Welch Candlesticks
Info
The Welch Candlesticks is a Indicator for MetaTrader 4 that realthe basic candlesticks built into metatrader 4 have a fundamental flaw that can be detrimental to trading. They fail to display the ask line and do not record the ask price in the history, which can be further exacerbated if a broker sends averaged bid and ask data.
Usage
This tool is typically used for enhancing chart analysis and decision making.
Platform
This Indicator works exclusively on MetaTrader 4 (both build 600+ and newer versions).
Setup
Place the downloaded file in MQL4/Indicators folder via File ? Open Data Folder in MetaTrader 4.
How to Install and Use Welch Candlesticks
1. Installation: Place your file in the MQL/Indicators folder via "Open Data Folder" and restart your terminal.
2. Loading: Find the indicator in the Navigator, drag it onto your chart, and configure the input parameters in the popup window.
3. Customization: Press Ctrl+I to open the indicator list, select your tool, and click "Properties" to change colors, levels, or visual styles.
4. Updating: Replace the old file in the Indicators folder with the new version and restart the platform to apply changes.
Frequently Asked Questions
Q: Why is my indicator not showing? A: Verify the file is in the MQL/Indicators folder, or try right-clicking the "Indicators" tree in the Navigator and clicking "Refresh."
Q: Do custom indicators slow down the platform? A: Too many complex indicators can impact performance; remove unused ones via the "Indicator List" (Ctrl+I).
Q: Can I use MT4 indicators on MT5? A: No, MQL4 and MQL5 are distinct languages; ensure the indicator is compiled specifically for your platform version.
What this tool does
RealThe basic candlesticks built into MetaTrader 4 have a fundamental flaw that can be detrimental to trading.
Typical Use Case
This Indicator excels in automated trading and technical analysis on MetaTrader 4.
Compatible Platform & Setup
This Indicator works on MetaTrader 4. Place the file in the MQL4/Indicators folder and restart the terminal.
Description & Settings
Related: Welch Bollinger Band Width - another powerful indicator for MetaTrader 4 traders.
RealThe basic candlesticks built into MetaTrader 4 have a fundamental flaw that can be detrimental to trading. They fail to display the ask line and do not record the ask price in the history, which can be further exacerbated if a broker sends averaged bid and ask data.
Also recommended: Candlesticks BW Indicator - similar indicator with strong performance on MetaTrader 4.
MetaTrader 4 calculates candlesticks based on bid data, and to view the current ask price, one must enable the 'show ask line' option in chart properties. This ask price is crucial for setting stop losses accurately.
To visualize this, open a 1-minute chart, go to chart properties, change the style to candlesticks, and enable 'show ask lines'. You'll notice a red line that doesn't impact candlestick formation unless a trade is executed at the ask price.
This ask price is essential for determining stop losses. If it consistently remains above the historical price, you can more precisely place your stop loss for new trades.
Unfortunately, there's no way to rectify this issue for past data without creating offline charts that include the ask price, as the historical data on charts only saves the bid.
However, there are two ways to address this on live charts. The first method is as described above, and the second involves using the WelchCandlesticks_v2 indicator.
When added to a chart, this indicator constructs new candlesticks with spread data incorporated into the wicks, affecting only the high and open/close/low. This innovation helps visually identify when the spread rises and potentially stops you out of a trade.
Below are two charts: one with standard candlesticks and another with the Welch candlesticks overlaid. The lime lines indicate where the spread exceeds the candlestick high.
These charts are from AUDJPY in 2026.
Another chart illustrates a significant spread spike before a price drop.
The author has been using this method for a few years with positive results. It provides a slight edge, not an instant money-maker, but helps visually identify broker spread changes, allowing for more precise stop placement and avoiding premature trade exits during price challenges.
You may also like: basing candlesticks mt4 - excellent alternative for indicator users on MetaTrader 4.
Source Code
#property copyright "robotfx"
#property link "https://robotfx.org"
#property indicator_chart_window
#property indicator_buffers 8
#property indicator_color1 tomato
#property indicator_color2 white
#property indicator_color3 tomato
#property indicator_color4 white
#property indicator_color5 lime
#property indicator_color6 lime.......
⚠ Limitations & Risk Warning
- This tool is provided for educational and testing purposes only.
- Past performance does not guarantee future results.
- Trading involves substantial risk of loss. Use on a demo account first.
- Results may vary depending on market conditions, broker, and settings.
- We recommend thorough backtesting and forward testing before using with real funds.