MACD Color Candles Indicator MT5
Platform: MT5 Type: Momentum Last update: June 18, 2025The MACD Color Candles Indicator for MT5 is responsible for displaying colorful candlesticks that reflect bullish and bearish momentum based on readings from the famous Moving Average Convergence Divergence indicator.
Thanks to received signals, traders get overview of the market momentum. There are often multiple consecutive candlesticks in the same direction, which can help capture significant price moves and generate profits.
Example chart:
How to understand signals provided by the macd color candles indicator for mt5?
I think the code applied here is obvious – green reflects upward momentum and red suggest a downward bias. This simple visual approach allows to quickly evaluate the current and past market trends.
As a rule of thumb, use the color candles to confirm trend direction before entering a trade.
For example, combining this indicator with support and resistance levels can help confirm entries or rejections when a right color appears. Let’s take this setup – if price breaks above resistance and green candles follow, it may validate a stronger breakout.
On the other hand, a transition from green to red (or vice versa) can signal fading momentum. This scenario is useful for exit signals or early reversal warnings.
Take a look at the EUR/AUD H4 chart. It shows price rejections from a descending trendline. After each rejection, a first red candle was a confirmed opportunity for a profitable short trade.
Indicator settings
In the settings tab, there are three customizable inputs.
- MACD fast period – this factor influences how fast responds to price fluctuactions.
- MACD slow period – it’s used to smooth out longer-term trends.
- Price to use – sets type to use in calculations (e.g., close, open, high, low, heiken ashi average).
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