About the Tail Bar Indicator
The Tail Bar indicator for MT5 highlights bullish and bearish tail bar formations in a dedicated window below the main price area.
It focuses on rejection candles that often signal potential reversals or continuation moves.
A positive tail bar appears in sea-green and reflects strong rejection of lower prices.
A negative tail bar appears in magenta and signals rejection of higher prices.
These patterns help traders understand where buyers or sellers stepped in aggressively.
The indicator allows you to customize the tail bar up color and tail bar down color to match your chart template.
For best results, combine it with a reliable trend indicator so you only trade tail bars that align with the dominant market direction.
Used correctly, it improves entry timing and helps refine exits with price action precision.
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Key Features
- Displays bullish and bearish tail bars in a separate window.
- Sea-green bars indicate bullish rejection.
- Magenta bars indicate bearish rejection.
- Customizable colors for both bullish and bearish tail bars.
- Pairs effectively with trend-following indicators.
Indicator Chart
The Tail Bar indicator prints colored bars beneath the main price area to mark rejection candles.
Sea-green bars highlight bullish tail formations, while magenta bars identify bearish rejection patterns.
When aligned with the prevailing trend, these tail bars provide strong entry signals and help traders avoid counter-trend setups.
Guide to Trade with the Tail Bar Indicator
Buy Rules
- Confirm that the overall trend is bullish using a trend indicator.
- Wait for a sea-green positive tail bar to appear in the indicator window.
- Ensure the tail forms near support or during a pullback.
- Open a buy trade at the close of the confirmation candle.
Sell Rules
- Confirm that the overall trend is bearish using a trend indicator.
- Wait for a magenta negative tail bar to appear in the indicator window.
- Ensure the tail forms near resistance or during a retracement.
- Open a sell trade at the close of the confirmation candle.
Stop Loss
- For buy trades, place the stop loss below the low of the tail bar candle.
- For sell trades, place the stop loss above the high of the tail bar candle.
Take Profits
- Close buy trades if a magenta tail bar forms against your position.
- Close sell trades if a sea-green tail bar forms against your position.
- Alternatively, target a predefined risk-to-reward ratio such as 1:2.
- Advanced traders may trail profits behind new tail bar confirmations.
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FAQ
What makes a tail bar significant?
A tail bar becomes significant when the wick is noticeably longer than the candle body and shows strong rejection of a price level.
Which trend indicator works best with it?
You can combine it with moving averages, a trend filter, or a channel-based indicator.
The key is to trade tail bars only in the direction of the dominant trend.
Is it suitable for scalping?
Yes. On lower timeframes like M5 and M15, tail bars appear frequently. Focus on high-liquidity sessions and tight-spread pairs for better execution.
Summary
The Tail Bar indicator gives traders a focused way to identify price rejection patterns.
Its simple color-coded design makes it easy to spot bullish and bearish tails instantly.
When combined with a strong trend indicator, it becomes a powerful entry timing tool.
Traders who apply disciplined risk management and trade with the trend can use it to enhance precision and consistency.
