The Candle Range Envelop Metatrader 5 forex indicator is a technical tool that shows both the length of the candle and average length for a specified time frame.
Two envelopes forming minimum and maximum values channels in the form of painted histograms.
- Green colored histograms are shown when the histogram size exceeds the upper channel envelop.
- Red colored histograms are on display when their size stay below the lower channel envelop.
- The gray colored histograms come on display when their size stay within the channel envelop.
The Candle Range Envelop indicator does not offer us a clear direction as to where price is heading but can serve as a filter when in use with trend indicators.
Download the “Candle_Range_Envelop.ex5” MT5 indicator
The EUR/GBP H1 chart below displays the Candle Range Envelop Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when a trend following indicator like a moving average shows a bullish trend and the Candle Range Envelop Metatrader 5 forex indicator puts up a green histogram.
Sell Signal: Go short when a trend following indicator like a moving average indicator reveals a bearish sentiment and the Candle Range Envelop Metatrader 5 forex indicator histogram is also filled green.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the Candle Range Envelop indicator pops up a red histogram.
Exit sell trade: Close all sell orders if while a bearish trend is running, the Candle Range Envelop indicator displays a red histogram.
Tips: The Candle Range Envelop indicator doesn’t define market trends, hence it should be deployed in conjunction with other trend indicators like moving averages, Bollinger Bands, etc.
Download the “Candle_Range_Envelop.ex5” Metatrader 5 indicator
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Range period, Signal period, Deviation multiplier, Percent top envelope, Percent bottom envelope, Envelop method, Price method), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: candle length
Copy and paste the Candle_Range_Envelop.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)