Reversal candlestick patterns are an excellent way to enter or exit a trade. There are a quite a few candlestick patterns you can use and the best way to find them is to use a candlestick pattern indicator which you can download below.
You don’t want to miss any important reversal candle chart pattern and use pattern recognition software is one way to help ensure you are on top of any trading opportunities.
If you are looking for a Forex candlestick pattern indicator MT4, here’s one that I’ve found that is really good and it is called the Pattern_Recognition_Master_v3a.
It is a free candlestick pattern recognition indicator for Metatrader that will show:
- Bullish patterns
- Bearish patterns
- With price action understanding, you will even spot potential breakout trading patterns which can get you on a solid trend.
Learning Candlestick Patterns Takes Time
There are a lot of Japanese candlestick patterns but only a handful are worth looking for. If you are looking for a reversal pattern, our minds often can make patterns out of nothing (like seeing animals in clouds).
Our brains are pattern recognition computers and will help feed your bias. A chart pattern indicator can help take the subjectivity out of your trading and ensure you are only looking at chart patterns that matter.
The candlestick pattern recognition indicator you can download will show 10 chart patterns for bullish and bearish outlooks:
- Shooting star
- Evening star
- Evening doji star
- Dark cloud pattern
- Bearish engulfing pattern
- Bullish hammer
- Morning star
- Morning doji star
- Piercing line pattern
- Bullish engulfing pattern
The meaning of these candlesticks will become clear when you see them on a chart. Keep in mind that candlestick patterns are a legitimate form of technical analysis and you should put some time into learning how to trade with them.
How The Forex Candlestick Pattern Indicator Works
How this candlestick pattern indicator works is pretty simple once you upload onto your MT4 chart:
- Automatically scans the charts no matter which time frame you put it on and it will show you exactly where there are specific candlestick pattern formations such as the Evening Doji Star, Evening Star, Shooting Star, Bearish Engulfing Pattern,Dark Cloud Pattern, etc…
- The candlestick pattern indicator is very easy to interpret by the user because on the top left hand corner you will see that it has all the key/legend of the candlestick patterns that it can show.
- If a specific candlestick forms, it shows some abbreviated letters above or below the pattern and you can interpret these abbreviation through the legend
- Any abbreviated letters that form above a candlestick high indicates bearish candlestick patterns and any that forms below the low of a candlestick indicate that that specific candlestick is bullish.
- Bullish hammer
- Bearish engulfing
You could actually use these weekly candlesticks to have a bias for the coming week on lower time frame charts.
How To Trade With The Reversal Candlestick Pattern Indicator?
There are many Forex trading strategies on this Forex website where the use of candlestick as a trade entry confirmation is imperative and will greatly assist you as a Forex trader who is just starting out and finding it difficult to tell which candlestick is which.
That’s where the candlestick indicator comes in very handy. You can be trading in any time frame using this candlestick pattern indicator and it will still show any reversal candlestick that forms in the time frame your chart is on.
You don’t have to trade every candle pattern you see and in certain conditions you’d want to ignore some of the patterns:
- In an uptrend, you’d only want to trade bullish reversal candlestick patterns which the indicator shows
- In a downtrend, you’d only want to trade bearish reversal candlestick patterns
You may want to focus on support and resistance zones for trading any candlestick reversal the indicator shows. These are previous market turning points and could act in that manner again. Even using a technical indicator in a strategy like our Bollinger band trading strategy would work well with this indicator.
The standard trend line trading strategycould also be used as a reversal area and you would only trade if the pattern recognition software plots one of the 10 candlestick patterns
Candlestick Pattern Indicator Download Link
Here’s your download link to the Candlestick pattern indicator called the Pattern Recognition Master Version 3a: Pattern_Recognition_Master_v3a
Do you use this indicator in your trading?
I don’t need it because I already know most of the candlesticks and what to look for when I’m looking at charts looking for trading setups.
But it would be really good indicator if you are beginner trader learning about candlesticks etc.