MT4 Candlestick Patterns Indicator (Scanner)

Candlestick Patterns Indicator is used to identify common candlestick patterns (formations) based on Japanese candles chart. The candlestick chart is the most popular way of representing a price of an asset. During the time, traders have identified some common formations of candles that signal about trend continuation and reversals, support and resistance levels, imbalances between bulls and bears. There are a lot of candlestick patterns known and used in trading and we have prepared an indicator that gathers them all together in one tool and allows you to visualize these patterns on the chart.

MT4 Candlestick Patterns Indicator

MT4 Candlestick Patterns Indicator allows you to visualize on the chart the most common candlestick patterns and trade in the direction that these patterns tend to predict. Some patterns identify the current trend reversal, some may confirm the trend continuation, while others may signal about support and resistance levels. The indicator identifies the following common known candlestick patterns:

  • Morning and Evening Star
  • Piercing
  • Dark Cloud
  • Three White Soldiers
  • Three Black Crows
  • Hammer
  • Shooting Star
  • Bullish and Bearish Engulfing
  • Rising and Falling Three
  • Inside Up and Inside Down
  • Bullish and Bearish Marubozu
  • Bullish and Bearish Harami

 

 

The indicator is designed in a form of a scanner that allows you to see the most recent pattern formed on a particular instrument/time frame chart. Such approach provides the ability to see the market in a glance identifying the most potential pairs and timeframes to trade.

 

How to trade using MT4 Candlestick Patterns Indicator?

Each pattern identified by the indicator is followed by a signal entry arrow that depicts the direction the pattern predicts. The candlestick patterns trading concept suggests to open a trade in the predicted direction aiming for trend reversal or continuation (depending on the current market situation). Please, do remeber to limit your risks within each trade.

 

How to interpret MT4 Candlestick Patterns Indicator?

Each pattern consists of different amount of candles: there are simple 1-candle patterns, more complex 2- and 3-candle patterns, as well as even 5-candle patterns such as “Rising Three” or “Falling Three” patterns. The indicator highlights each pattern with a frame that is drawn around the group of candles that form the pattern. It also provides a direction of a potential trade that this particular pattern predicts. Next to the signal arrow and the frame, the name of the related pattern is printed.

 

How to read MT4 Candlestick Patterns Indicator dashboard?

The dashboard allows you to see the patterns formed in the market on different instruments and timeframes in a glance.

Each currency pair/timeframe cell contains the name of the most recent pattern identified on the related chart and the amount of bars ago this pattern has formed. The color of the box specifies whether the pattern was bullish or bearish – the more bars ago the pattern was identified, the more pale the color of the cell will be.  This allows you to select the most relevant chart to trade.

Clicking on the related cell will change your chart to the instrument and timeframe of the clicked cell.

 

MT4 Candlestick Patterns Indicator input parameters

The indicator input parameters are pretty straightforward and self-explanatory. It allows you to select the currency pairs and timeframes that you want to monitor. Parameter “max_bars” limits the amount of calculations in order to speed up the indicator in case you do not need it to identify the patterns too far in the past.

The indicator allows you to select which candlestick patterns to visualize on the chart in case there are some patterns that you do not want to follow or in case there are only specific patterns, in which you are interested.

 

Custom Programming

mt4 custom programming
We can upgrade the presented indicator to suit your needs – add new functions, change the algorithm for calculating signals, or combine it with your other indicator, turning it into a single powerful tool for your trading strategy.

We can also turn the indicator into an Expert Advisor (trading robot) with an extended set of custom functions (stop loss, take profit, trailing stop, risk management parameters, trading time limit, and others).

Request a free consultation from our team of professional programmers and find out the cost and timing of your project development.

Disclaimer 

Nordman Algorithms is not liable for any risk that you face using the software. Please, use the software on your own responsibility. The software is coded in accordance with a common known concept and Nordman Algorithms does not guarantee accuracy or trading performance of the software signals.

See other indicators on a single subscription
MT4 Harmonic Patterns Indicator (Scanner)
MT4 News Indicator (Dashboard)
MT4 Support & Resistance Zones Indicator (Dashboard)