FxNews—This article will meticulously review and present the Basic Candlestick Patterns indicator for the MetaTrader 5 platform. The candlestick indicator is essential for every trader who utilizes price action as part or whole of their trading strategy.
The Basic Candlestick Patterns indicator assists traders and investors in understanding market sentiment, potential price movement, and market reversal opportunities. This strategy is suitable for Swing traders.
Download Candlestick Patterns Indicator – MT5
Mr. Mehran Sepah Mansour developed the Basic Candlestick patterns indicator. He offers this technical analysis tool for free, which can be downloaded directly from the MQL website or my Google Drive, linked below.
Automatic Candlestick Patterns Recognition
The candlestick Patterns indicator MT5 scans the price chart automatically to find the basic and advanced candlestick patterns.
Once the indicator finds the patterns, it highlights them on the price chart with different colors depending on the type of candlesticks. The candlestick pattern MT5 indicator also writes the name of the candlesticks below it for more clarity.
How to use Alerts with Automatic Candlestick Indicator
Speed in making an informed decision is key to forex analysis, and this automatic candlestick finder implements necessary features to ensure traders are fully aware of the slightest change in the candlestick patterns.
The automatic candlestick patterns indicator features pop-ups, push notifications, and email alerts, so traders can receive updates even when they are away from their desks or the MT5 platform is minimized on their screens. All settings can be modified through the indicator’s input menu.
Highlight Key Candlesticks for Quicker Trading
The basic candlestick pattern indicator is equipped with highlighting features. Important candlestick patterns are highlighted on the price chart so traders can spot them quickly. Additionally, traders can modify the colors according to their taste.
Furthermore, if the chart looks crowded, the number of bars in the indicator’s calculation could be reduced. By default, the number of bars is 500, but reducing it to a number lower than 500 will only show the recent candlestick patterns on the price chart.
It is important to fiddle with the indicator’s settings to adjust it according to your taste and strategy. Having an eye-catching chart can make the forex trading experience more delightful.
The Basic Candlestick Pattern Indicator Panel
This technical indicator features a panel that appears on the screen. The panel can be positioned on the price chart’s right or left side. Unfortunately, the panel can take up a large portion of the screen, making part of it invisible, and it can’t be hidden.
Additionally, the indicator’s input setting allows you to adjust and modify the font, font color, and size of the font on the panel and the text on the chart.
The Automatic Candlestick Pattern Signals
The indicators scan the price for ten types of candlestick patterns in two categories, the bullish category and the bearish candlestick patterns category:
- Bullish Candlesticks Patterns: Hammer, Inverted Hammer, Bullish Engulfing, Morning Star, 3 White Soldiers
- Bearish Candlestick Patterns: Hanging Man, Shooting Star, Bearish Engulfing, Evening Star, 3 Black Crows.
Automatic Candlestick Finder Trading Samples
In this piece, I am presenting you, my dear readers, with offline and live trading examples of the basic candlestick patterns indicator using the tool on the price chart. This will teach you how to read the signals.
Please note that the rules for reading candlesticks and their role are the same for any trading security. However, candlestick patterns are more efficient on higher time frames, such as 4-hour and daily.
Trade Sample 1: Bullish Hammer Ignites USD/JPY Rally at 146
The USD/JPY 4-hour chart below shows the indicator highlighting a bullish hammer candlestick pattern at 146.0 resistance. Consequently, the USD/JPY bull market resumed.
Trade Sample 2: Bearish Inverted Hammer Signals Downturn
The chart below belongs to the USD/JPY. As demonstrated, the 4-hour chart formed a bearish inverted hammer candlestick pattern below when the price tested the 143.7 mark. As a result, a new bearish wave was initiated.
Trade Sample 3: Hanging Man at 0.929 Halts AUD/CAD Rise
The AUD/CAD 4-hour chart below shows the price chart forming bearish ‘hanging man’ candlestick patterns near the 0.929 resistance, which caused the downtrend to resume.
Trade Sample 4: AUD/CAD Bullish Engulfing Pattern Sparks Rally
On the same chart, the AUD/CAD 4-hour formed a bullish engulfing candlestick pattern. Consequently, the Australian dollar began to erase its recent losses against the Canadian dollar.
Trade Sample 5: Bearish Engulfing Triggers Dip in USD/CHF
The 4-hour chart presents the USD/CHF chart, where the bears formed a ‘bearish engulfing’ candlestick pattern, which caused the dollar price to dip.
Spotting Candlestick Patterns at Critical Levels
Bullish and bearish candlestick patterns could emerge anywhere in the market. However, traders and investors should consider patterns formed near key support and resistance levels. Because this is an important subject, I added a good trading sample below.
Live Sample: Oil Rise from $72.9 on Bullish Hammer Signal
The above 4-hour below belongs to WTI Crude Oil. On September 9, the oil price bounced from the %50 Fibonacci retracement level, the $72.9 mark. Before the Oil price rose to $76.5, the Candlestick pattern indicator highlighted a bullish hammer candlestick pattern on the price chart. This signal should have been considered important because it was formed near a key support level.
Later, on October 15, the Oil price broke below the 61.8% Fibonacci retracement level. Then, on October 18, the price tested the broken support as resistance when the candlestick pattern indicator formed a bearish evening star candlestick.
Consequently, the downtrend resumed. The bearish evening star candlestick pattern should have been taken seriously because it was formed near a key resistance area.
This is a good example of using the candlestick pattern indicator more efficiently in technical analysis by mixing it with Fibonacci tools and trendlines.
Final Word
I hope this article assists you, dear readers, in improving your trading portfolio by filtering false signals on the price chart. I endeavor to share my experience and knowledge in forex and CFD trading with fellow traders worldwide. Learning should be free, and thank you for staying with me in this article.
If you have any questions about these indicators, please feel free to message me or contact me.