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Candlestick Patterns MT4 & MT5

12 March 2026, 08:36

MT4 Version: Candlestick Patterns MT4

MT5 Version: Candlestick Patterns MT5

Complete User Documentation — MT4 & MT5

1. OVERVIEW

The Candlestick Patterns indicator provides alerts for 24 popular candlestick formations, helping traders identify potential market reversals and continuations. By analyzing price action through these patterns, traders can make informed decisions on entry and exit points. This tool is essential for both novice and experienced traders looking to enhance their technical analysis.

Who Should Use It: Retail forex traders seeking to improve their trading strategies with candlestick analysis.

Main Benefit: Easily identify key market signals and enhance your trading decisions with real-time alerts on candlestick patterns.

2. INPUT PARAMETERS & SETTINGS

This product shares a common set of general input settings with all Indicator products in this series. The following sections are covered in the common guide: Alert Settings (popup alert, push notification, email alert) and Display Settings (arrow size, colors). For full details refer to the Common General Input Settings Guide. The sections below cover only the product-specific inputs unique to this product.

1-Candle Patterns

This section controls the display of single candlestick patterns that can signal market reversals.

Setting Name	Type	Default Value	Description	Example
Show Doji	bool	false	Enables alerts for Doji candlesticks, indicating indecision in the market. Traders may adjust this to catch potential reversals.	true - Use when anticipating a market reversal after a prolonged trend.
Show Hammer	bool	false	Activates alerts for Hammer candlesticks, often signaling a bullish reversal. Useful for traders looking to enter long positions.	true - Use when the market is in a downtrend and shows signs of reversal.
Show Inverse Hammer	bool	false	Enables alerts for Inverse Hammer candlesticks, indicating potential bullish reversals after downtrends. Traders can use this to spot entry points.	true - Ideal when the market shows signs of reversing from a downtrend.
Show Hanging Man	bool	false	Activates alerts for Hanging Man candlesticks, which can signal bearish reversals. Traders may adjust this to identify potential selling opportunities.	true - Useful after an uptrend to catch potential reversals.
Show Shooting Star	bool	false	Enables alerts for Shooting Star candlesticks, indicating potential bearish reversals. Traders can use this for timely exit or short entry points.	true - Effective when the market shows signs of reversing after an uptrend.
Show Bullishspinningtop	bool	false	Activates alerts for Bullish Spinning Top candlesticks, suggesting indecision but potential bullish sentiment. Traders may use this to gauge market entry.	true - Use when looking for signs of bullish momentum.
Show Bearishspinningtop	bool	false	Enables alerts for Bearish Spinning Top candlesticks, indicating indecision with potential bearish sentiment. Useful for traders assessing market conditions.	true - Ideal for identifying potential short opportunities.

2-Candle Patterns

This section manages the display of two-candle patterns that may indicate stronger market signals.

Setting Name	Type	Default Value	Description	Example
Show Bullishengulfing	bool	true	Activates alerts for Bullish Engulfing patterns, indicating strong buying pressure. Traders can use this to enter long positions.	true - Effective after a downtrend to signal potential reversals.
Show Bearishengulfing	bool	true	Enables alerts for Bearish Engulfing patterns, suggesting strong selling pressure. Traders may use this to identify short opportunities.	true - Useful after an uptrend to catch potential reversals.
Show Bullishharami	bool	false	Activates alerts for Bullish Harami patterns, indicating potential bullish reversals. Traders may adjust this to identify entry points.	true - Effective after a downtrend to signal potential reversals.
Show Bearishharami	bool	false	Enables alerts for Bearish Harami patterns, suggesting potential bearish reversals. Useful for traders assessing market conditions.	true - Ideal for identifying potential short opportunities.
Show Bullishpiercingline	bool	false	Activates alerts for Bullish Piercing Line patterns, indicating potential bullish reversals. Traders may adjust this to catch entry points.	true - Effective after a downtrend to signal potential reversals.
Show Bearishpiercingline	bool	false	Enables alerts for Bearish Piercing Line patterns, suggesting potential bearish reversals. Useful for traders assessing market conditions.	true - Ideal for identifying potential short opportunities.
Show Rising Window	bool	false	Activates alerts for Rising Window patterns, indicating bullish sentiment. Traders can use this to gauge market entry.	true - Use when looking for signs of bullish momentum.
Show Falling Window	bool	false	Enables alerts for Falling Window patterns, indicating bearish sentiment. Useful for traders assessing market conditions.	true - Ideal for identifying potential short opportunities.
Show On Neck Up	bool	false	Activates alerts for On Neck Up patterns, indicating potential bullish reversals. Traders may adjust this to identify entry points.	true - Effective after a downtrend to signal potential reversals.
Show On Neck Down	bool	false	Enables alerts for On Neck Down patterns, suggesting potential bearish reversals. Useful for traders assessing market conditions.	true - Ideal for identifying potential short opportunities.

