CaudateCandle Indicator For MT5
Table Of Contents:
- CaudateCandle Indicator For MT5
- Trading ideas with the CaudateCandle Indicator For MT5
- CaudateCandle Indicator For MT5 - Buy Entries
- CaudateCandle Indicator For MT5 - Sell Entries
- CaudateCandle Indicator For MT5 - Conclusion
The CaudateCandle Indicator For MT5 marks certain candles with colors. The indicator searches the candelstick patterns hammer and inverted hammer. If the indicator found such a pattern then it looks at the caudate of the candle. If it matches the defined criteria then the candle gets colored.
The CaudateCandle Indicator For MT5 is extremely popular among the professional price action traders. This is a kind indicator which has the potential to highlight the most important candlestick patterns. Upon installation of the CaudateCandle indicator, you will be noticing the hammer and the inverted hammer pattern.
The hammer pattern candlestick will be colored in blue and the inverted hammer will be colored in red. If you closely notice the chart, you will also find other two-color prominent candles. The light blue color candles show the bullish candle and the light pink color highlights the bearish candle. By using these colored candles, the novice price action traders can easily find the potential trade setups with an extreme level of accuracy.
But never consider price action trading signals as a complete trading system. You need to know about support and resistance. For instance, a bullish hammer formed in the middle of nowhere doesn’t have any significance in the market. But if you spot the bullish hammer at the important support zone, you can expect to find a bullish rally. Similarly, if you spot a light pink color bearish candle at the major resistance, there is nothing wrong to expect a strong drop in the price.
Trading ideas with the CaudateCandle Indicator For MT5
The success of the traders is greatly dependent on the trader's skills and trading methods. You might have a well-structured trading system and professional trade filter tools like the CaudateCandle indicator. But if you fail to respond to the trade setups in a disciplined manner, you will not be able to earn money.
The CaudateCandle indicator is just a helping tool that will reinforce your trading ideas. You need an existing trading method that will determine the potential buying and selling signal. And this can be done only if the trading method is capable of finding support and resistance at significant levels. Using the candlestick patterns from the CaudateCandle indicator in the minor support and resistance is not going to work.
So, people who are looking to sync the CaudateCandle indicator to a short time frame trading method might not get the desired results unless it has a strong sequence to determine the support and resistance. Failing to choose the right trading method will force you to take the wrong trades with the help of the CaudateCandle indicator. You need to be careful with your trading system and only then the CaudateCandle can work like charm.
CaudateCandle Indicator For MT5 - Buy Entries
Let’s say, you have mastered a professional trading method. With your professional trading system, you need to determine the perfect support zone. If the support level is strong, the price is most likely to react and form a nice bullish price action signal. Forget about the CaudateCandle indicator and focus on your trading method.
Try to locate the long trade setup at the important support zone following the rule defined by your trading method. Once you have the right trade setup, you need to move to the CaudateCandle indicator. If the trade setup is valid, you will find a blue color candle forming a hammer or a light blue candle showing a reliable bullish candlestick pattern.
It might seem confusing but always remember, blue and light blue color candles represent a strong bullish rally. Unless the trade setup has such candles, you don’t have a powerful long trade signal. Ignore the trade and wait for the next possible setup. However, if you get the confirmation from the CaudateCandle indicator, take a 2% risk in that trade and open the long trade with confidence.
CaudateCandle Indicator For MT5 - Sell Entries
The professional short term sellers use the most powerful candlestick pattern at the resistance level. Luckily the CaudateCandle indicator is capable of highlighting the important selling patterns also. The potential bearish price action candlestick patterns are marked with the light pink and red color candles.
But these candles should be analyzed after finding the desired trade setups at the important resistance levels only. If you fail to determine the resistance level with high accuracy, the trade setups are not going to work. Let’s say, you have assessed the resistance with precision. Now have a look at the CaudateCandle indicator. You should notice a red or light pink color candle right at the resistance level. This colored candle tells us the bearish price action signal is present at the trade setup zone.
Analyze the take profit and SL level so that you can find the RR ratio for the trade setup. If you feel satisfied with the trade setup and the RR ratio, analyze the risk factor. The risk factor should not be more than 2% of the balance. If it exceeds this level, you will be in great trouble after losing a few trades. Always limit your risk no matter how well you use the CaudateCandle indicator.
CaudateCandle Indicator For MT5 - Conclusion
The professional traders use the CaudateCandle indicator just a filter tool. But this filter is not like your regular filter. It filters your trade by analyzing the important price action patterns. Those who have strong skills about the price action candlestick patterns will fall in love with this indicator within a short time.
The new traders can master the basics of the price action trading strategy with the help of this tool. Though the CaudateCandle indicator is a premium tool to find quality trades, you need to be careful about the major news. Without learning to take the trades during the high impact news, you should never try to take the trades on the major economic announcement. Volatility is a great issue when it comes to conservative trading methods. The price of the trading instrument tends to get extremely wild right after the key news which eventually creates false spikes. And these spikes are another key source for the creation of the reliable candlestick pattern.
So, instead of taking the trades before the news, analyze the released data and merge your technical analysis. Soon you will be able to come to a conclusion and find a reliable signal. But still, you should not trade during the news unless you have strong skills in technical and fundamental analysis.