Candles Color Indicator for MT5

January 18, 2021

1799

Introduction to the Candles Color Indicator

Market timing is an important aspect in a trading strategy. This includes predetermining the day of the week and time of the day that you would trade. This is because certain days can produce better trades, and certain times of the day can present more opportunities. The Candles Color indicator is an indicator that can give traders a visual indication for this based on their trading strategies.

What is the Candles Color Indicator?

The Candles Color indicator is exactly just as its name suggests. It is a custom technical indicator which changes the color of the candles based on a preset time.

How the Candles Color Indicator Works?

This indicator changes the color of the candles being plot on the price chart whenever a candle is formed within the preset timeframe. The color of the candles is still based on whether the candle is bullish or bearish. However, the colors used would change when the candles are formed within the preset time on the indicator.

This indicator is preset to plot the usual green candles for bullish candles and red candles for bearish candles. However, the color of the candles would change to powder blue and bisque whenever a candle forms within the preset time.

The colors used, as well as the timing of the color changes can be modified under the Inputs tab of the indicator Settings. Traders can modify variables such as Starting Hour of Day, Starting Minute of Hour, End of Day, End Hour of Day, as well as the color of the bars.

How to Use the Candles Color Indicator for MT5

This indicator can have various applications depending on a trader’s strategy, especially when it includes timing a trade based on market time. Some traders can opt to trade only during hours when major markets are open, such as the Japan, London, and New York markets. Some traders would trade only a couple of hours at the open of the market. Some traders also mark certain times of a day as a range. Others would opt trade only on days where they know that volume does not drop off and would avoid trading during low volume days, such as Friday.

Traders who have strategies based on market timing can opt to mark the times of the day when they would not trade by using this indicator to change the color of those candles.

Buy Trade Setup

When to Enter?

Change the timing of the color changes based on your strategy. Open a buy trade setup only when the candles change to green and red. Set the stop loss on the support below the entry candle.

When to Exit?

Close the trade based on your trade setup exit strategy.

Sell Trade Setup

When to Enter?

Change the timing of the color changes based on your strategy. Open a sell trade setup only when the candles change to green and red. Set the stop loss on the resistance above the entry candle.

When to Exit?

Close the trade based on your trade setup exit strategy.

Conclusion

This indicator is merely an aesthetic type of indicator. Traders can time their trading sessions using other means. This indicator also requires traders to convert the Server Time used by the broker to the time of the local market they will be trading. However, traders who prefer such modifications on their charts in order to help them time their trading strategies can also use this type of indicator.