The Bar Trader Buy/Sell Signal indicator for Metatrader 4 is a popular trend following indicator used in many forex strategies and trading systems.
The Bar Trader draws bullish and bearish bars in a sub MT4 window below the activity chart.
A blue colored bar indicates a bullish trend while a red colored bar indicates a bearish trend.
Trading the bar system is utterly simple:
Look for long trades when a blue bar is drawn on the chart; look for sell trades when a red bar is drawn on the chart.
A blank space between the colored bars means the trend is flat or range-bound.
The Bar Trader is good for scalping, day trading and short-term swing trading.
The default indicator input settings (P, n1, n2) can be fully modified directly from the indicator’s inputs tab.
Feel free to experiment with its settings to suit your needs.
Free Download
Download the “wpr-slow.mq4” MT4 indicator
Indicator Chart (AUD/USD H1)
The AUD/USD H1 chart below displays the Bar Trader Buy/Sell Signal forex indicator in action.
Basic Trading Signals
Signals from the Bar Trader Buy Sell Signals MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Initiate a buy trade when the first blue bar appears in the trading window (uptrend).
Sell Signal: Initiate a sell trade when the first red bar appears in the trading window (downtrend).
Trade Exit: Close the open trade when an opposite signal occurs, or use your own method of trade exit.
Bar Trader Buy Sell Signals and Free Forex Scalping MT4 Strategy
This MT4 scalping strategy combines the trend direction of the Bar Trader Buy Sell Signals MT4 Forex Indicator with the fast entry signals of the Free Forex Scalping MT4 Indicator.
It is designed for M1 and M5 charts, making it ideal for quick scalps and short-term intraday trades.
The strategy helps traders capture small, high-probability moves while remaining aligned with the trend.
The Bar Trader Buy Sell Signals indicator uses blue histograms to indicate a buy trend and red histograms to indicate a sell trend.
The Free Forex Scalping indicator generates green histograms for buy signals and red histograms for sell signals.
Trades are taken only when the scalping signal aligns with the overall trend, increasing the likelihood of a successful scalp.
Buy Entry Rules
- The Bar Trader Buy Sell Signals histogram must be blue, confirming a bullish trend.
- Wait for a green histogram to appear on the Free Forex Scalping indicator.
- Enter a buy trade immediately at the close of the candle where the green histogram appears.
- Place the stop loss below the most recent swing low or minor support level.
- Close the trade immediately if a red histogram appears on the scalping indicator or the trend histogram turns red.
- Target 5-15 pips for each scalp trade, depending on market volatility.
Sell Entry Rules
- The Bar Trader Buy Sell Signals histogram must be red, confirming a bearish trend.
- Wait for a red histogram to appear on the Free Forex Scalping indicator.
- Enter a sell trade immediately at the close of the candle where the red histogram appears.
- Place the stop loss above the most recent swing high or minor resistance level.
- Close the trade immediately if a green histogram appears on the scalping indicator or the trend histogram turns blue.
- Target 5-15 pips per scalp trade based on market conditions.
Advantages
- Combines trend confirmation with fast scalp entry signals for higher probability trades.
- Helps traders capture quick intraday moves efficiently on M1 and M5 charts.
- The chart signals help traders recognize setups quickly and efficiently.
- Reduces the risk of countertrend scalps by filtering signals through the trend histogram.
- Effective across different currency pairs and gold, generating frequent trade signals.
Drawbacks
- Requires constant attention due to the fast pace of M1 and M5 scalping.
- Less effective in low volatility or ranging markets where histograms frequently switch colors.
- High-frequency trades can increase transaction costs through spreads and commissions.
Case Study 1
On EURUSD M1 during the London session, the Bar Trader histogram was blue, indicating a bullish trend.
A green histogram appeared on the Free Forex Scalping indicator, signaling a buy.
The trade was entered and closed for 11 pips when a red histogram appeared on the scalping indicator, successfully capturing a small upward move aligned with the trend.
Case Study 2
On USDJPY M5 during the New York session, the Bar Trader histogram turned red, confirming a bearish trend.
A red histogram appeared on the Free Forex Scalping indicator, signaling a sell trade.
The trade was entered and closed for 14 pips when the trend histogram turned blue, effectively capturing a short-term downward move.
Strategy Tips
- Enter trades when the scalping histogram confirms the trend histogram to increase success rates.
- Use M1 charts for fast scalps and M5 charts for slightly longer intraday trades.
- Focus on highly liquid currency pairs and gold to ensure smoother price movements.
- Place stops near recent swing highs or lows to limit risk on quick reversals.
- Close trades promptly when either histogram reverses to protect profits.
- Avoid scalping during low liquidity periods or around major news events.
- Keep a trading journal to track performance across pairs and timeframes for continuous improvement.
- Consider limiting the number of trades per session to avoid overtrading on M1 charts.
Download Now
Download the “wpr-slow.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (P, n1, n2, CountBars) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Trend
