The MACD Trend Candles Forex indicator for Metatrader 4 draws buy & sell candlesticks on the chart based on the MACD trading method.
The indicator opens up in the main chart window of the trading platform as green and red colored candlesticks.
It also provides an overall view of the current trend found across multiple time frames.
Buy & Sell Trade Example
- The first green candlestick is a buy signal.
- The first red candlestick is a sell signal.
- Exit and reverse the open position whenever the candlestick changes its color.
The indicator works equally well on all assets (Forex, CFD stocks, Indices, Cryptocurrencies, Commodities, etc.) and shows promising results if used correctly.
Free Download
Download the “Macd trend candles.ex4” indicator for MT4
Indicator Chart (EUR/USD Daily)
The picture below shows the MACD Trend Candles mt4 indicator in action on the trading chart.
Trading Signals (example):
Utilize your own favorite trade entry, stop loss and take profit method to trade with the MACD Trend Candles indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: MACD
Repaint? No.
MACD Trend Candles + AMA Signals MT4 Forex Intraday Strategy
This intraday trading strategy combines the MACD Trend Candles Indicator and the AMA Signals Indicator on MetaTrader 4 (MT4) to identify high-probability buy and sell opportunities.
The MACD Trend Candles provides visual cues through colored candlesticks, while the AMA Signals indicator confirms trend direction via colored dotted lines.
Buy Entry Rules
- Wait for the MACD Trend Candles indicator to display a green candlestick, signaling a potential buy opportunity.
- Confirm that the AMA Signals indicator shows a blue dotted line, confirming an uptrend.
- Enter a buy position at the close of the green candlestick.
- Set a stop loss just below the recent swing low or a fixed number of pips, depending on risk tolerance.
- Set a take profit target using a risk-to-reward ratio of at least 1:2, or exit when the candlestick turns red or the AMA dotted line turns brown.
Sell Entry Rules
- Wait for the MACD Trend Candles indicator to display a red candlestick, signaling a potential sell opportunity.
- Confirm that the AMA Signals indicator shows a brown dotted line, confirming a downtrend.
- Enter a sell position at the close of the red candlestick.
- Set a stop loss just above the recent swing high or a fixed number of pips.
- Set a take profit target using a risk-to-reward ratio of at least 1:2, or exit when the candlestick turns green or the AMA dotted line turns blue.
Advantages
- Clear and easy-to-read visual signals using candlestick colors and dotted trend lines.
- Combines momentum (MACD Trend Candles) with trend direction (AMA Signals) for higher probability trades.
- It can be applied across multiple timeframes, making it versatile for both intraday and swing trading.
- Helps traders identify trend reversals and continuations with minimal lag compared to using a single indicator.
- Reduces guesswork and emotional trading by providing objective entry and exit points.
- Works well in trending markets, improving trade accuracy and potential profit.
Drawbacks
- May produce false signals during sideways or low-volatility markets, leading to small losses or whipsaws.
- The lagging nature of indicators may cause delayed entries, missing part of the initial move.
- Requires active monitoring of charts; not suitable for completely automated or set-and-forget trading.
- Multiple trades in a short period may result in higher transaction costs due to spreads and commissions.
Case Study 1: EUR/USD H1 Buy
On the EUR/USD H1 chart, a green candlestick appeared at 1.1050, followed by a blue dotted line from the AMA Signals indicator.
A buy position was entered at 1.1051 with a stop loss at 1.1031 (-20 pips) and a take profit target at 1.1081 (+30 pips).
The trade moved upward within the session, hitting the take profit for a gain of +30 pips.
Case Study 2: GBP/USD H1 Sell
During the London session, GBP/USD formed a red candlestick at 1.2800, and the AMA Signals indicator showed a brown dotted line.
A sell order was placed at 1.2798 with a stop loss at 1.2818 (-20 pips) and a take profit at 1.2766 (+32 pips).
The price declined steadily and reached the target within 90 minutes, resulting in a +32 pips profit.
Strategy Tips
- Focus on high-liquidity pairs such as EUR/USD, GBP/USD, USD/JPY, and AUD/USD for tighter spreads and cleaner signals.
- Trade during active market sessions, like the London and New York overlap, to increase the likelihood of strong trending moves.
- Combine this strategy with a simple support and resistance analysis to improve trade entries and exits.
- Keep position sizes small and consistent to manage risk, especially when taking multiple trades per day.
- Regularly review past trades to identify patterns where the strategy works best and adjust filters accordingly.
By combining the MACD Trend Candles and the AMA Signals indicators, traders can create a robust MT4 intraday strategy that leverages both trend direction and momentum for high-probability trades.
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Download the “Macd trend candles.ex4” indicator for Metatrader 4
