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Day Candle Forex Indicator (MT4)

    The Day Candle indicator for MT4 wraps all candlesticks into one bigger candlestick, and it provides overall trend direction.

    At a glance, the indicator reveals where the overall trend is heading to.

    From the indicator’s inputs, you can choose the day candlestick time frame yourself (default: daily).

    Key Features

    • Reveals overall trend direction
    • Good for breakout trading
    • Pure price action, no lag
    • Well worth adding to your indicator collection

    This indicator can work together with any existing trading strategy or system as a buy/sell trend confirmation tool.

    Free Download

    Download the “ytg_Day_candle.mq4” MT4 indicator

    Trading Chart

    The EUR/USD 1-hour chart below shows the Day Candle Forex indicator in action.

    Trading Signals From The Day Candle Indicator

    BUY:

    • A buy signal is given when the overall trend is going up and the price breaks above the previous day’s high.
    • Set the stop loss a few pips below the previous swing low support.
    • Exit the buy trade for a predetermined profit target or close for a risk-to-reward ratio of 1.5 or better.

    SELL:

    • A sell signal is given when the overall trend is going down and the price breaks below the previous day’s low.
    • Set the stop loss a few pips above the previous swing high resistance.
    • Exit the sell trade for a predetermined profit target or close for a risk-to-reward ratio of 1.5 or better.

    Download Now

    Download the “ytg_Day_candle.mq4” MT4 indicator

    Day Candle and BOS/CHoCH Strategy

    Overview

    This strategy integrates the Day Candle Forex Indicator with the BOS & CHoCH Metatrader 4 Indicator to identify potential entry and exit points in the forex market.

    It’s designed for traders who prefer short-term trading and scalping techniques.

    Indicators Used

    • Day Candle Forex Indicator – Displays a larger timeframe candle (e.g., daily) on lower timeframe charts to provide an overview of the market trend.
    • BOS & CHoCH Metatrader 4 Indicator – Identifies Break of Structure (BOS) and Change of Character (CHoCH) points, indicating potential trend continuations or reversals.

    Timeframes and Pairs

    • Timeframes: M15 (15-minute) and H1 (1-hour)
    • Currency Pairs: Major pairs (e.g., EUR/USD, GBP/USD)

    Buy Entry Conditions

    • The Day Candle Indicator shows a bullish candle, indicating an upward trend.
    • The BOS & CHoCH Indicator identifies a Break of Structure (BOS) to the upside, confirming the continuation of the upward trend.
    • Price retraces to a previous resistance level that has turned into support.

    Sell Entry Conditions

    • The Day Candle Indicator shows a bearish candle, indicating a downward trend.
    • The BOS & CHoCH Indicator identifies a Break of Structure (BOS) to the downside, confirming the continuation of the downward trend.
    • Price retraces to a previous support level that has turned into resistance.

    Exit Strategy

    • Stop Loss: Place below the recent swing low for buy trades or above the recent swing high for sell trades.
    • Take Profit: Aim for a risk-to-reward ratio of at least 1:2.

    Additional Strategy Tips

    • Ensure that the trade direction aligns with the overall market trend indicated by the Day Candle.
    • Use the BOS & CHoCH Indicator to confirm entry points and avoid false signals.
    • Backtest the strategy on historical data to assess its performance before live trading.

    Adjustable Indicator Parameters & Settings

    Time frame, colors, style

    Feel free to explore the indicator’s different parameters and settings to create your own personalized indicator setup.

    More Info About This Tool

    Currency Pairs: works on any currency pair

    Trading Platform: developed for Metatrader 4 (MT4)

    Time Frames: any

    Indicator Type: candlestick

    How to install the Day Candle indicator in Metatrader 4?

    • Copy and paste the ytg_Day_candle.mq4 indicator into the MQL4 indicators folder.
    • You can access this folder from the top menu as follows:
    • File > Open Data Folder > MQL4 > Indicators (paste here)
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