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.
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.
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)