Madro Golden Filter is a free mt4 (Metatrader 4) trend indicator that displays accurate buy & sell arrows in the bottom chart of the trading platform.
The indicator can be used as a standalone trading tool for both trade entry and exit.
It can also be used as an additional trend filter that works together with an existing strategy of your system of preference.
Buy & Sell Trade Example
- An up arrow represents a buy signal.
- A down arrow represents a sell signal.
- Reverse the open trade whenever an opposite signal arrow appears on the chart.
For scalping the lower time frames, the indicator performs best during the London and New York trading sessions.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “Madro golden filter.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The picture below shows the Madro Golden Filter mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the Madro Golden Filter indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Signals
Does the indicator repaint? No.
Scalping Strategy: Madro Golden Filter & Holt Double Exponential Smoothing Trend (MT4)
This scalping strategy combines the Madro Golden Filter Indicator and the Holt Double Exponential Smoothing Trend Indicator on MetaTrader 4 (MT4) to identify quick high-probability trades.
The Madro Golden Filter provides clear trend direction with UP and DOWN arrows.
The Holt Double Exponential Smoothing Trend indicator confirms momentum with green and orange histogram bars.
This strategy works well on M1 and M5 charts for pairs like EUR/USD, USD/JPY, and GBP/USD.
Buy Entry Rules
- Wait for the Madro Golden Filter to display a white UP arrow, indicating a buy trend.
- Confirm that the Holt Double Exponential Smoothing Trend histogram is green, indicating bullish momentum.
- Enter a buy position when both conditions are met.
- Set a stop loss below the most recent swing low or a fixed number of pips (e.g., 10-15 pips).
- Set a take profit target at a nearby resistance level or aim for a 1:1.5 risk-to-reward ratio.
Sell Entry Rules
- Wait for the Madro Golden Filter to display a white DOWN arrow, indicating a sell trend.
- Confirm that the Holt Double Exponential Smoothing Trend histogram is orange, indicating bearish momentum.
- Enter a sell position when both conditions are met.
- Set a stop loss above the most recent swing high or a fixed number of pips (e.g., 10-15 pips).
- Set a take profit target at a nearby support level or aim for a 1:1.5 risk-to-reward ratio.
Advantages
- Combines trend and momentum indicators for more reliable scalping signals.
- Clear visual signals reduce decision-making time during fast-moving markets.
- Works well on M1 and M5 charts for intraday scalping.
- Helps identify short-term trend reversals and continuations effectively.
Drawbacks
- Scalping can result in higher transaction costs due to tight stop losses and frequent entries.
- Overtrading is possible if signals are followed blindly without confirmation.
- Limited effectiveness on low-volume or exotic currency pairs.
Case Study 1: EUR/USD M1 Buy
On the EUR/USD M1 chart, a white UP arrow appeared on the Madro Golden Filter, and the Holt Double Exponential Smoothing Trend histogram was green.
A buy position was entered at 1.1050.
The stop loss was set at 1.1040 (-10 pips), and the take profit target was set at 1.1065 (+15 pips).
The trade hit the take profit level within 20 minutes, resulting in a +15 pip gain.
Case Study 2: USD/JPY M5 Sell
During the Tokyo session on USD/JPY M5, a white DOWN arrow appeared on the Madro Golden Filter, and the Holt Double Exponential Smoothing Trend histogram turned orange.
A sell position was entered at 148.20.
The stop loss was set at 148.35 (+15 pips), and the take profit target was 147.95 (-25 pips).
The price moved downward and reached the take profit level within the session, resulting in a +25 pips profit.
Strategy Tips
- Use M1 and M5 charts for faster scalping opportunities.
- Focus on major pairs like EUR/USD, USD/JPY, and GBP/USD for better liquidity and tighter spreads.
- Keep positions small and apply strict risk management.
- Monitor market sessions to trade during higher volatility periods.
- Combine with support and resistance levels to improve trade accuracy.
By combining the Madro Golden Filter and the Holt Double Exponential Smoothing Trend, traders can create an effective MT4 scalping strategy that leverages both trend direction and momentum for high-probability trades.
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Download the “Madro golden filter.mq4” indicator for Metatrader 4
