Free Forex Indicators (MT4), Trend Following Indicators

MA Candles Two Colors Indicator

The MA Candles Two Colors Indicator is a beginner-level momentum indicator for MT4 users. If you’re looking for a simple momentum indicator that works on all timeframes, the MA Candles Two Colors indicator is the one that might match your trading requirements.

Moving Averages are the most commonly used tools for identifying market trends. There are different forms of moving average applications like single or dual MAs, and crossovers between MAs, etc. The fact is, applying multiple moving averages in a single chart might lead to confusion and be challenging for beginners. The MA Candles Two Colors indicator uses its moving averages in the background and only shows the trend signals for making it more convenient for the trend-oriented traders.

MA Candles Two Colors Indicator Overview

The MA Candles Two Colors Indicator uses a 34-period moving average in three different forms which are EMA, SMMA, and LWMA. These MAs plot crossovers in the background for generating the trend signals.

MA Candles Two Colors Indicator

Once a trend signal is confirmed, the indicator immediately changes the color of the candles for indicating the upcoming trend direction. The blue candles signal for a bullish trend and the red candles signal for a bearish trend condition of the price.

MA Candles Two Colors Indicator Explained

The EMA offers a better insight into the recent price movements and the condition of the current market trend. On the other hand, the LWMA and the SMMA focus on the changes in the intraday market trend. So, when you’re using EMA, SMMA, and LWMA all together, you are having both a short-term and long-term overview of the market trend.

MA Candles Two Colors Indicator Anatomy

When the candles are blue, consider the market trend as bullish and focus on buy opportunities only. For example, you encounter a bullish breakout while the candle is blue means the breakout is a valid setup for going long. Contrarily, when you’re looking for a selling opportunity, wait until the MA candles turn red. A series of same color candles offer a better confirmation of the market trend.

Also Read: Best Forex Brokers in South Africa 2021

MA Candles Two Colors Indicator: Buy Condition

MA Candles Two Colors Indicator Buy
  • The MA candles turn blue
  • The price moves higher from its current consolidation range
  • SL below the low of the recent blue candle
  • Take profit whenever the candle turns red

MA Candles Two Colors Indicator: Sell Condition

MA Candles Two Colors Indicator Sell
  • The MA candles turn into red color
  • The price breaks the low of its current consolidation range
  • SL above the high of the recent red candle
  • Take profit whenever the candle becomes blue

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I have been actively trading the financial markets since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

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