Candlestick Pattern Indicator for MT4

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The most comprehensive candlestick pattern indicator for MetaTrader 4

So when it comes to candlestick patterns and price action, there is no definitive way to measure the accuracy, reliability and performance of each candlestick reversal pattern. That really frustrates me because there are so many candlestick patterns which in theory makes a lot of sense – but no one has ever created a definitive study on how effective they are and to what degree they are effective (sure, that is a nice reversal pattern and price has reversed – but by how many pips?)

With this frustration boiling in me, I decided to create the definitive study into candlestick patterns and price action effectiveness. This required me, of course, to create what I can say with a high degree of confidence – the most comprehensive and accurate price action and candlestick pattern indicator.

What is wrong with the candlestick pattern indicators out there?

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And what makes this one different?

Long story short: They suck.

Honestly, there are so many price action candlestick pattern indicators out there that give you so many terrible signals. Just because one candlestick is bigger than the other, doesn’t make it an engulfing candle dude.. *rolls eyes*. The same way just because you see a doji, you shouldn’t start screaming a “GRAVESTONE DOJI” alert *rolls eyes even further back*.

The problem with many of these indicators is that they don’t factor in the importance of the nuances when it comes to determining candlestick patterns. For example, a candlestick reversal pattern should usually only come after a sustained period of rise in price (for a bearish reversal) or a sustained period of drop in price (for a bullish reversal), right? Don’t show me a candlestick reversal pattern when price has been flat for the past 30 bars – it means nothing and even worse, can be detrimental if we acted on it.

These are 2 of the “top” candlestick pattern indicators out there. Look at the number of false and bad candlestick pattern signals they are giving out.

Bad Example #1:

In the example below, we can see that there is literally a candlestick pattern every 3 candles. Imagine trading every single one of these candlestick patterns – your account would be blown up faster than Usain Bolt’s 100m record.

Bad example of candlestick pattern indicators out there
A bad example of how many MT4 candlestick pattern indicators out there give low quality signals

Bad Example #2:

In this example below, on the same chart, we have the number 2 top-rated candlestick pattern indicator out there. It filters a bit more of the candlestick patterns out there but still leads to many questionable candlestick patterns – especially the shooting star candlestick patterns towards the right of the chart. Imagine trading every single one of those shooting star formations – you’ll definitely be seeing.. stars.. (ha-ha).

Bad examples of candlestick pattern indicator giving low quality signals
This candlestick indicator, although slightly better, is still terrible at filtering candlestick patterns.

As seen in the above 2 examples – quantity does not mean quality. These candlestick patterns are just on one forex pair – AUD/USD. If you multiply this across 30+ tradeable forex pairs, you’ll be trading 300 different positions. 

The trick, my friend, is in the filtering. 

There are enough currency pairs out there such that even if you received one good quality candlestick pattern signal a day on each pair, that’s over 30 good trading signals. Here’s how we filter the perfect candlestick pattern with our indicator.

Good Example #1:

Bearish Gravestone Doji Candlestick Reversal Pattern
Good example of how we filter out only the best candlestick reversal patterns.

As you can see from the above example, applying something like a bullish/bearish reversal condition can filter out a lot of bad and false candlestick reversal patterns. We will touch on this in the next section.

What makes this indicator different?

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It better be good!

I’m glad you asked! (even though I know you didn’t). So when building this indicator, there are many things I took into consideration to determine how I can properly identify candlesticks (and from there, properly assess their reliability, accuracy and performance). Here are the variables that can be edited along with an explanation of why they are included.

Bullish / Bearish Reversal Condition

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Defining the conditions that leads up to a candlestick reversal pattern.

Now, finding a bearish engulfing candlestick pattern when price is in the middle of a range is very different than finding a bearish engulfing candle when price is at an all-time high – right?

So this variable allows you to determine what the condition has to be leading up to the reversal. You will be able to adjust:

  • Number of bars before the candlestick reversal pattern
  • Total distance in pips travelled by these number of bars in the form of ATR
Why do we use ATR? 
Because ATR means Average True Range which is the most accurate representation of the volatility of price during a period of time. During really volatile times, ATR is larger and that more accurately defines what a big “move” is before a candlestick reversal. This is better than using a standard “X amount of pips” as during different sessions (and across different currency pairs), 50 pips might seem like a big drop on EUR/USD but it is nothing on GBP/CAD.
 
So, what values do we recommend for this? Let’s look at a couple of examples below.

