Chart patterns are a very powerful trading tool when it comes to forex or any other financial market.
This is what the Ascending/Descending chart pattern indicator for Metatrader 4 is all about.
This chart pattern indicator identifies ascending and descending triangles on any MT4 chart and displays it on the chart together with an arrow to buy or to sell.
This indicator makes it easy to anyone to trade breakouts from ascending and descending triangles.
Target price is calculated as follows:
Entry price + the total pattern height for a buy trade (upward breakout)
Entry price – the total pattern height for a sell trade (downward breakout)
Stop-loss:
Buy trade: set a stop-loss a few pips below the low price of the chart pattern
Sell trade: set a stop-loss a few pips above the high price of the chart pattern
Free Download
Download the “breakout-pattern.mq4” MT4 indicator
Indicator Chart (EUR/USD H4)
The EUR/USD 4-Hour chart below displays the Ascending/Descending chart pattern Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Ascending/Descending chart pattern MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Initiate a long trade when a blue arrow appears on the chart.
Sell Signal: Initiate a short trade when a red arrow appears on the chart.
Trade Exit: follow the stop-loss and take profit rules as explained above.
Ascending/Descending Pattern + HalfTrend Arrow Strategy for MT4
This MT4 strategy blends chart-pattern signals from the Ascending/Descending Chart Pattern Indicator with trend confirmation from the HalfTrend 1.02 with Arrows Indicator.
The goal is to capture moves right when a chart pattern arrow signals a potential reversal or continuation, and confirm that move with the smoother trend arrow from HalfTrend.
This combination works well on lower to medium timeframes like M5, M15 or H1, and is suitable for traders who want clarity through pattern and trend alignment.
By requiring both a pattern-based arrow and a trend arrow, the chance of random noise or false entries is reduced.
The strategy targets traders interested in intraday or short-term swing moves across varied currency pairs.
Buy Entry Rules
- Wait for a blue arrow from the Ascending/Descending Pattern indicator to appear (pattern suggests upward reversal or continuation).
- Confirm that the HalfTrend indicator shows a blue arrow (indicating bullish trend) at the same time or just after the pattern arrow.
- Open a long trade on the candle closing with both arrows or at the next open if confirmation holds.
- Place a stop loss a few pips under the recent swing low or just below the last significant support.
- Set take profit at the next resistance zone or aim for a defined target (for example, 20–40 pips depending on timeframe and pair).
- Optionally apply a trailing stop if price moves in your favor.
Sell Entry Rules
- Wait for a red arrow from the Ascending/Descending Pattern indicator (pattern points to downward reversal or continuation).
- Confirm that the HalfTrend indicator shows a magenta arrow (indicating bearish trend) simultaneously or shortly after.
- Open a short trade on the candle close with both arrows or at the next candle open if confirmation holds.
- Place a stop loss a few pips above the recent swing high or above the last significant resistance.
- Take profit at the next support zone or set a target (e.g. 20–40 pips), or trail stop as price moves in your favor.
Advantages
- Pattern-based arrows provide pre-defined setups; the trader doesn’t need to draw manually.
- HalfTrend adds trend direction confirmation, reducing false signals during choppy periods.
- Combining pattern and trend makes entries more selective and potentially higher quality.
- Flexible enough to apply on different pairs and timeframes depending on trading style.
- Good for intraday or short swing trades, offering a balance between reactivity and confirmation.
Drawbacks
- If the market is highly volatile or news-driven, pattern arrows may appear but the trend may reverse quickly, hitting the stop loss.
- The need for dual confirmation (pattern + trend) reduces the frequency of trades; many potential moves are skipped.
- On higher timeframes, signals may come too late, reducing profit potential and making stop losses wider.
Case Study 1
On EURJPY M15 during a calm European session, the Ascending/Descending Pattern indicator generated a blue arrow after a short downward move.
The price had formed a small bottom pattern.
At almost the same time, HalfTrend showed a blue arrow confirming a bullish trend.
A long position was opened at the close of that candle.
The stop loss was placed just below the recent swing low. Over the next several candles price rose steadily.
The trade was closed near a prior resistance level, yielding about 30 pips.
Case Study 2
On GBPUSD H1, after a pullback inside a broader downtrend, the Ascending/Descending Pattern indicator produced a red arrow suggesting bearish continuation.
The HalfTrend indicator displayed a magenta arrow around the same time.
A short trade was entered at the next candle open.
The stop loss was placed just above the recent swing high.
Price moved downward gradually over the following hours before reaching the next support zone, offering a profit of roughly 45 pips.
Strategy Tips
- Prefer trading during active market sessions for stronger directional moves rather than during quiet times when the market tends to chop.
- Use tighter stop losses on lower timeframes and slightly wider ones on higher timeframes to accommodate volatility.
- If price moves strongly but stalls near resistance/support, consider partial closure or a trailing stop to lock in profits.
- Don’t overtrade: wait for high-quality setups and avoid forcing trades when arrows align in unclear market conditions.
Download Now
Download the “breakout-pattern.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (number of bars, alert) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: chart pattern
