About the James 16 Patterns Indicator
The James 16 Patterns Indicator for MT4 is a comprehensive price action tool that identifies key chart patterns and highlights potential trading opportunities.
It detects bullish, bearish, and neutral patterns, allowing traders to anticipate market moves and plan entries and exits more effectively.
The indicator is displayed directly in the main MT4 chart window.
Green markers represent bullish patterns, red markers show bearish patterns, and neutral patterns can be displayed as non-directional markers.
Traders can turn specific patterns ON or OFF depending on their strategy preferences, giving full control over the signals shown.
Free Download
Download the “James16-Patterns-Indicator.mq4” indicator for MT4
Key Features
- Automatically detects 16 different price action patterns
- Displays bullish, bearish, and non-directional patterns on the chart
- Patterns can be turned ON or OFF based on user preference
- Green markers indicate bullish patterns, red markers indicate bearish patterns
- Helps traders anticipate reversals and continuation moves
Indicator Chart
The chart shows the James 16 Patterns Indicator applied to an MT4 price chart.
Bullish patterns appear as green markers, bearish patterns appear as red markers, and neutral patterns can also be shown if enabled.
Guide to Trade with the James 16 Patterns Indicator
Buy Rules
- Enter a buy trade when a bullish (green) pattern forms
- Confirm the pattern with trend direction or support levels
- Consider entering after a pullback for higher probability setups
- Focus on active sessions for stronger signals
Sell Rules
- Enter a sell trade when a bearish (red) pattern forms
- Confirm with resistance levels or broader market trend
- Avoid taking trades during low volatility or sideways markets
- Prefer signals that align with higher timeframe trends
Stop Loss
- Set stop loss slightly above recent swing highs for sell trades
- Set stop loss slightly below recent swing lows for buy trades
Take Profit
- Target previous support/resistance levels or pattern completion points
- Close partial positions as price reaches intermediate levels
- Exit early if an opposite pattern forms
Practical Tips
- Use higher timeframe patterns to confirm the general trend
- Do not rely solely on patterns during flat or low-volume markets
- Adjust pattern display settings based on personal strategy
- Focus on high-probability setups rather than every pattern signal
James 16 Patterns + Trend Magic MT4 Ultra-Fast Scalping Strategy
This ultra-fast scalping strategy combines the James 16 Patterns MT4 Indicator and the Trend Magic MT4 Indicator.
The James 16 Patterns Indicator shows bullish signals in green and bearish signals in red.
The Trend Magic confirms the trend direction: a blue line indicates a bullish trend, while a red line indicates a bearish trend.
This combination allows traders to scalp a few pips quickly with high-probability entries.
This strategy is designed for M1 and M5 charts and is ideal for traders looking for quick trades targeting 3–8 pips per trade.
Buy Entry Rules
- Ensure the Trend Magic line is blue, indicating a bullish trend.
- Wait for the James 16 Patterns Indicator to show a green bullish signal.
- Enter a buy trade at the close of the signal candle.
- Set a tight stop loss 5–8 pips below the entry.
- Take profit after 3–8 pips or exit when the Trend Magic line turns red or James 16 Patterns turns red.
Sell Entry Rules
- Ensure the Trend Magic line is red, indicating a bearish trend.
- Wait for the James 16 Patterns Indicator to show a red bearish signal.
- Enter a sell trade at the close of the signal candle.
- Set a tight stop loss 5–8 pips above the entry.
- Take profit after 3–8 pips or exit when the Trend Magic line turns blue or James 16 Patterns turns green.
Advantages
- Ultra-fast scalping for quick profits.
- Combines clear pattern signals with trend confirmation.
- Low exposure due to tight stop losses.
- Suitable for high-frequency traders targeting small pip gains.
Drawbacks
- Requires constant monitoring due to ultra-short timeframes.
- Less effective in ranging or choppy markets.
- Frequent trades can increase spread and commission costs.
- Precision is critical; small errors can wipe out gains quickly.
Example Case Study 1: EUR/USD (M1)
The Trend Magic line is blue, indicating a bullish trend.
James 16 Patterns Indicator shows a green bullish signal.
Buy trade entered at 1.1050, stop loss 1.1045, take profit 1.1057.
Trade captures 7 pips within a few minutes.
Example Case Study 2: GBP/JPY (M5)
The Trend Magic line is red, indicating a bearish trend.
James 16 Patterns Indicator shows a red bearish signal.
Sell trade entered at 151.250, stop loss 151.258, take profit 151.243.
Trade captures 7 pips quickly.
Scalping Tips
- Trade in the direction of the Trend Magic line to increase win probability.
- Use low-spread currency pairs to minimize costs for ultra-short trades.
- Avoid trading during major news events to reduce the risk of spikes.
- Focus on fast execution and stick to tight stop loss and take profit levels.
- Combine with support/resistance levels for additional confirmation on entries.
Download Now
Download the “James16-Patterns-Indicator.mq4” indicator for Metatrader 4
FAQ
How does the indicator identify bullish and bearish patterns?
The James 16 Patterns Indicator scans recent price action to detect formations that indicate potential trend continuation or reversal.
Green patterns signal bullish setups, while red patterns signal bearish setups.
Can this indicator be used for scalping as well as swing trading?
Yes. It works on all timeframes, allowing traders to use it for quick scalping trades or longer intraday and swing positions.
Does it require additional indicators to trade effectively?
No. It can be used standalone, but combining it with trend direction tools or support/resistance levels may improve trade accuracy.
Are the pattern signals reliable on low-volume markets?
Signals can be less reliable during low liquidity or quiet sessions, so it’s best to focus on active trading hours for higher probability setups.
Summary
The James 16 Patterns Indicator for MT4 is a comprehensive tool for spotting important price action patterns.
It highlights bullish, bearish, and neutral formations, giving traders a clear view of potential market direction.
By combining its signals with trend analysis or support/resistance levels, traders can make more informed entries and exits.
Overall, the James 16 Patterns Indicator simplifies price action trading by visually presenting actionable patterns, helping traders identify opportunities and manage trades with confidence.
