ColorBars Indicator For MT5
Table Of Contents:
- ColorBars Indicator For MT5
- Trading ideas with the ColorBars Indicator For MT5
- ColorBars Indicator For MT5 - Buy Entries
- ColorBars Indicator For MT5 - Sell Entries
- ColorBars Indicator For MT5 - Conclusion
The ColorBars Indicator For MT5 draws candles in different colors. The color depends on the volume information of that candle. If the volume of the current candle is bigger than the volume of the previous candle then the candle is drawn with green color otherwise it is drawn with red color.
The ColorBars Indicator For MT5 analyzes the trading volume and color the bars. Very few traders have a clear concept of the volume factor in the investment business. Most of the rookies in the Forex market thinks the market volume can’t be analyzed. Though precision can’t be achieved we can get relative data and speculate the volume traded by the retail traders.
It’s more like analyzing the volume of the stock market. It might sound crazy but if you do the in-depth analysis, you will know how volume analysis can improve your trading. When the buying volume is high, the ColorBars paint the candle a green color. On the contrary, when the selling volume is high, candlestick gets painted in the red color.
The color code is a great way to analyze important market metrics. It might be a tough task to focus on the indicator reading and the trade setup. No matter which indicator you use, you must rely on a professional edge. Without having a perfect edge, it will be a tough call to earn consistent profit. Let’s explore a bit to know more about the importance of the selection of trading methods.
Trading ideas with the ColorBars Indicator For MT5
In the short time frame traders usually get involved in the investment business without knowing about the important market details. Short time frame trading is designed for highly skilled traders. And the integration of the ColorBars to the short time frame trading method is a very risky task.
But if you learn to analyze the higher time frame data, it will be an easy task to boost your trading skills. You will learn the perfect way to manage the risk profile and this should provide you an easy path to earn more money. The trade filter process is also easy in such kind of trading method. You can use the ColorBars and filter out the risky setups.
Let’s see how we can find the perfect opportunity and ignore the risky setups with the ColorBars indicator.
ColorBars Indicator For MT5 - Buy Entries
The ColorBars indicator must be used systematically. If you ever look at the professional trader's approach, you will know the importance of organized actions at trading. Spot the important support zone so that you don’t have to be stress. A strong support zone is most likely to hold and create a strong bullish momentum.
Elite traders also rely on price action confirmation signals. The trade setups that are formed based on the Japanese candlestick pattern are must more reliable as they offer tight stop loss. Knowing about the different candlestick patterns might be a big challenge but if you do the math, soon you will learn to evaluate the position of the candlestick concerning the important market metrics.
Right after the setup is formed, look for the green outline in the candle. This outline will be drawn by the ColorBars indicator. If the bar is not colored in green, your setup is not that great. You should avoid taking the trades on such a trade setup and look for the next opportunity. Never rush at trading, the market will always give you decent profit taking the opportunity.
ColorBars Indicator For MT5 - Sell Entries
There are many ways to take a short trade. You can sell the asset at the resistance zone or wait for the support level to get weaken. If a weak support level is tested multiple times, the price should breach the level and create a new low. But opening short trade at the break of the support is a very advanced technique of taking the trades. Most of the investors fail to analyze the important zone.
The rookies should go with the resistance level trading method. They should take the short trade after the formation of the bearish PA pattern. And if the short trade is taken at the break of support, a strong bearish candle must be present at the support zone. In both cases, the outline of the candle will be marked by the red color.
The ColorBars indicator draws these outline based on the traded volume. Though they focus on a relative trading volume the accuracy of this indicator is pretty high and it can offer you decent profit potential. But be cautious about the high impact news. If the news data is not analyzed properly, the traders will not get accurate signals.
They will be losing money most of the time. However, by learning about the fundamental analysis, the investors can merge technical and fundamental data to get the best results. As a new investor, you can test and the proper use of the ColorBars in the demo environment. Once you get skilled, get back to the real trading account.
ColorBars Indicator For MT5 - Conclusion
The rookies are always looking for a professional trading approach. They are trying their best to earn a big amount of money. They often ignore the cardinal rules of money management just because they know the key function of ColorBars. ColorBars might have a very high win rate but it is nothing but a helping tool.
If you consider the filter as an important element at trading, soon you will lose hope in your trading method. You will get busy developing a complicated trading method and this should ruin your career. Never try to secure your financial freedom with the help of a trader filter tool. The main purpose of the ColorBars is to get better results from each trade.
Knowing the proper use of this tool can help you to eliminate many false signals. You get a relative idea about the volume traded in the global market. If things get messy or you feel confused about a certain trade and the readings of this indicator, avoid taking the trades. You have to feel confident with your trade signals and only then you can improve the execution process of each trade. Lastly, trust in your trading method and sync the ColorBars to the edge in a professional manner.