About the Semaphore Identical Candles Indicator
The Semaphore Identical Candles indicator for MT4 provides precise trading signals by analyzing candlestick trends across multiple timeframes.
It identifies when all candles in the selected timeframe are bullish or bearish and generates arrows on the chart accordingly.
A blue arrow indicates a buy signal, showing that all candles in the chosen timeframe are bullish.
A red arrow signals a sell opportunity, meaning all candles are bearish.
Combining it with a longer-term trend-following tool, such as a 100-period exponential moving average, can filter out countertrend signals and improve trade accuracy.
This tool is especially useful for scalping, day trading, and short-term swing trading, providing actionable signals in alignment with dominant candlestick trends.
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Download the “Identical candles.mq4” MT4 indicator
Key Features
- Generates buy and sell arrows based on all candles in a selected timeframe.
- Helps identify short-term bullish and bearish trends.
- Works with trend filters for improved trade accuracy.
Indicator Chart
The Semaphore Identical Candles indicator appears beneath the main price area and plots blue and red arrows directly on the chart.
Blue arrows signal bullish candlestick trends and potential buy trades. Red arrows signal bearish trends and potential sell trades.
Guide to Trade with Semaphore Identical Candles Indicator
Buy Rules
- Wait for a blue arrow to appear on the chart.
- Confirm the overall trend is bullish with a longer-term moving average.
- Open a buy trade when the arrow aligns with trend direction.
- Avoid countertrend trades against a confirmed downtrend.
Sell Rules
- Wait for a red arrow to appear on the chart.
- Confirm the overall trend is bearish with a longer-term moving average.
- Open a sell trade when the arrow aligns with trend direction.
- Avoid countertrend trades against a confirmed uptrend.
Stop Loss
- Place the stop below the recent swing low for buy trades.
- Place the stop above the recent swing high for sell trades.
- Adjust the stop for volatility or nearby support/resistance zones.
Take Profit
- Close buy trades if a red arrow appears.
- Close sell trades if a blue arrow appears.
- Secure partial profits near key support or resistance levels.
Semaphore Identical Candles Indicator and 49/89 EMA Forex Scalping Strategy MT4
This MT4 scalping strategy combines precise entry timing with reliable trend confirmation by using the Semaphore Identical Candles Indicator together with the 49 89 Colored EMA Indicator System.
The idea behind this approach is simple.
The semaphore indicator highlights short term exhaustion points with clear arrows, while the EMA system defines the dominant intraday trend.
When both indicators align, the probability of a clean scalp increases significantly.
This strategy is designed for traders who prefer fast decisions and better trading signals.
Because it follows the trend and avoids countertrend entries, it suits both beginners and experienced traders who want a structured scalping method.
Buy Entry Rules
- Time frame is M5 or M15 during active market sessions.
- The 49 and 89 EMA lines are both green, confirming a bullish trend.
- A blue arrow appears from the semaphore identical candles indicator.
- Enter a buy trade at the close of the candle where the blue arrow appears.
- Stop loss is placed a few pips below the most recent swing low.
- The take profit is set at 10 to 25 pips, depending on market volatility.
Sell Entry Rules
- Time frame is M5 or M15 during active market sessions.
- The 49 and 89 EMA lines are both red, confirming a bearish trend.
- A red arrow appears from the semaphore identical candles indicator.
- Enter a sell trade at the close of the candle where the red arrow appears.
- Stop loss is placed a few pips above the most recent swing high.
- The take profit is set at 10 to 25 pips, depending on market volatility.
Advantages
- Combines precise entry timing with clear trend direction for higher quality trades.
- Suitable for short term scalping with limited market exposure.
- Works across multiple currency pairs without changing settings.
- Helps traders avoid emotional entries by following defined conditions.
- It can be adapted easily to different volatility environments.
Drawbacks
- Performance decreases during flat or choppy market phases.
- Not ideal for traders who prefer a higher time frame or swing trading.
- False signals may occur during sudden news driven price spikes.
Example Case Study 1
On EURUSD M5 during the London session, price was trending upward with both the 49 and 89 EMA lines clearly green.
After a short pullback, a blue arrow appeared from the semaphore identical candles indicator near the EMA zone.
A buy trade was entered at candle close.
The stop loss was placed 2 pips below the recent low.
Price resumed the bullish move and reached an 18 pip take profit within 20 minutes.
The EMA trend filter kept the trade aligned with momentum.
Example Case Study 2
On GBPJPY M15 during the New York session, the 49 and 89 EMA lines turned red and began to separate, signaling a strong bearish trend.
After a minor retracement, a red arrow appeared on the chart.
A sell trade was opened at candle close with a 5 pip stop loss above the recent high.
Price continued downward and hit a 25 pip take profit later in the session.
The combination of arrow timing and EMA direction prevented an early or late entry.
Strategy Tips
- Trade only one or two currency pairs to stay focused and read price behavior better.
- Use the same time frame consistently to build rhythm and confidence.
- Avoid entering trades when candles are unusually large or erratic.
- Reduce position size during periods of higher spread or lower liquidity.
- Keep a simple trading journal to note session performance and mistakes.
- Stop trading after reaching a daily profit target to protect gains.
- Do not try to recover losses immediately; wait for the next clean setup.
- Pay attention to session opens where momentum often increases.
- Regular breaks help maintain concentration during fast scalping sessions.
Download Now
Download the “Identical candles.mq4” Metatrader 4 indicator
FAQ
Can I use multiple timeframes simultaneously?
Yes. You can select any timeframe from 1-minute to monthly in the input settings, allowing you to adapt signals to your trading style.
Is it better for trending or ranging markets?
The indicator performs best in trending markets. In sideways markets, signals may occur less frequently or produce false entries.
Can I combine this indicator with other tools?
Yes. Using it with a longer-term moving average or trend filter improves signal reliability and reduces countertrend trades.
Summary
The Semaphore Identical Candles indicator provides actionable short-term trading signals by identifying bullish or bearish candlestick trends across multiple timeframes.
Its arrow signals help traders enter trades aligned with market momentum.
When combined with a longer-term trend filter, it improves accuracy and reduces false entries.
It is suitable for scalping, day trading, and short-term swing trading, giving traders a simple yet effective tool to trade strong candlestick trends.
