suitable for various timeframes
- Free to download and use
Indicator Example Chart (EUR/USD H1)
Example of the Colored Woodies Forex Indicator in action.
How To Trade Using This Indicator
Entry Signals
Buy Signal: Enter a buy position when the histogram turns blue, indicating bullish momentum.
Sell Signal: Enter a sell position when the histogram turns red, indicating bearish momentum.
Stop Loss and Take Profit
Set your stop loss below the recent swing low for buy trades and above the recent swing high for sell trades.
For take profit, consider using a risk-reward ratio of 1:2 or adjust based on market conditions.
Download Now
Download the “coloured-woodie.mq4” indicator for Metatrader 4
Colored Woodies + Moving Average Trend Sniper MT4 Strategy
This strategy brings together the visual clarity of the Colored Woodies Forex Indicator.
This indicator combines traditional Woodies CCI signals with a colored histogram, providing intuitive buy and sell cues.
It pairs perfectly with the smooth trend recognition of the Moving Average Trend Sniper MT4 Indicator.
This tool uses an exponential moving average whose color shifts signal the current trend direction.
In essence, when both tools align, you get a clean, high-probability entry aligned with momentum.
The Colored Woodies gives early hints about momentum shifts via histogram color transitions, while the MA Trend Sniper confirms the broader direction through its color-coded moving line.
Pairing them brings together early momentum detection and trend validation into one streamlined system.
Buy Rules
- Wait for the Colored Woodies histogram to turn bullish (e.g., blue bars signaling a positive reading based on Woodies + CCI).
- Confirm the Moving Average Trend Sniper line has turned deep sky blue, indicating an uptrend is underway.
- Enter a long position at the close of the confirming candle when both conditions align.
- Set a stop loss just below the recent swing low.
- Target a risk-to-reward ratio of at least 1:2, or use a trailing stop to lock in gains.
Sell Rules
- Wait for the Colored Woodies histogram to turn bearish (e.g., red histogram bars indicating negative momentum).
- Ensure the Moving Average Trend Sniper line is red, confirming a downtrend.
- Enter a short position once both signals are in place.
- Place the stop loss just above the recent swing high.
- Apply a 1:2 risk-reward ratio, or trail the stop as the move develops.
Trader Case Studies
Below are two examples of traders who applied this strategy to different currency pairs and timeframes, showing how it can work in various market conditions.
Lucas M – Portugal
Lucas M, a swing trader from Portugal, used this strategy on EUR/USD and USD/CHF over a month. By combining histogram signals and the colored MA, he captured clean trend entries and ended with +342 pips in net profit.
Aisha K – Malaysia
Aisha K, a day trader from Malaysia, applied it on M15 and H1 charts trading GBP/JPY and AUD/USD. In just three weeks, her disciplined adherence to signal alignment resulted in +295 pips in gains.
Disclaimer: These case studies are for educational purposes only. Trading results will vary depending on market conditions, risk management, and individual discipline.
Advantages
- Visual and intuitive: histogram colors and MA line change give clear entry signals.
- Combines momentum (Colored Woodies) and trend confirmation (Trend Sniper) for higher-probability trades.
- Works across multiple timeframes—from scalping to swing setups.
Drawbacks
- May lag during choppy, ranging markets—false alignments are possible.
- Requires patience for both signals to align; fewer trades might occur.
- Trend reversals can lag, leading to late exits if the MA line remains colored post-reversal.
Strategy Conclusion and Tips
This strategy offers a clean, disciplined way to trade with momentum and trend alignment.
The Colored Woodies gives early momentum entries, while the Moving Average Trend Sniper confirms overall trend direction.
To get the most out of it, avoid trading during major news events, manage risk carefully (no more than 2% per trade), and back-test the setup on a demo account to build confidence.
When both indicators align cleanly, this method can deliver reliable and visually satisfying trade opportunities.
FAQ
Is this indicator compatible with MetaTrader 5?
No, this version is specifically designed for MetaTrader 4. However, similar indicators are available for MetaTrader 5.
Can I use this indicator for scalping?
Yes, the Colored Woodies Indicator is suitable for scalping, especially when used on lower timeframes.
Final Words
The Colored Woodies Forex Indicator is a valuable tool for traders seeking to enhance their technical analysis.
By providing clear visual signals, it simplifies decision-making and can be a powerful addition to your trading strategy.
