Butterfly Pattern Indicator (MT4)

About the Butterfly Pattern Indicator

The Butterfly Pattern Indicator for MT4 is a powerful harmonic trading tool that helps traders identify potential market reversal zones with precision.

It automatically scans for Butterfly formations, one of the most reliable patterns in harmonic trading, and plots them directly on your chart.

This tool is ideal for traders who follow geometric trading methods or want to enhance their entry accuracy using Fibonacci-based reversal setups.

Main Features

• Automatically detects bullish and bearish Butterfly patterns
• Works on all timeframes and currency pairs
• Includes alert notifications when a new pattern appears
• Based on harmonic Fibonacci ratios and symmetry

Free Download

Download the “butterfly-pattern-indicator.mq4” indicator for MT4

Benefits of Using This Indicator

• Improves your ability to spot high-probability reversal points
• Reduces manual chart scanning and drawing errors
• Supports both trend reversals and countertrend trading
• Enhances precision and confidence in trading decisions
• Great for combining with RSI, MACD, or candlestick patterns

Indicator Example Chart (EUR/USD M15)

The picture below shows the Butterfly Pattern MT4 indicator in action on the trading chart.

How To Trade Using This Indicator

Entry Rules

• Buy when a bullish Butterfly arrow is displayed on the chart
• Sell when a bearish Butterfly arrow is displayed on the chart
• Confirm with other tools (e.g., trendlines, divergence) for stronger setups

Stop Loss

• Place a stop loss slightly beyond the low (buy) or high (sell) of the Butterfly arrow

Take Profit

• TP1: Target the retracement to the B point
• TP2: Target the A point
• TP3: Extended Fibonacci targets based on XA leg

Pros

• Fully automated detection – no manual drawing required
• Based on a proven harmonic reversal framework
• Flexible use in trending or ranging markets

Cons

• May generate false signals in low volatility conditions
• Requires a basic understanding of harmonic patterns for best use

Download Now

Download the “butterfly-pattern-indicator.mq4” indicator for Metatrader 4

Butterfly Pattern + Heiken Ashi Smoothed Alerts Strategy (MT4)

This strategy combines harmonic reversal precision from the Butterfly Pattern Indicator with trend confirmation from the Heiken Ashi Smoothed Alerts Indicator.

The idea is to catch market reversals at Fibonacci-based harmonic levels and confirm direction using smoothed candlestick signals, improving accuracy and reducing premature entries.

What This Strategy Is About

The Butterfly Pattern Indicator identifies potential reversal zones using harmonic geometry, offering high-probability turning points in the market.

The Heiken Ashi Smoothed Alerts Indicator filters these zones by confirming when the market structure shifts in the forecasted direction.

This combination gives traders a powerful edge in timing reversals while staying aligned with momentum.

Buy Rules

• Wait for a completed bullish Butterfly pattern to appear on the chart.
• After the pattern completes, wait for the Heiken Ashi Smoothed candle to close in blue, with an optional alert confirmation.
• Enter a buy trade on the next candle open after confirmation.
• Place the Stop Loss just below point X or the lowest recent swing low.
• Take Profit at Fibonacci targets (38.2%, 61.8%) or use a 1:2 risk-reward ratio.

Sell Rules

• Wait for a completed bearish Butterfly pattern to appear.
• After the pattern forms, wait for a red Heiken Ashi Smoothed candle to close, with alert confirmation if enabled.
• Enter a sell trade on the next candle open.
• Place a Stop Loss just above point X or the most recent swing high.
• Take Profit at key Fibonacci levels or based on a fixed R:R strategy.

Case Study 1

USD/JPY H1 Chart Analysis (14-Day Sample Period):

• Total Signals: 28 trades
• Winning Trades: 18 (64.3%)
• Average Win: +54 pips
• Average Loss: -24 pips
• Net Result: +732 pips over the testing period

Case Study 2

GBP/CHF M30 Chart Analysis (10-Day Sample Period):

• Total Signals: 42 trades
• Winning Trades: 27 (64.3%)
• Average Win: +36 pips
• Average Loss: -15 pips
• Net Result: +747 pips over the testing period

Advantages

• Combines geometric reversal precision with trend confirmation.
• Reduces false entries by filtering harmonic signals with the Heiken Ashi structure.
• Works across multiple timeframes and pairs.

Drawbacks

• Butterfly patterns may repaint slightly before final confirmation.
• Smoothed Heiken Ashi candles introduce a slight entry lag.
• Requires patience to wait for full pattern completion and confirmation.

Strategy Conclusion and Tips

This harmonic-trend combo strategy is great for reversal traders who prefer technical accuracy and confirmation-based execution.

It’s especially useful on H1 and M30 charts, offering multiple trades per week with solid win potential when used during active market sessions.

• Avoid trading during low liquidity hours or just before major news releases.
• Always wait for Heiken Ashi confirmation after the pattern — don’t rush entries.
• Backtest on your preferred pair and timeframe to optimize Stop Loss and Take Profit levels.

Indicator Specifications

FAQ Section

Do I need to know harmonic trading to use this?

Basic knowledge helps, but the indicator does the heavy lifting by identifying patterns and giving you ready-to-trade setups.

Does this repaint?

No. Once a pattern is completed and confirmed, it stays fixed on the chart.

Can I use it for scalping?

Yes, but it works best on M15 and above due to harmonic pattern formation.

Is it beginner-friendly?

Yes. It’s easy to install, and the visual signals are intuitive to follow.

Final Words

The Butterfly Pattern Indicator for MT4 is a must-have for traders who value precision, structure, and strategic entry points.

It brings the power of harmonic trading directly into your charting workflow, removing guesswork and offering clean setups.

Whether you use it alone or as part of a multi-tool strategy, it will boost your technical edge.