Candles Ratio Indicator
The Candlestick Ratio Indicator for MT5 builds an oscillator based on the ratio of bullish and bearish candlesticks on the current forex chart to determine the best entry point.
Description
The Candlestick Ratio Indicator for MT5 displays the oscillator according to the ratio of bullish and bearish candles over a specific period. Increasing or decreasing oscillator values give the Forex trader an idea of the dominant players in the market. Thus, oscillator values and levels, including support and resistance, help a forex trader in technical analysis or formulation of trading strategies.
The indicator is a simple oscillator that is easy to understand for both new and experienced Forex traders.
Moreover, the indicator works on all intraday price charts and charts of higher time frames. The best strategy is to use the indicator in conjunction with other technical indicators.
Candles Ratio Indicator For MT5 Trade Setup
The indicator displays the green oscillator line in a separate indicator window. If the oscillator values are increasing, it means that the market is currently dominated by buyers. However, a falling oscillator value indicates that sellers are currently strong in the market. Moreover, traders can use support and resistance on the oscillator to identify potential price reversals.
The basic trading strategy is to determine the current bullish or bearish condition using the ratio of market participants. Traders should consider entering the market with a buy trade if the oscillator turns higher. A stop loss below the previous swing low should be effective in protecting this position.
Likewise, if the oscillator line begins to turn around and move down, this indicates the presence of an increased number of bears in the market. Therefore, traders should open a sell position with a stop loss above the previous swing high. Traders should look for any reversal in the oscillator to lock in profits.
Conclusion
Thus, the Candlestick Ratio Indicator for MT5 is an oscillator that helps the forex trader to determine the dominance of bulls or bears in the market.