Forex Tips: Master Candle Indicator (freebie)

Updated on June, 12th, 2015

Master candles do not work anymore

I am sorry to disappoint you, but master candles do not really work anymore. This post was written in early 2010, back then, master candles were awesome to trade…

… What changed?

Well, over the last five years, volatility in Forex has crashed. When volatility was high, break out trading was extremely profitable. If you traded a master candle break, price would easily hit your targets. These days, price tends to stall and reverse before hitting master candle targets. Even with tighter targets, master candles just aren’t profitable.

Check out this chart tracking average daily ranges for AUD/USD.

Average daily range per year for AUD/USD

You can see that average daily ranges have fallen. This means that price is moving much less on average, making master candles too risky to trade.

Other price action strategies

Don’t worry though, I have got you covered. These days, I concentrate on trading highly accurate price action based reversals. You can check out my free price action strategy, for a break down of my trading strategy.

Reversal trading is the most reliable, and most consistent way to trade Forex price action. Check out this trade that I took this week.

Description of a reversal trade taken using price action

Of course, not every trade works out this well. However, this strategy has a high win rate, and has been working consistently since 2007.

How to learn price action

If you want to check out my free strategy in more detail, I often host webinars to share my strategy and answer questions. Here are some of my latest webinars.

Hopefully you can adjust to Forex without master candles!

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22 thoughts on “Forex Tips: Master Candle Indicator (freebie)
  1. Here is a Master Candle indicator for GFT that I posted on the forums a few months ago. Just cut and paste the code into Chart Studio and install it. I didn’t write it so unfortunately I can not provide any support.

  2. Nice one Stryker43!

    I hadn’t realised that you posted that link so I grabbed the code from the GFT forums, compiled into a few files and archived with a readme file for install instructions.

  3. Thank you very much for the Master Candle Indicator. It truly is a handy tool, and with the alarm, makes spotting the trade setup a breeze. I place it on every one of my charts. I’ve already banked some serious pips! Don’t forget to change the settings to match your trading style. I always use the end of the wicks as my Master Candle high/low (you can ignore the wicks). Depending on the pair I’m trading or the chart time frame, I also change the number of internal candles used to trigger the indicator. I usually have the indicator form the MC after 4 internal candles close, but have also found a price action setup that works best after only 1 internal candle forms. Experiment with it. Thanks again!

  4. Thanks to both NickB, Pippery Slipples & Stryker43 for your input on this post. Great tool! Looking back at my charts a few hours; just missed some great trades – looking forward to getting some of these in the future!

    Thanks again!

    Instructions were great; add on to last step.
    Right click on chart (in Dealbook 360). Click on Add Studies. Select “Candles” or “Master Candles”.
    >>> Wasn’t sure how to do this, but figured it out… Hopefully this extra bit will help other Noobs too :)

  5. Nick no need to include the “(freebie)” in your headline. If people don’t know by now that you don’t charge for the information then they’ve been under a rock.

    Appreciate the info. & thought process. Hands down people should read the NickB e-books as they are the basics and building blocks for technical traders. Just like a house needs its foundation to be able to hold its walls, the same is true for the basics in trading forex.

  6. Thankyou Nick for the master candle indicator and thankyou for all the work you do around the site for the benefit of others The indicator sounds like a great tool but me being not very technical can’t figure out how to apply it to the MT4 charts. Any help would be appreciated.

  7. I can’t get the GFT Master Candle indicator to display correctly. I tried the MC indicator for MT4 and loved it, but I cannot get anything meaningful from the GFT one. I have done the F7 thing and saved it in chartstudio, the indicator appears in GFT, but it comes up on a separate chart window with no candles – Can anyone help please?