Free

The Candles Ratio V1 Indicator for MT4 is a simple yet powerful oscillator designed to analyze the ratio between bullish and bearish candles over a specific period. By tracking this ratio, traders can quickly identify which market participants—buyers or sellers—are currently dominant, providing insight into potential trend continuation or reversal.

This makes it an essential tool for technical analysis, helping both new and advanced forex traders to formulate smarter trading strategies.

How the Candles Ratio V1 Indicator Works

The indicator plots a green oscillator line in a separate window beneath the price chart. Its behavior indicates market sentiment:

Rising Oscillator → Buyers dominate, bullish market pressure
Falling Oscillator → Sellers dominate, bearish market pressure

Traders can also draw Support And Resistance levels on the oscillator to identify potential price reversals or areas of consolidation.

Trading Strategy and Setup

The Candles Ratio V1 Indicator is best used in conjunction with other technical indicators or Price Action confirmation.

Buy Setup

Oscillator reverses upward from a support level
Indicates increasing bullish dominance
Enter buy trades with stop-loss placed below the previous swing low

Sell Setup

Oscillator reverses downward from a resistance level
Indicates rising bearish pressure
Enter sell trades with stop-loss placed above the previous swing high

Profit Booking

Monitor oscillator for reversal signals
Book profits when the dominance shifts or momentum weakens

Key Features

Oscillator based on the ratio of bullish vs. bearish candles
Easy to read and interpret
Works on all timeframes, from intraday to long-term charts
Helps identify market dominance and potential reversals
Suitable for beginner and advanced forex traders

Benefits for Traders

Provides clear insight into market sentiment
Helps anticipate trend reversals and continuation
Supports stop-loss and risk management strategies
Complements other technical indicators for more robust trading setups

Conclusion

The Candles Ratio V1 Indicator for MT4 is a straightforward yet effective tool for understanding bullish or bearish dominance in the market. By tracking the ratio of bullish to bearish candles, traders can make informed decisions, identify trend shifts early, and improve overall trading performance.