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.
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.
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.
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MA Candles Two Colors Indicator: Buy Condition
- 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
- 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