Pennants and triangles scanner MT5
This indicator identifies high-probability breakout patterns. It does this by identifying strong, symmetrical pennants and triangles. This pattern DOES NOT appear very often on higher timeframes. But when it does, it is a very high-probability setup.
The indicator also includes an Inside bars scanner. It can for example be used to detect a special type of Inside bars formation which is formed by a Master candle (MC) followed by 4 inside candles (please see the strategy explanation below).
The indicator can write the signals to a file which can be used by an Expert Advisor for auto trading. For instance this product.
- Can monitor all symbols visible in your Market Watch window at the same time. Apply the indicator to just one chart and instantly monitor the entire market.
- Monitors every timeframe, from M1 to MN, and sends you a real-time alert when a pennant, triangle or inside bar formation is identified, or when a breakout from the formation has occured.
- The indicator includes an interactive panel. Please see screenshot #4 below.
- Can be configured to show buy/sell lines and TP/SL lines (based on ATR multiplier). The lines will be shown on the chart which you open by clicking on a signal in the panel. Please see screenshot #5 below.
It is enough to place the indicator on one chart and you will receive an alert from any symbol and any time frame of your choice.
I recommend you to put the indicator on a EURUSD M5 chart, preferable a clean chart without any other indicators or Expert Advisors on it.
Please note that due to the multifunctionality neither buy/sell advice nor lines and arrows will be drawn on the chart where the indicator is installed. They can be drawn on the chart which will be opened when clicking on a signal in the panel.
Please find the description and explanation of the input parameters here.
Master candle strategy
Master Candle (MC) is a trading strategy based on a candle formation where the first (master) candle is followed by 4 smaller candles which are inside the first candle. The whole formation is built of 5 candles, independent of if bearish or bullish.
Timeframes: H1 and H4 charts. Even if the MC strategy works best on H1 it can be traded on all timeframe and currency pairs. Mainly on H4, H1 and M30 charts.
Currency pairs: Trades best on volatile pairs such as GBPUSD and GBPJPY.
After breaking MC high/low a position will be taken in the direction of the break. It is recommended that the MC has a size of 40 to 100 pips (but it depends on the volatility of the currency pair in question). It is also recommended to put stop orders for instance 5 pips above and below the MC high/low.
Some traders also use the rule that a break in any direction should occur during the next 3 candles after the MC creation (5 th candle). Anyway, it is highly recommended to cancel any stop order if there is no break after 24 hours.
Finally it is for better results recommended to trade in the direction of the trend as well as to avoid trading at strong and important price levels - resistances and supports. It is also advisable not to trade MC which appears inside another MC.
- added the possibility to set a custom alert text for alerts (not in the panel). The custom text will be added to the end of the regular alert text
- the indicator can now be used with my Signal EA (if the breakout logic has been enabled in the indicator): https://www.mql5.com/en/market/product/43820
- added an option to disable scanning of pennants and triangles (only inside bars will be scanned)
to better visualize the formation
- added an option to use symbols from the Market Watch window instead of the symbols written in the Symbols parameter
- added an on-chart panel for showing signals