MT4 candle formations used as a free trend indicator





Studying price action as represented by candles can show very interesting and fascinating market behavior. Especially when combined with important times such as market openings, announcements and market closures.

MT4 candle formations used as a free trend indicator

Experienced traders know specific behavior as bull and bear traps and they can produce great trading opportunities because they mostly happen just before nice 30 to 80 pip moves in the market. Some day traders trade these moves exclusively only because of the great return on risk.


bear and bulltraps

If you look at this 30 min chart of the USDCHF you will see that just before big moves that happen at Major Market openings, announcements and market closures there is a movement in the opposite direction of the breakout trend. It is almost as if someone has prior knowledge of the way the break will go tries to entice traders to trade in the opposite way. Alternatively they are transacting before the break at really good prices creating more profit. These are called traps – bull or bear traps depending on the direction of the break and are very trad-able by experienced or traders in the know.

An example before an announcement on the 1 minute chart



A slower example at the time of a major financial market opening



Why not back trade the phenomenon on historical charts paying particular attention to announcement, major financial market openings and closures. See how many Bull and Bear traps you can find using the following indicators.

  • Your watch – to find the time of day this happens
  • The 1 minute candle chart

Please let us know what your finding are in the Forum.

Here is a recent Double in a Day trade using this technique.


The GBPUSD 15 min chart is used:









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