About the ADX Candlestick Signals Indicator
The ADX Candlestick Signals indicator for MT4 displays bullish and bearish candlesticks based on the position of DI+ and DI-.
When DI+ is above DI-, candlesticks are bullish. When DI- is above DI+, candlesticks are bearish.
Bullish candlesticks are colored lime and dark green, with lime representing strong bullish momentum.
Bearish candlesticks are maroon and red, with red showing strong bearish momentum.
Use this indicator with price action, MACD, moving averages, or Bollinger Bands for more reliable signals.
Trade in the direction of the overall trend.
When the trend is up, focus on lime candlesticks. When the trend is down, focus on red candlesticks.
Free Download
Download the “adx-candles-indicator.ex4” MT4 indicator
Key Features
- Colored candlesticks indicate bullish or bearish momentum.
- Lime and dark green for bullish, maroon and red for bearish.
- Shows strength of momentum with color intensity.
Indicator Chart
The chart displays colored candlesticks reflecting current momentum.
Lime indicates bullish momentum, red indicates bearish momentum.
Traders can quickly see trend direction and identify potential entries aligned with the overall trend.
Guide to Trade with ADX Candlestick Signals Indicator
Buy Rules
- Open a buy trade when a lime candlestick appears.
- Confirm the overall trend is upward using trend indicators.
- Focus on strong bullish candles for higher-probability entries.
- Avoid buying if the overall trend is bearish or market is ranging.
Sell Rules
- Open a sell trade when a red candlestick appears.
- Confirm the overall trend is downward using trend indicators.
- Focus on strong bearish candles for higher-probability entries.
- Avoid selling if the overall trend is bullish or market is ranging.
Stop Loss
- For buy trades, place the stop just below the low of the previous bullish candlestick.
- For sell trades, place the stop just above the high of the previous bearish candlestick.
- Alternatively, use the most recent swing low or high as a reference for the stop.
Take Profit
- Close buy trades when a red candlestick appears.
- Close sell trades when a lime candlestick appears.
- Alternatively, close the trade once a predetermined reward level is reached.
ADX Candlestick Signals + Triple Exponential MA Forex Day Trading Strategy
This MT4 strategy combines the ADX Candlestick Signals Indicator with the Triple Exponential Moving Average (TEMA) Indicator.
The TEMA shows the underlying trend: red line for bullish trend and green line for bearish trend.
The ADX Candlestick Signals highlights specific candlesticks: a lime-colored candle indicates a buy signal, a red-colored candle signals a sell.
By combining the trend filter from the TEMA with visual candlestick signals, this strategy helps catch trend-aligned intraday moves.
It is designed for day trading on M15 and H1 timeframes on major forex pairs.
Buy Entry Rules
- Confirm the TEMA red line indicates a bullish trend.
- Enter a buy trade when an ADX lime-colored candlestick appears.
- Place stop loss 3–5 pips below the low of the signal candle or recent swing low.
- Take profit when the price shows signs of reversal, such as a candlestick with a long upper wick, or a red candlestick appears, indicating potential trend exhaustion.
Sell Entry Rules
- Confirm the TEMA green line indicates a bearish trend.
- Enter a sell trade when an ADX red-colored candlestick appears.
- Place stop loss 3–5 pips above the high of the signal candle or recent swing high.
- Take profit when the price shows signs of reversal, such as a candlestick with a long lower wick, or a lime-colored candlestick appears, indicating potential trend exhaustion.
Advantages
- Combines trend direction with precise candlestick signals for accurate entries.
- Easy to read visually without complex calculations.
- Filtered entries reduce counter-trend trades and improve the success rate.
- Works on M15 and H1 charts, suitable for intraday traders.
- Dynamic take profit based on market behavior allows better adaptation to changing conditions.
- Small stop loss keeps risk minimal per trade.
Drawbacks
- Dynamic take profit requires judgment, which may be challenging for beginners.
- Stop loss may still get hit in very volatile conditions despite being tight.
- Price may not always reach strong support or resistance before reversing, causing partial or early exits.
Example Case Study 1 – EURUSD H1
During an uptrend on EURUSD H1, the TEMA red line indicated a bullish trend.
A lime candlestick appeared at 1.1345, signaling a buy.
Stop loss was set 3 pips below the swing low at 1.1342.
Price moved upward and formed a candlestick with a long upper wick at 1.1408, signaling potential reversal.
The trade was closed at that point for a profit of 63 pips.
Example Case Study 2 – GBPUSD M15
On GBPUSD M15, the TEMA green line indicated a bearish trend.
A red candlestick appeared at 1.2872, triggering a sell trade.
Stop loss was placed 5 pips above the swing high at 1.2877.
The price dropped and later formed a candlestick with a long lower wick near a support zone at 1.2818, signaling a possible reversal.
The trade was closed for a gain of 54 pips.
Strategy Tips
- Use major currency pairs for better liquidity and tighter spreads.
- Check higher timeframe trends (H4 or daily) to avoid trading against the main trend.
- Monitor price action for candlestick signs of exhaustion to determine take profit points.
- Maintain proper position sizing and money management to handle intraday swings.
- Wait for both trend confirmation and candlestick signal before entering a trade.
- Maintain a trading journal noting pair, timeframe, entry, exit, and pip result to review and improve performance over time.
Download Now
Download the “adx-candles-indicator.ex4” Metatrader 4 indicator
FAQ
How do the candlestick colors indicate strength?
Lime and red show strong momentum, while darker shades indicate weaker moves. Strong candles provide higher-probability signals.
Do I need other indicators to trade it?
While it can be used alone, combining it with trend or momentum indicators improves signal accuracy.
Is it suitable for scalping?
Yes, it works well for short-term strategies like scalping and day trading, especially during active market sessions.
Summary
The ADX Candlestick Signals indicator for MT4 gives Forex traders clear insight into market momentum using colored candlesticks.
Lime and red candlesticks highlight bullish and bearish trends, helping to time entries and exits.
This indicator is ideal for spotting short-term trend shifts and aligning trades with overall market direction.
Using it alongside trend-following tools improves trade quality and decision-making efficiency.