3-Candle Patterns

This section manages the display of three-candle patterns that may indicate stronger market signals.

Setting Name	Type	Default Value	Description	Example
Show Three White Soldier	bool	false	Activates alerts for Three White Soldiers patterns, indicating strong bullish sentiment. Traders may use this to enter long positions.	true - Effective after a downtrend to signal potential reversals.
Show Three Black Crows	bool	false	Enables alerts for Three Black Crows patterns, suggesting strong bearish sentiment. Useful for traders assessing market conditions.	true - Ideal for identifying potential short opportunities.
Show Morning Star	bool	false	Activates alerts for Morning Star patterns, indicating potential bullish reversals. Traders may use this to catch entry points.	true - Effective after a downtrend to signal potential reversals.
Show Evening Star	bool	false	Enables alerts for Evening Star patterns, suggesting potential bearish reversals. Useful for traders assessing market conditions.	true - Ideal for identifying potential short opportunities.
Show Three Inside Up	bool	false	Activates alerts for Three Inside Up patterns, indicating potential bullish reversals. Traders may adjust this to identify entry points.	true - Effective after a downtrend to signal potential reversals.
Show Three Inside Down	bool	false	Enables alerts for Three Inside Down patterns, suggesting potential bearish reversals. Useful for traders assessing market conditions.	true - Ideal for identifying potential short opportunities.
Show Tasuki Gap Up	bool	false	Activates alerts for Tasuki Gap Up patterns, indicating bullish sentiment. Traders may adjust this to catch entry points.	true - Effective when looking for signs of bullish momentum.
Show Tasuki Gap Down	bool	false	Enables alerts for Tasuki Gap Down patterns, suggesting bearish sentiment. Useful for traders assessing market conditions.	true - Ideal for identifying potential short opportunities.
Show Breakaway Up	bool	false	Activates alerts for Breakaway Up patterns, indicating strong bullish sentiment. Traders may use this to enter long positions.	true - Effective after a downtrend to signal potential reversals.
Show Breakaway Down	bool	false	Enables alerts for Breakaway Down patterns, suggesting strong bearish sentiment. Useful for traders assessing market conditions.

3. HOW IT WORKS

Core Calculation & Logic

This indicator monitors candlestick patterns to identify potential market reversals or continuations. It calculates the formation of 1, 2, and 3-candle patterns, providing alerts based on established trading principles.

By analyzing the closing prices and their relationships to previous candles, the indicator determines bullish or bearish signals, helping traders make informed decisions based on price action.

BUY and SELL Signal Conditions

BUY Signal — When does it appear? A BUY signal is generated when a bullish pattern, such as a Hammer or Bullish Engulfing, is detected. This indicates potential upward price movement.

SELL Signal — When does it appear? A SELL signal occurs when a bearish pattern, such as a Shooting Star or Bearish Engulfing, is identified, suggesting potential downward price movement.

Signal Confirmation: Traders will see arrows on the chart indicating the signals, along with alerts if enabled, prompting them to consider entering trades.

Recommended Action: It is advisable to confirm signals with higher timeframe analysis and set stop-loss orders to manage risk effectively.

Step-by-Step Workflow

Step 1: Install the Indicator Download and install the Candlestick Patterns indicator from the MQL5 marketplace.

Step 2: Add to Chart Attach the indicator to your desired trading chart in MT4 or MT5.

Step 3: Configure Settings Adjust the input settings to enable or disable specific candlestick patterns based on your trading strategy.

Step 4: Monitor Alerts Keep an eye on the alerts for potential trading opportunities as patterns form on the chart.

Step 5: Execute Trades Enter trades based on the signals provided, ensuring to manage your risk appropriately.

4. USAGE TIPS & BEST PRACTICES

Maximize the effectiveness of the Candlestick Patterns indicator by following these best practices.

Feature	Description
Enable Alerts	Turn on alerts to receive notifications when significant candlestick patterns are formed, ensuring you don't miss trading opportunities.
Customize Patterns	Select specific candlestick patterns to display based on your trading strategy, allowing for a more tailored analysis.
Use in Conjunction	Combine candlestick patterns with other technical indicators for enhanced confirmation of trading signals and improved decision-making.
Higher Timeframe Analysis	Always consider the context of higher timeframes to validate signals and avoid false entries, especially in volatile markets.

Quick Start Guide

Follow these steps to get started in under 5 minutes:

Download the Indicator: Get the Candlestick Patterns indicator from the MQL5 marketplace.
Install the Indicator: Place the downloaded file into the appropriate directory in your MT4 or MT5 platform.
Open Your Trading Platform: Launch MT4 or MT5 and navigate to the indicators section.
Add to Chart: Drag and drop the indicator onto your preferred trading chart.
Configure Settings: Adjust the parameters to enable the patterns you wish to monitor.
Enable Alerts: Turn on alerts to receive notifications for pattern formations.
Start Trading: Monitor the signals and execute trades based on the alerts received.