In this article we are going to explain a modified indicator for Metatrader 4, which measures the balance of forces between buyers and sellers for each time frame, from M1 to D1, in the form of red and green histograms. This indicator is called Strength Candles, and for each time frame it shows the ratio between buyers and sellers in a range from 0 to 100%. It can be used primarily to determine the strength of the current trend.
The Strength Candles show the total balance between the buying and selling forces in percentage terms. This strength indicator does not use typical indicators such as RSI or moving averages, therefore the information is provided without any delay.
It is not an indicator that provides entry and exit signals like others. Its function is simply to inform about the balance between the forces in the market for different time frames.
Therefore, the signals from the Strength Candles indicator cannot be used to enter the market, but their integration into any trend-following strategy can be helpful in determining the current trend. For example, in a bullish movement, if the indicator shows greater strength from the buyers in most time frames, this indicates a stronger uptrend, while in a downtrend, if the Strength Candles indicate greater strength from the sellers, then we are facing a stronger downtrend.
General characteristics of the Strength Candles indicator
- Currency pairs: It can be used in any currency pair, but it is recommended to use it in the main pairs such as EUR/USD, GBP /USD, USD/CHF or USD/ JPY. It can also be tested in other markets, such as commodities or indices for example.
- Time frame: This indicator can be used in all time frames, from M1 to D1.
- Trading time: All day.
- Trading platform: The indicator was developed exclusively for Metatrader 4.
- Recommended broker: It can be used in any broker that offers the Metatrader 4 platform, such as HotForex for example.
In the indicator settings, it is possible to change its general appearance.
Strength Candles indicator example
Download and Installation of Strength Candles
You can download the indicator together with the template through the following link:
The indicator consists of the following files:
- Strength_candles.ex4 (indicator)
- Strength Candles.tpl (system template)
The Strength_candles.ex4 file should be placed in the /MQL4/Indicators folder of the Metatrader 4 installation on the computer. For its part, the Strength Candles.tpl file is placed in the /templates folder of the Metatrader 4 installation. To activate the indicator, the platform must be restarted.
If you have any questions please write them in the comments section of this article.