About the Candlestick Arrow Signals Indicator
The Candlestick Arrow Signals Indicator is a highly specialized technical tool for the Metatrader 4 platform that automates the identification of classic price action formations.
Instead of manually scanning for complex setups, this indicator continuously monitors the market for specific single and multi-candle patterns such as the Hammer, Bull Pierce, and Dark Cloud.
Once a valid formation is detected, it instantly plots a visual signal on the chart, allowing traders to focus on execution rather than chart reading.
A major advantage of the Candlestick Arrow Signals Indicator is its ability to categorize price action into bullish and bearish sentiments across any timeframe.
It tracks powerful reversal and continuation patterns like the Evening Star or Bear Cross, providing immediate context for potential market turning points.
While it serves as an excellent entry trigger, it is most effective when integrated into a broader strategy.
By combining these signals with trend filters or support and resistance levels, traders can significantly improve the accuracy of their trade entries.
Free Download
Download the “figures-candle-indicator.mq4” MT4 indicator
Key Features
- The indicator identifies complex patterns like Bull Pierce and Evening Star.
- It plots blue arrows for bullish setups and red arrows for bearish ones.
- The tool automates the detection of specific price action reversal signals.
- It provides real-time alerts when a new candle pattern is confirmed.
Indicator Chart
The chart displays the Candlestick Arrow Signals indicator highlighting specific price action moments with color-coded arrows.
Blue arrows appear below the price bars to signal bullish candlestick patterns, suggesting a potential move higher.
Red arrows are printed above the candles to indicate bearish formations, marking areas where sellers might be taking control.
Guide to Trade with Candlestick Arrow Signals Indicator
Buy Rules
- Monitor the price action for the appearance of a blue arrow below a candlestick.
- Confirm the arrow represents a bullish pattern like a Hammer or Bull Pierce.
- Open a buy trade at the start of the next candle once the signal is locked.
- Ensure the signal aligns with a major support level for higher probability.
Sell Rules
- Watch for a red arrow to appear above a price candlestick on the chart.
- Verify the signal indicates a bearish pattern such as an Evening Star or Bear Cross.
- Initiate a sell trade immediately after the signal candle has closed.
- Prioritize signals that occur near established resistance zones.
Stop Loss
- Place a defensive stop loss a few pips below the low of the signal candle for buy trades.
- Position the stop loss a few pips above the high of the signal candle for sell trades.
- Maintain a safe distance from the market to avoid premature exits during volatility.
Take Profit
- Close the position when an arrow of the opposite color appears on the chart.
- Exit the trade if the price reaches a key psychological level or previous pivot.
- Apply a fixed 1:1.5 risk-to-reward ratio to ensure long-term account stability.
Candlestick Arrow Signals + Double EMA MT4 Forex Strategy
This forex strategy combines the Candlestick Arrow Signals MT4 Indicator and the Double EMA Trading MT4 Indicator.
The Candlestick Arrow Signals indicator identifies key single candlestick patterns such as Bear Cross, Bull Cross, Bull Pierce, Hammer, Dark Cloud, and Evening Star.
It displays a blue arrow for bullish patterns and a red arrow for bearish patterns.
The Double EMA Indicator confirms trend direction: when price is above the double EMA, the trend is bullish, and when price is below, the trend is bearish.
Combining these two indicators ensures that trades are taken in the direction of the prevailing trend while using candlestick patterns for precise entries.
This strategy is suitable for M15 and H1 charts, ideal for day trading major currency pairs during active market sessions.
It helps traders capture trend continuation moves and reduces false entries by requiring confirmation from both candlestick patterns and trend direction.
Buy Entry Rules
- Price is above the Double EMA, confirming a bullish trend.
- The Candlestick Arrow Signals indicator displays a blue arrow on a bullish pattern.
- Enter a buy trade immediately after the confirming candle closes.
- Place a stop loss below the recent swing low or below the low of the candlestick signal.
- Take profit at the next resistance level or after a pip gain suitable for the timeframe, typically 30–50 pips on H1 and 15–25 pips on M15.
Sell Entry Rules
- Price is below the Double EMA, confirming a bearish trend.
- The Candlestick Arrow Signals indicator displays a red arrow on a bearish pattern.
- Enter a sell trade immediately after the confirming candle closes.
- Place a stop loss above the recent swing high or above the high of the candlestick signal.
- Take profit at the next support level or after a pip drop suitable for the timeframe, typically 30–50 pips on H1 and 15–25 pips on M15.
Advantages
- Combines trend confirmation with candlestick pattern signals for higher-probability trades.
- Clear buy/sell arrows make it easy to spot bullish and bearish setups.
- Helps avoid counter-trend trades by requiring price to be aligned with the Double EMA.
- Effective for capturing trend continuation moves in major currency pairs.
Drawbacks
- Single candlestick patterns can produce false signals without trend confirmation.
- Requires monitoring to enter trades immediately after the candlestick closes.
- News events or sudden spikes can invalidate candlestick signals or trigger reversals.
Example Case Study 1
On EURGBP H1 during the London session, the price was above the Double EMA, confirming a bullish trend.
The Candlestick Arrow Signals indicator displayed a blue arrow on a Bull Pierce pattern at 0.8780.
A buy trade was entered at 0.8781 with a stop loss at 0.8768.
Price rose to 0.8820, capturing 39 pips before the next signal appeared.
Example Case Study 2
On AUDJPY M15 during the New York session, the price was below the Double EMA, confirming a bearish trend.
The Candlestick Arrow Signals indicator displayed a red arrow on a Bear Cross pattern at 87.45.
A sell trade was entered at 87.44 with a stop loss at 87.65.
Price dropped to 87.20, providing 24 pips profit before the next reversal signal appeared.
Strategy Tips
- Focus on major currency pairs with strong trends for more reliable signals.
- Wait for both the Double EMA trend confirmation and candlestick signal to align before entering trades.
- Use H1 for stronger trend confirmations and M15 for faster intraday opportunities.
- Place stop losses strategically below/above swing points or candlestick extremes to protect capital.
- Take profits near support or resistance levels, or when signs of trend weakening appear.
- Avoid trading during major news events to reduce the risk of sudden reversals.
- Keep a trading journal to track which patterns and pairs yield the best results.
Download Now
Download the “figures-candle-indicator.mq4” Metatrader 4 indicator
FAQ
Which specific candlestick patterns does this indicator identify?
The Candlestick Arrow Signals Indicator is programmed to detect several high-impact formations.
These include the Bear Cross, Bull Cross, Bull Pierce, Hammer, Dark Cloud, and the Evening Star.
Can I combine this tool with a trend-following indicator?
Yes, combining this tool with a trend-following indicator like a 50-period EMA or Bollinger Bands is highly recommended.
For instance, you could only take buy signals when the price is above the moving average and sell signals when it is below, which helps filter out low-probability counter-trend trades.
Summary
The Candlestick Arrow Signals Indicator is an essential tool for traders who want to incorporate professional price action analysis into their routine without the manual effort.
Its primary benefit is the instant recognition of complex patterns, providing a clear edge in identifying market reversals and continuations.
While the signals are powerful on their own, using them as a confluence factor with other technical tools will yield the best results.
