The Candlesticks Recognition Indicator MTF indicator for Metatrader 4 transforms the default candlesticks into an easy-to-use buy/sell candlestick chart.
The indicator appears in the main chart window in the form of blue and orange colored candlesticks.
Candlesticks Recognition Indicator MTF is a versatile and lightweight technical indicator that won’t slow down your trading platform.
Key Points
- Provides buy & sell candlestick signals.
- Can be combined with other technical indicators.
- Excellent indicator for beginners
- Well worth adding to your indicator collection.
Candlesticks Recognition Indicator MTF can work together with any existing trading strategy or system as an additional candlestick pattern indicator.
Free Download
Download the “candlesticks-recognition-indicator-mtf.ex4” MT4 indicator
Indicator Chart (EUR/USD H1)
The EUR/USD H1 chart below shows the Candlesticks Recognition Indicator MTF Forex indicator in action.
Basic Trading Signals
Signals from the Candlesticks Recognition Indicator MTF indicator for Metatrader 4 are easy to interpret and go as follows:
BUY:
- Open a buy position when the first blue candlestick appears on the chart and the overall trend is upwards.
- Set a stop loss below the previous swing support.
- Utilize your own take-profit strategy.
SELL:
- Open a sell position when the first orange candlestick appears on the chart and the overall trend is downwards.
- Set a stop loss above the previous swing resistance.
- Utilize your own take-profit strategy.
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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.
This combined system of the Candlesticks Recognition Indicator and Dynamic Forex Signals Indicator offers a practical way to trade fast-moving markets with clarity and confidence.
It blends the simplicity of color-based candles with the reliability of directional confirmation for consistent scalping opportunities on MT4.
Free Download
Download the “candlesticks-recognition-indicator-mtf.ex4” MT4 indicator
Adjustable Parameters & Settings
Candles to show, colors, width, style.
Feel free to explore the indicator’s different parameters and settings to create your own personalized indicator setup.
More Info About This Indicator
Supported currency pairs: Any
Trading Platform: Metatrader 4 (MT4)
Time Frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: Candlestick
