The Trend Bars forex indicator for Metatrader 4 is a well-known trend following histogram technical indicator that works really well.
Trend Bars oscillates above and below the zero level in a separate MT4 trading window below the main activity chart.
The Signals
A buy signal occurs when the histogram moves back above the zero line from below, indicating the trend is upward. The histogram now becomes blue colored.
A sell signal occurs when the histogram moves back below the zero line from above; the trend is downward. The histogram now becomes red colored.
The indicator works for any timeframe and currency pair. Scalpers, day traders, and swing traders can benefit from the Trend Bars indicator.
For scalping and day trading, use it during the London, New York, and Tokyo trading sessions.
Feel free to experiment with the indicator input parameters.
Free Download
Download the “trend-bars.ex4” MT4 indicator
Indicator Chart (GBP/USD H1)
The GBP/USD 1-Hour chart below displays the Trend Bars Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Trend Bars MT4 indicator are easy to interpret and go as follows:
Buy Signal: Go long when the Trend Bars technical indicator changes its color from red histograms to blue histograms. Place a stop-loss below the previous swing low price.
Sell Signal: Go short when the Trend Bars technical indicator changes its color from blue histograms to red histograms. Place a stop-loss above the previous swing high price.
Trade Exit: Use your own method of trade exit.
Trend Bars + Elite Pro Scalper Scalping Strategy for MT4
This scalping strategy combines the Trend Bars MT4 Forex Indicator with the Elite Pro Scalper MT4 Indicator.
The Trend Bars indicator shows a blue histogram for a bullish trend and a red histogram for a bearish trend.
The Elite Pro Scalper adds arrows for precise entries: blue for buy and red for sell.
This combination filters trades for trend alignment and fast momentum, making it suitable for M1 and M5 charts on major pairs.
Buy Entry Rules
- The Trend Bars histogram indicator is blue.
- Elite Pro Scalper shows a blue arrow.
- Enter long at the open of the next candle while the histogram remains blue.
- Stop loss a few pips below the recent swing low or signal candle low.
- Take profit can be set at the next resistance level, a round number, or when the histogram starts turning red or a red arrow appears.
- Partial profits can also be taken at short-term targets.
Sell Entry Rules
- The Trend Bars histogram is red.
- Elite Pro Scalper shows a red arrow.
- Enter short at the open of the next candle while the histogram remains red.
- Stop loss a few pips above the recent swing high or signal candle high.
- Take profit can be set at the next support level, a key psychological level, or when the histogram turns blue or a blue arrow appears.
- Scaling out on partial profits is recommended for volatile pairs.
Advantages
- Combines trend filtering with fast entry signals for higher probability trades.
- Visual simplicity allows quick decisions on M1 and M5 charts.
- Flexible take profit options allow for adaptation to market volatility and structure.
- Adaptable to multiple currency pairs with good liquidity.
- Many opportunities per session due to short timeframe scalping.
Drawbacks
- Noisy or choppy markets may produce false signals and stop-outs.
- Scalping requires constant attention and fast execution.
- Small pip targets make spreads and transaction costs more significant.
- Indicator lag may reduce profit potential on fast moves.
Case Study 1
On EURUSD M1 during the London session, the histogram turned blue, blue arrow appeared after a minor pullback.
Entered long at next candle, stop loss below swing low, and took partial profit at 5 pips with the rest at next resistance 12 pips higher.
Price moved steadily upward, hitting the final target within 7 minutes.
Histogram remained blue, and no red arrow appeared.
Case Study 2
On GBPUSD M5 during the New York session: histogram turned red, red arrow appeared signaling a sell.
Entered short at next candle, stop loss above swing high, took partial profit at 8 pips, and exited fully at next support level 18 pips lower.
Price dropped steadily and reached the final target within 12 minutes.
Strategy Tips
- Focus on currency pairs with tight spreads to maximize the profit potential of small scalping moves.
- Monitor the overall market trend on higher timeframes (H1 or H4) to ensure scalping trades are aligned with broader trends.
- Wait for pullbacks or small consolidations before entering trades to improve entry quality.
- Use a timer or alerts to avoid missing fast signals on M1 or M5 charts.
- Consider trading only during peak volatility periods within the session to reduce the risk of false signals.
- Track your trades and analyze which setups produce the most consistent results to refine your strategy over time.
- Use smaller lot sizes for multiple rapid trades to manage risk and avoid large drawdowns.
- Adjust take profit levels dynamically based on recent support and resistance or round numbers rather than fixed multiples.
Download Now
Download the “trend-bars.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (range periods, price smoothing, index smoothing, alert on) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend
