Pattern Recognition Master System MT5
- Indicators
- Version: 1.10
- Updated: 29 July 2026
Product Overview
Pattern Recognition Master System is a main‑chart classic candlestick pattern auto‑recognition indicator designed for both the MT4 and MT5 platforms. It automatically detects and labels eleven classic reversal and continuation patterns on the main chart, covering double tops and bottoms, head‑and‑shoulders tops and bottoms, hammer and hanging man, engulfing, doji, and morning and evening stars, with an independent cooldown period assigned to each pattern category to suppress duplicate signals at the source. With compact visuals, clearly layered signals, and per‑pattern alert switches, it is an ideal main‑chart tool for building a pattern‑trading system.
Core Features
Automatic Pattern Recognition and Compact Labeling The system automatically draws pattern‑name text and directional arrows near qualifying candles. Bearish patterns (double top, head‑and‑shoulders top, hanging man, bearish engulfing, doji, evening star) are labeled above the candle, while bullish patterns (double bottom, head‑and‑shoulders bottom, hammer, bullish engulfing, morning star) are labeled below the candle; when multiple patterns appear on the same candle, they are automatically offset in a compact layout to avoid text overlap. Double tops and head‑and‑shoulders tops come with a red downward arrow, and double bottoms and head‑and‑shoulders bottoms come with a green upward arrow, making direction instantly clear. The MT5 version additionally supports pattern candle color‑coding, coloring the key candles that trigger patterns according to their bullish or bearish nature, so that pattern locations are shown intuitively through candle color.
Bearish Pattern Signals
- M Top (Double Top): Triggered when the current candle is a local peak, a similar high of comparable height exists within the last 10 to 25 candles, and the current candle closes bearish, displaying a red downward arrow with the text "M Top" above the candle. This means price has failed twice to break the same resistance zone and bullish momentum is exhausted, making it a classic top‑reversal short or exit signal.
- HS Top (Head‑and‑Shoulders Top): Triggered when a head‑and‑shoulders top structure is confirmed (the central head is higher than both shoulders, the two shoulders are of similar height, the current candle is a local peak, and the close is below the 10‑period moving average), displaying a red downward arrow with the text "HS Top" above the candle. This means a complete top‑reversal structure has formed, making it an extremely reliable trend‑reversal short signal.
- Hanging (Hanging Man): Triggered when the candle's lower shadow is at least twice the body length, the upper shadow is smaller than the body, and the close is above the 10‑period moving average, displaying the orange text "Hanging" above the candle. This means that at the high of an uptrend, signs of weakening downside support are appearing, making it a short‑term topping warning signal.
- Engulf- (Bearish Engulfing): Triggered when the current bearish candle is completely engulfed by the previous bullish candle (open above the prior close and close below the prior open), displaying the red text "Engulf-" above the candle. This means bears have recaptured the entire prior gain and pushed back, making it a strong short‑term reversal short signal.
- Doji (Doji): Triggered when the candle body is less than 10% of the total candle range, displaying the white text "Doji" above the candle. This means bullish and bearish forces have reached a brief balance within the candle, making it a neutral warning signal that the trend may pause or reverse; confirmation from the surrounding candles is recommended.
- E-Star (Evening Star): Triggered when a three‑candle combination satisfies "the candle two bars back is bullish, the middle candle has a clearly smaller body, and the current candle closes bearish below the midpoint of the body two bars back," displaying the aqua text "E-Star" above the candle. This means a clear three‑candle reversal structure has appeared at the high of an uptrend, making it a classic top‑reversal exit signal.
Bullish Pattern Signals
- W Bot (Double Bottom): Triggered when the current candle is a local bottom, a similar low of comparable depth exists within the last 10 to 25 candles, and the current candle closes bullish, displaying a green upward arrow with the text "W Bot" below the candle. This means price has found support twice at the same level and bearish momentum is exhausted, making it a classic bottom‑reversal long signal.
- HS Bot (Head‑and‑Shoulders Bottom): Triggered when a head‑and‑shoulders bottom structure is confirmed (the central head is lower than both shoulders, the two shoulders are of similar depth, the current candle is a local bottom, and the close is above the 10‑period moving average), displaying a green upward arrow with the text "HS Bot" below the candle. This means a complete bottom‑reversal structure has formed, making it an extremely reliable trend‑reversal long signal.
- Hammer (Hammer): Triggered when the candle's lower shadow is at least twice the body length, the upper shadow is smaller than the body, and the close is below the 10‑period moving average, displaying the yellow text "Hammer" below the candle. This means strong downside support has appeared at the low of a downtrend, making it a short‑term bottoming rebound signal.
