The Candlestick Arrow Signals Metatrader 4 forex indicator identifies bullish and bearish single candlestick trading patterns on the activity chart.
It identifies Bear Cross, Bull Cross, Bull Pierce, Hammer, Dark Cloud and Evening Star single candlestick patterns.
The indicator displays a blue arrow on the chart when the pattern is bullish and a red arrow when the pattern is bearish.
Use the Candlestick Arrow Signals forex indicator together with other analysis tools or technical indicators.
For example, use together with trading oscillators (MACD, Stochastics, RSI,..) or trend following indicators (SMA, EMA, ADMI, Bollinger Bands,…)
Free Download
Download the “figures-candle-indicator.mq4” MT4 indicator
Indicator Chart (AUD/USD H1)
The AUD/USD Hourly chart below displays the Candlestick Arrow Signals Forex Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Candlestick Arrow Signals MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade when a bullish candlestick pattern (blue arrow) appears on the trading chart.
Sell Signal: Open sell trade when a bearish candlestick pattern (red arrow) appears on the trading chart.
Trade Exit: Close the open buy/sell forex position when an opposite signal occurs, or use your own method of trade exit.
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
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (AlertON, DrawCandle) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Candlestick
