The Consecutive Candlesticks With Stochastic MT4 forex indicator identifies consecutive high and low candlesticks.
The indicator draws green and red dots together with a Stochastic filter in a separate Metatrader 4 window.
A green dot is a buy signal while a red dot is a sell signal.
The Stochastic filter oscillates between two extremes, 0 and 100.
The 0 value is said to be extremely oversold while the 100 value is said to be extremely overbought.
Like almost any other trading oscillator, it is highly recommended to use the Consecutive Candlesticks oscillator together with a trend following indicator.
Trade the Consecutive Candlesticks oscillator signals in the direction of the underlying trend to increase the success rate of your forex transactions.
Trend up? Trade the green dots.
Trend down? Trade the red dots.
This indicator fits scalping and intraday trading.
Free Download
Download the “consecutive-candles-with-stochastic-filter-indicator.mq4” MT4 indicator
Indicator Chart (EUR/USD D1)
The EUR/USD Daily chart below displays the Consecutive Candlesticks With Stochastic Forex Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Consecutive Candlesticks with Stochastic MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy order when a green dot appears on the chart and the underlying trend is up.
Sell Signal: Open sell order when a red dot appears on the chart and the underlying trend is down.
Trade Exit: Use your own method of trade exit.
Consecutive Candlesticks with Stochastic + 4 Time Frame Hull Trend Forex Scalping Strategy
This scalping strategy combines the Consecutive Candlesticks with Stochastic MT4 Indicator and the 4 Time Frame Hull Trend Indicator for MT4 to help you find quick and high-probability trades on the M1 and M5 charts.
The first indicator displays colored dots showing short‑term momentum signals: trade green dots when the trend is up and red dots when the trend is down.
The second indicator shows trend bias across four time frames using Hull Moving Averages (HMAs): a buy bias is confirmed when all four HMAs are green and a sell bias when all four are purple.
This system is designed for fast markets and quick decision making.
By combining short‑term entry dots with multi‑time frame trend confirmation, you reduce noise and avoid entering counter‑trend moves.
The strategy is ideal for scalpers who want clear entry and exit rules and prefer to trade within a clearly defined trend context.
Buy Entry Rules
- All four HMAs of the 4 Time Frame Hull Trend indicator are green, confirming bullish bias.
- A green dot appears from the Consecutive Candlesticks with the Stochastic indicator.
- Enter a buy trade at the close of the candle that produced the green dot.
- Place a stop loss a few pips below the recent minor swing low or below the low of the entry candle.
- Take profit at a small target between 6 and 15 pips on M1, and between 10 and 20 pips on M5 charts.
Sell Entry Rules
- All four HMAs of the 4 Time Frame Hull Trend indicator are purple, confirming bearish bias.
- A red dot appears from the Consecutive Candlesticks with the Stochastic indicator.
- Enter a sell trade at the close of the candle that produced the red dot.
- Place a stop loss a few pips above the recent minor swing high or above the high of the entry candle.
- Take profit at 6 to 15 pips on M1 or 10 to 20 pips on M5 before any reversal signal appears.
Advantages
- Combining short-term momentum with multi-timeframe trend confirmation improves trade accuracy.
- Visual dots and color-coded HMAs make signals easy to interpret quickly, ideal for scalping.
- Frequent trading opportunities on M1 and M5 charts during active sessions.
- Helps traders stay aligned with the dominant trend, reducing counter-trend losses.
- Clear entry and exit criteria make the strategy systematic and repeatable.
- Works well on major currency pairs with strong intraday movements.
Drawbacks
- Small pip targets require multiple successful trades to build significant profits.
- Fast market moves may trigger tight stop losses before the trade develops.
- Requires constant attention and active monitoring due to the short timeframes.
- Trend alignment may lag slightly on M1 charts, leading to late entries.
Example Case Study 1
On USDJPY M1 during the London session, all four HMAs on the 4 Time Frame Hull Trend indicator turned green, confirming a bullish bias.
After a small pullback, the Consecutive Candlesticks with Stochastic indicator printed a green dot at 148.30.
A buy trade was entered at 148.31 with a stop loss at 148.26.
Price moved quickly upward and hit the 10 pip target at 148.41 within 8 minutes.
The trade was closed with +10 pips before the next red dot appeared.
Example Case Study 2
On EURUSD M5 during the New York session, all four HMAs turned purple on the 4 Time Frame Hull Trend indicator, confirming bearish bias.
After a short retracement, a red dot appeared at 1.0982 on the Consecutive Candlesticks with Stochastic indicator.
A sell order was placed at 1.0981 with a stop loss at 1.0990.
Price dropped steadily over the next 15 minutes and reached the 15 pip take profit at 1.0966.
The trade was closed with +15 pips before the trend began to shift.
Strategy Tips
- Wait for both indicators to confirm the trend before entering a trade to increase the probability of success.
- Trade only during active sessions to capture faster moves and avoid flat market conditions.
- Use micro‑timeframe charts (M1) for quick scalps and M5 for slightly larger targets while maintaining fast entries.
- Combine with simple support and resistance levels to filter entries near key price zones.
- Keep a trade journal to review which currency pairs and times produce the best results for this strategy.
- Adjust the take profit dynamically based on recent price volatility to capture optimal pip gains.
- Exit early if the opposite dot appears on the Stochastic indicator, signaling a possible reversal.
- Consider avoiding trades during low volume periods to reduce the chance of false signals and choppy price action.
- Practice proper risk management, risking only a small percentage of your account on each scalp.
Download Now
Download the “consecutive-candles-with-stochastic-filter-indicator.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (Type of trade arrows? Trend or Range, KPeriod, Slowing, DPeriod, MAMethod) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Oscillator Signals
