Forex Candlestick Pattern Identifier is a free indicator for MT4 (Metatrader 4) that displays the most popular candlestick patterns on the activity chart.
For example, it identifies the Hammer, Doji, Piercing, and Harami trading patterns.
Candlestick patterns can be used to find high probability trade entries and exits, or to confirm buy & sell trade setups issued by other trading systems or strategies.
The indicator works equally well on all assets (Forex, CFD stocks, Indices, Cryptocurrencies, Commodities,..) and shows promising results if used correctly.
Free Download
Download the “Pattern.mq4” indicator for MT4
Indicator Chart (USD/JPY M15)
The picture below shows the Forex Candlestick Pattern Identifier mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy to trade with the Forex Candlestick Pattern Identifier indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Candlestick pattern
Does the indicator repaint? No.
Forex Candlestick Pattern Identifier & 6 Moving Averages MT4 Scalping Strategy
This scalping strategy combines the Forex Candlestick Pattern Identifier Indicator for MT4 and the 6 Moving Averages Forex Trend Indicator for MT4.
Together, they form a fast-reacting, price-action-based scalping system that helps traders pinpoint precise entry and exit points within minutes.
The candlestick pattern identifier highlights strong reversal or continuation formations, while the 6 Moving Averages indicator confirms the overall market direction.
This setup works best on the M1 to M15 timeframes and is ideal for traders who prefer quick trades with a defined structure.
It suits both beginners and experienced scalpers who want to trade during volatile market hours such as the London or New York sessions.
Buy Entry Rules
- Wait until all six moving averages on the 6 MA Trend Indicator slope upward, confirming a bullish trend.
- Look for a bullish candlestick pattern on the Candlestick Pattern Identifier, such as a Hammer, Bullish Engulfing, or Piercing Line.
- Once both conditions align, open a buy trade at the close of the confirmation candle.
- Set a stop loss 10–15 pips below the most recent swing low.
- Take profit after 20–30 pips or when a bearish reversal pattern appears.
Sell Entry Rules
- Wait until all six moving averages slope downward, signaling a bearish trend.
- Look for a bearish candlestick pattern such as a Shooting Star, Bearish Engulfing, or Evening Star on the chart.
- Open a sell trade once both conditions confirm bearish momentum.
- Set a stop loss 10–15 pips above the last swing high.
- Take profit after 20–30 pips or when a bullish reversal pattern appears.
Advantages
- Combines trend confirmation with proven price action signals.
- Offers clear and visual entries ideal for beginners.
- Can be applied to any currency pair or session.
- Helps identify trend reversals early while staying aligned with market direction.
Drawbacks
- Requires fast reaction time to capitalize on short-term setups.
- Not suitable for low-volatility sessions or illiquid pairs.
Case Study 1 – USD/JPY, M5 Chart
During the New York session, all six moving averages sloped upward on the USD/JPY 5-minute chart, confirming strong bullish momentum.
A bullish Hammer pattern appeared near 148.20, signaling potential continuation.
A buy trade was placed at 148.25 with a stop loss at 148.10.
The pair moved quickly up to 148.55, hitting the 30-pip target in less than 25 minutes for a clean scalp.
Case Study 2 – EUR/CHF, M1 Chart
On the EUR/CHF 1-minute chart, all six moving averages began sloping downward after a period of sideways action.
Shortly after, a Bearish Engulfing pattern appeared at 0.9430, confirming renewed bearish pressure.
A short trade was opened at 0.9428 with a 10-pip stop loss and a 20-pip target.
The move unfolded rapidly, reaching 0.9408 within 15 minutes during the early London session.
Strategy Tips
- Focus on liquid pairs like EUR/USD, GBP/USD, or USD/JPY for tighter spreads and faster executions.
- Trade during high-volume sessions for the best pattern accuracy.
- Use a trailing stop once the price moves 15–20 pips in your favor to lock in profits.
- Avoid countertrend entries—always ensure that the 6 MA direction supports your candlestick pattern.
This scalping method blends technical precision with a clear price structure.
By using candlestick patterns for timing and the 6 Moving Averages for direction, traders can consistently capture short, high-probability moves while managing risk efficiently.
