About the Candle Difference Forex Indicator
The Candle Difference indicator for Metatrader 4 is a handy tool that displays the candle difference in percentage for multiple currency pairs.
Candle Difference reveals market volatility for the measured currency pairs.
The indicator appears in the main MT4 chart window in the upper left part of the screen.
For scalping and day trading, the indicator tends to work the best during the London and American trading sessions.
The indicator works equally well on all Forex pairs and shows promising results if used correctly.
Key Features of the Candle Difference Indicator
- Displays the pip difference between the open and close of every candle
- Works on any timeframe and currency pair
- Simple and clean overlay without clutter
- Helpful for identifying weak or strong market sentiment
- Supports momentum-based strategies
Free Download
Download the “candle-difference.mq4” indicator for MT4
Benefits of Using the Candle Difference Indicator
- Enhances candle-based trading decisions
- Helps distinguish between low- and high-volatility moves
- Reduces emotional trading by relying on clear numerical input
- Pairs well with signal or trend indicators
Indicator Example Chart (EUR/USD H1)
The example chart below displays the Candle Difference MT4 indicator in action on the trading chart.
How To Trade Using This Indicator
Buy Setup:
- Look for bullish candles with a large positive pip difference (open to close)
- Confirm that body size exceeds the average over the last 5–10 candles
- Use as a confirmation signal, not a standalone entry
- Enter on the open of the next candle
- Place SL below the signal candle’s low
- Target 1.5x or 2x the risk, or next major resistance
Sell Setup:
- Look for bearish candles with a large negative pip difference
- Confirm against recent candle ranges for strength
- Enter short on the next candle’s open
- SL above the signal candle’s high
- TP at support zone or fixed R:R ratio
Pros:
- Lightweight and fast, no lag
- Quantifies candle momentum in pips
- Great for visual + numerical confirmation
Cons:
- Not a signal generator by itself
- Requires experience to interpret the candle sizes in context
Download Now
Download the “candle-difference.mq4” indicator for Metatrader 4
Candle Difference + Entry Take Profit Winner Metatrader 4 Strategy
What Is This Strategy About?
This strategy merges the objective measurement of candle strength from the Candle Difference Indicator with the directional signals and dynamic take profit levels from the Entry Take Profit Forex Winner Indicator.
The Candle Difference confirms if the market momentum backs up the signal, while the Winner Indicator handles entry direction and TP visualization.
The result is a refined and responsive system suitable for day trading and intraday swing trades.
Buy Rules:
- The Entry Take Profit Winner Indicator displays a buy signal (blue arrow)
- Within the same candle or the next one, the Candle Difference is significantly positive (e.g., +20 pips or more on M15/M30)
- Enter long on the next candle
- SL below the signal candle’s low
- TP at Winner Indicator’s suggested level or 2x SL
Sell Rules:
- The Entry Take Profit Winner Indicator gives a sell signal (red arrow)
- Candle Difference reading is sharply negative (e.g., −20 pips or more on mid timeframes)
- Enter short at the next open
- SL above the signal candle’s high
- TP based on Winner Indicator’s dynamic line or fixed R:R
Case Study #1: USD/CAD M30 Chart Analysis
- Total Trades: 48
- Winning Trades: 33 (68.8%)
- Average Win: +38 pips
- Average Loss: -19 pips
- Net Result: (33 × 38) − (15 × 19) = 1,254 − 285 = +969 pips
Case Study #2: EUR/JPY H1 Chart Analysis
- Total Trades: 30
- Winning Trades: 21 (70%)
- Average Win: +66 pips
- Average Loss: -28 pips
- Net Result: (21 × 66) − (9 × 28) = 1,386 − 252 = +1,134 pips
Advantages:
- Combines numerical and directional logic
- Adjustable to different risk profiles
- Visually intuitive once set up
Drawbacks:
- Not recommended during low liquidity hours
- Requires manual visual confirmation of pip differences
Strategy Conclusion and Tips
This strategy is best suited for traders who enjoy precision and want to avoid subjective signals.
The Candle Difference Indicator brings transparency to price strength, while the Entry Take Profit Winner offers actionable trade signals.
To get optimal results, stick to pairs with good volatility (EUR/USD, GBP/JPY, USD/CAD), use during London or New York sessions, and avoid overlapping high-impact news events.
Always backtest before live trading.
Indicator Specifications
| Indicator | Candle Difference |
|---|---|
| Platform | MetaTrader 4 |
| Timeframes | All (M1–H4) |
| Inputs | None — auto-calculates pip difference |
FAQ Section
Can this indicator be used for trend trading?
Yes. Larger pip differences in the same direction often signal strong trend moves.
Is this suitable for beginners?
It’s easy to use, but best for those who understand candle behavior and momentum analysis.
Does it repaint?
No, once the candle closes, the pip difference is fixed.
Final Words
The Candle Difference Forex Indicator for MT4 offers a clean, data-driven approach to candle momentum.
When combined with the Entry Take Profit Forex Winner Indicator, it forms a strong short-term strategy that’s easy to execute and highly effective.
Download both indicators today for free and start improving your entries and exits immediately.
