Candle Time and Spread Indicator Guideline

A candle timer indicator for MT4 can conduct rapidly the remaining candle time and the current spread on trading charts. To explain, this is so valuable for short-term Forex and crypto trading systems where the decision-making process is made on the candle closing timing. Consequently, this MT5 candle time end and spread indicator for MetaTrader is a practical analytic tool for time management. That is why it is famous among forex traders and widely implicated in their FX trading systems. Today, our subject indicator is the candle time and spread, based on which we will develop trading opportunities.

Candle Time End and Spread Indicator

What is candle timer and spread indicator ?

As its appellation stipulates, the candle timer end and spread tool outlines:

  • The remaining time until the closing of the most recent candlestick.
  • The ask-bid spread for the forex pair or any other trading instrument.

This candle timer tool relies on two fundamental pieces of information:

  1. The candle ending time information is helpful mainly for price movement traders. Because they need the candle closing to confirm candle patterns. To explain, the formation is a trading opportunity for this kind of trader.
  2. The spread information is more helpful for scalpers who trade short timeframes like M1, M5, and M15. Because it is an embedded trading cost. To clarify, the opened order should cover this charge to be profitable. In short, Forex traders incur spreads when they initiate any position.

How to trade with candle timer and spread ?

We use the candle time end and spread indicator for two reasons. On the one hand, scalpers make faster decisions than swing Forex traders. Thus they are more exposed to stress. In fact, they initiate hundreds of orders on a daily basis. Moreover, they frequently check trades all day long. However, swing traders open fewer orders and check less their trades. Consequently, scalpers are always looking for technical indicators that enable them to manage pressure and boost their concentration.

On the other hand, Forex traders should understand that crucial issue. Even if you are trading in the price direction and making pips, your position could be very expensive. In fact, every trade has an additional cost that most Forex traders ignore. It is the spread!

Only one indicator solves those two problems. It is the candle time end and spread indicator. To explain, this candle timer indicator assists your strategy by timing your trades correctly and surveying the spread continuously.

How does the candle time and spread indicator work ?

The indicator works as a candle timer and a forex spread scanner in the MetaTrader terminal.

  • Candle Timer indicator

From one part, the indicator works as a candle timer for MT4. To explain, the candle time and spread indicator in MT4 charts is a candle timer indicator that shows the time difference between the current and the next candle. In fact, it Indicates when the recent candle will close. Alternatively, it indicates when the next candle will open. To explain, this timing is exhibited at the MT4 chart’s bottom right.
Also, this time difference is entitled “Next bar in”. And it follows the simple calculation:

  • Time difference = “Next bar in” = Open Time of the Next Candle – Current Time
  • Forex spread Indicator

From another part, the indicator works as a forex spread scanner. To clarify, the candle time and spread indicator in MT5 charts shows also the spread. Thus, in addition to time differences, this MT5 indicator scans and computes price differences. To clarify, this spread is shown at the chart’s bottom right. Also, it is labeled “Spread”.
The Ask-Bid spread stands for the difference between the broker’s Ask & Bid prices. As its name designates, we get the spread following the simple calculation:

  • Ask-Bid Spread = Ask Price – Bid Price

How to analyze spread using candle timer indicator ?

Before analyzing the spread with the MT5 candle timer indicator, traders should deeply understand the Ask-Bid spread. The Ask is the offer price. To clarify, it’s the lowest price that a seller is ready to receive for a trading instrument. Contrarily, the bid is the demand price. To explain, it’s the highest price that a buyer is ready to spend on a financial instrument.
Note that the ask is always beyond the bid. Also, the difference between those two prices is called the spread. Thus, every trader incurs the spread as an indirect cost. In addition, this embedded charge is variable over time and across trading instruments.

A high spread indicates a big difference between ask and bid prices. Generally, this is the case for currency pairs in emerging markets. Usually, they have a higher spread than major forex pairs. High spreads may indicate either high volatility or low liquidity in the FX market. Ask-Bid Spreads can broaden considerably due to a change in fundamental and economic variables. That is why technical analysts prefer to exchange during low Ask-Bid spreads.

