The trading Pattern Recognition Metatrader 4 indicator displays all kind of single candlestick trading patterns on the chart.
The list includes: Bearish Engulfing, Bullish Engulfing, Three Outside Down, Three Inside Down, Cloud Cover, Three Black Crows, Three Outside Up, Three Inside Up, Piercing Line, Three White Soldiers, Stars and the Harami.
Blue colored candlestick trading patterns are said to be bullish, red colored candlestick trading patterns are said to be bearish.
This is a 100% pure price action forex indicator.
In order to get more reliable trading signals from this indicator, use together with a trend following indicator.
For instance, the 50 SMA or 50 EMA would fit in this case.
Trade the signals from the candlestick indicator in the direction of the underlying trend as indicated by the trend following indicator.
Price above the 50 SMA or 50 EMA: look for bullish (blue color) candlestick patterns and avoid the bearish ones.
Price below the 50 SMA or 50 EMA: look for bearish (red color) candlestick patterns and avoid the bullish ones.
You can enable or disable candlestick patterns directly from the indicator’s input menu.
The USD/JPY M5 chart below displays the Trading Pattern Recognition forex indicator in action.
Basic Trading Signals
Signals from the Trading Pattern Recognition forex indicator are easy to interpret and goes as follows:
Buy Signal: Open a buy trade when a bullish candlestick appears on the activity chart.
Sell Signal: Open a sell trade when a bearish candlestick appears on the activity chart.
Trade Exit: Close the open trade when an opposite signal occurs, or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (Show Alert, Display Bearish Engulfing, Display Bullish Engulfing, Display Three Outside Down, Display Three Inside Down, Display Cloud Cover, Display Three Black Crows, Display Three Outside Up, Display Three Inside Up, Display Piercing Line, Display Three White Soldiers, Display Stars, Display Harami) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Price Action
Copy and paste the pattern-recognition.mq4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)