- Engulf+ (Bullish Engulfing): Triggered when the current bullish candle is completely engulfed by the previous bearish candle (open below the prior close and close above the prior open), displaying the green text "Engulf+" below the candle. This means bulls have recaptured the entire prior loss and pushed back, making it a strong short‑term reversal long signal.
- M-Star (Morning Star): Triggered when a three‑candle combination satisfies "the candle two bars back is bearish, the middle candle has a clearly smaller body, and the current candle closes bullish above the midpoint of the body two bars back," displaying the magenta text "M-Star" below the candle. This means a clear three‑candle reversal structure has appeared at the low of a downtrend, making it a classic bottom‑reversal entry signal.
Practical Application
In day‑to‑day pattern trading, it is recommended to use signals in layers by structural level. Double tops/bottoms and head‑and‑shoulders tops/bottoms are multi‑candle structural reversal signals with the highest reliability, suitable as the core basis for main‑position entry or exit; hammer, hanging man, and engulfing are single‑ or double‑candle momentum reversal signals that react quickly, suitable for short‑term timing and trial positions; doji is a neutral balance signal that does not itself provide a directional conclusion and should be treated as a prompt to "wait for the next candle to confirm"; morning and evening stars are three‑candle combination reversal signals with structural completeness between the two, suitable as confirmation signals for swing entries.
When bearish patterns (M Top, HS Top, Hanging, Engulf-, E-Star) appear, long holders should consider trimming or exiting, and flat traders can look for short opportunities; when bullish patterns (W Bot, HS Bot, Hammer, Engulf+, M-Star) appear, short holders should consider covering, and flat traders can look for long opportunities. All pattern signals are best used in combination with key support and resistance levels: reliability increases significantly when a pattern appears near a prior high or low, a trendline, or a moving average.
Parameter Settings
Cooldown filter parameters: The system assigns independent cooldown periods to four pattern categories. Double Top/Bot cooldown defaults to 15 candles, controlling the repetition frequency of double top and bottom signals; Head-Shoulder cooldown defaults to 20 candles, controlling the repetition frequency of head‑and‑shoulders patterns; Candle pattern cooldown defaults to 3 candles, controlling the repetition frequency of single‑candle patterns such as hammer, hanging man, engulfing, and doji; Star pattern cooldown defaults to 5 candles, controlling the repetition frequency of morning and evening stars. Max Lookback Bars defaults to 2000, controlling the maximum number of historical candles marked with patterns, balancing chart cleanliness with backtesting needs.
Alert settings: Alert On Bar Close is enabled by default and is strongly recommended to stay enabled, so alerts fire only after a candle closes and confirms the pattern, avoiding false pattern signals caused by intrabar price swings. Popup and Sound are enabled by default, while Push and Email are disabled by default; traders can adjust them flexibly according to their screen‑watching habits.
Per‑signal alert switches: The system lets you independently enable or disable alerts for each of the eleven pattern signals, M Top, W Bot, HS Top, HS Bot, Hammer, Hanging, Engulf+, Engulf-, Doji, M-Star, and E-Star. By default, alerts are enabled for double tops/bottoms, head‑and‑shoulders tops/bottoms, engulfing, and morning/evening stars, while hammer, hanging man, and doji are disabled by default due to their higher frequency, so you receive only the high‑quality signals relevant to your current strategy.
Usage Recommendations
This indicator applies to mainstream instruments such as forex, precious metals, indices, and cryptocurrencies, and is fully compatible with the MT4 and MT5 terminals. It is recommended for use on the H1 timeframe and above; pattern structures on larger timeframes are more stable and practically valuable than on smaller ones, effectively reducing noise patterns.
It is recommended to combine this indicator with trend indicators (such as moving averages) or volume indicators. For example, a Hammer or Engulf+ signal appearing within an uptrend is a with‑trend pullback buying opportunity with higher reliability than a counter‑trend signal; a Hanging or Engulf- signal appearing within a downtrend is a with‑trend rebound shorting opportunity. No pattern recognition can guarantee a 100% win rate, so please always set strict stop losses and control position risk, using this indicator as a decision aid rather than the sole basis.
Summary
Pattern Recognition Master System perfectly fuses three mechanisms: automatic recognition of eleven classic candlestick patterns, layered cooldown filtering, and independent alert control. It is not only a visually compact, clearly signaled main‑chart pattern labeling tool but also a practical pattern‑trading system with structural grading, directional layering, and all‑round filtering, suitable for traders at every level to build robust reversal‑capture and pattern‑following rules and capture high‑win‑rate reversal opportunities while controlling risk.