Impact of the spread on the profitability of the trade

  • Long positions

In this case, traders overlook recognizing a bullish formation such as a bullish acceleration. Then, they judge whether the take-profit target will cover the spread cost or not. If yes, they initiate a long position at the close of the current pattern candle. Furthermore, they set the stop-loss level below this entry candle.

  • Short positions

In this situation, chartists tend to determine a bearish formation such as a bearish accelerating movement. Then, they evaluate whether the take-profit target will cover the spread cost or not. If yes, they open a short order at the close of the current candle. Also, they set the stop-loss level above this entry candle.

Note that the take-profit target can be based on a reasonable risk and compensation proportion or near the last swing level. Let us illustrate this in the next section through an example in order to learn how to use this candle timer indicator for MT4.

How to use the candle time and spread indicator ?

Let us take the example of the EURCAD currency pair. On the one hand, we have 48 points spread, thus 4.8 pips. On the other hand, we have an inverted hammer formation that is about to close. Remind that this is a reversal pattern that occurs at the end of a downside move.

Consequently, we do the following:

  • Initiate a buy order at the close price of the current candle at 1.44845
  • Set a stop-loss order below the current candle at 1.44830 
  • Set a take-profit target at the last swing point at 1.45120

The projected profit of 275 points would cover the spread cost of 48 points.

Now let us see the market realizations of the forex pair. A bullish trend reversal just occurred. Consequently, it was a successful candle timer and spread buying strategy with: 

  • Theoric profit = 1.45120 – 1.44845 = 275 points = 27.5 pips
  • Real profit = Theoric profit – Spread = 27.5 – 4.8 = 22.7 pips

In conclusion, the theoric profit includes a real profit and an embedded spread.

candle timer and spread indicator

Download Candle time and spread indicator  for MT4

The Candle Time end and Spread indicator for MT4 is a forex trading system for further direction confirmation signals. In fact, it conducts you the remaining time in the present candle along with the spread. Hence, this MT4 indicator makes you prepared for the next candlestick opening, liquidity, and volatility. In short, traders consider this candle timer information to forecast trade profitability in the MetaTrader 4 platform.

Candle Time and Spread Indicator MT4

Does MetaTrader show the spread ?

MetaTrader platforms can display the currency spread on the market watch. But, to activate this option you should follow these steps. First, right-click on the market watch anywhere. then, activate the spread option. Thus, the spread will be displayed next to the asking price.

Note that MetaTrader platforms are quoting the spread in points. Thus, in order to get the pip spread, you have to divide the points spread by 20. As an example, 20 points spread are equivalent to 2 pip spread. An easier way to get the spread is to free download the candle time and spread indicator for MT4 platforms.

Download Candle time and spread indicator for MT5

Candle Time and spread indicator for  MetaTrader 5  is a forex trading system to trade entry or exit levels. Thus, for scheduling entries and exits as trading opportunities. Timing is a key indication to seize scalping opportunities. That is why scalpers use this informative candle timer to understand when the current candle will close and the next one will start on their MT5 chart.

The Candle time end and spread indicator for MT5 immediately provides this information. To explain, this technical indicator checks:

  • Bid price: The trader sells at this demand price
  • Ask price: The trader buys at this offer price
  • Ask-Bid Spread: the difference between Ask and Bid prices
  • Elapsed Time: CountUp time
  • Remaining Time: CountDown time
Candle Time and Spread Indicator MT5

Does MetaTrader show the remaining time in the current candle ?

The remaining time in the current candle may be very helpful in many ways. MetaTrader platforms display the current time on the market watch. However, they do not display the remaining time since the candle started. The candle timer and spread indicator have the ability to display the remaining candle time on your MT5 chart.

candle timer indicator

Conclusion

The Candle time and spread MT5 indicator is very proper for scalping traders. From one part, this enables them to comprehend if their potential profit target is able to cover the spread cost before initiating a new order. In fact, the technical tool allows them to continuously monitor the spread and its evolution, which reflects market conditions as volatility and liquidity. On the other hand, price action traders should be notified when the next candle will start on their platform. Because this allows them to monitor renowned chart and candle formations before the opening of the next candlestick. This assists them in timing their next positions efficiently. In conclusion, the candle time end and spread indicator is an interesting time management tool for forex traders in their MT4 charts.