Candlesticks: 30 | ATR Multiplier: 5

If you’re looking for basic reversals, this would be the most ideal setting to use. 30 candlesticks would give you just about enough distance and is not too short (who wants to play a reversal after 5 candlesticks?) and not too long (300 candlestick reversal?). An ATR Multiplier of 5 means that the total distance travelled by these 30 candlesticks need to be at least ATR*5. So if ATR value at that point of time is 10, then it needs to be 50 pips.

Candlesticks: 100 | ATR Multiplier: 10

If you’re looking for major reversals, this would be an ideal setting to use. 100 bars before the candlestick pattern with an ATR Multiplier of 10 usually means that there is a sustained period of drop/rise which sets the stage perfectly for a candlestick reversal pattern.

1 Candlestick Reversal Patterns

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How complex can they get..?

Most people think that all candlesticks are the same – but that is not true. We need to properly define a candlestick and that is done through a meticulous process of defining every single element in the candlestick.

ATR Multiplier of candle:

First and foremost – yes you guessed right, we need to define what is the minimum height of this candle in the form of ATR. This is once again because just because the body of a candle is at the top half of the candle, doesn’t make it a hammer reversal pattern. If it was a super tiny candle, would you really consider it a proper candlestick reversal?

See this example below where some (not going to mention names) candlestick indicators show this as a valid hammer reversal pattern.. ridiculous right?!

Bad Example #1 for Bullish Hammer Reversals:

In the picture below, you can see that the bullish hammer reversals are not effective because some of them are just way too small compared to the prevailing move of the market. 

Imagine this: if you have a massive huge nail that you need to hammer – would you use a tiny hammer or a large hammer? A large hammer, of course! So to properly define this, we need to consider to apply an ATR multiplier to the candlestick pattern otherwise you’ll get tiny useless hammer patterns like below:

Bad example of bullish hammer candlestick reversal
Bad example of bullish hammer candlestick reversals that one of the top candlestick indicators give.

Now you can see that it’s important to consider the size of the candlestick reversal. On top of that, you have to consider if the prevailing drop is big enough for there to be a reversal.

Bad Example #2 for Bullish Hammer Reversals:

In this next example, there are a few decent examples of a bullish candlestick reversal, but for every 1 good example, there are 3 bad examples. The problem is similar to the first example – there isn’t an ATR multiplier for each candle nor is there a prevailing bullish reversal condition which is why you will notice some bullish hammer reversal patterns appear at the top of a move.

Bad hammer reversal candlestick patterns
Without ATR applied to the size of the candlestick pattern, most candlestick patterns would be too small to be of any decent effect.

If you look at the bottom corner of the example #2 above, you will notice there are a lot of bullish hammer candlestick patterns – the only problem is that they are way too small to be considered decent hammer patterns.

So at this point, you should be thinking: How would the ATR candle multiplier help in this case? Let’s explore this along with some other parameters to fine-tune our bullish hammer candlestick reversal pattern below.

The Bullish Hammer Candlestick Reversal Pattern

First and foremost, let’s understand how the perfect bullish hammer candlestick pattern looks like:

Bullish Hammer Candlestick Pattern
The perfect bullish hammer candlestick pattern.

Now that we have defined the perfect bullish hammer candlestick pattern, let’s start to breakdown all the parameters and calculations needed to identify it on a chart.

ATR Multiplier for Bullish Hammer Candlestick Pattern

So, by default, we have this setting for our ATR Multiplier:

  • ATR Period = 15
  • ATR Multiplier = 1

What does this mean? We take the past 15 bars as a gauge for our ATR Multiplier so that it’s sensitive enough without being overly sensitive to the recent move.

An ATR Multiplier of 1 means that the bullish hammer candlestick pattern that occurs would be at least an average size of the recent past 15 candles.

Percentage of the body relative to the entire candlestick body

Next, we need to determine how big the body is in relation to the entire candlestick. This is important because the head of the hammer needs to be of a decent size. If it’s too tiny, it will miss the nail it wants to hit (just imagine this). If it’s too big, it’s more like a baseball bat instead of a hammer.

  • Minimum candlestick body size: 20%
  • Maximum candlestick body size: 40%
  • Top 40% of candlestick

Notice that this usually happens at the bottom of a downtrend signalling that price might bounce? So in this case, we have to pick “bullish reversal” as the condition of the candlestick. It’s worth noting that the body of the candle (in relation to the entire candle) needs to be a minimum of 20% and maximum of 40% like the hanging man we discussed earlier.

So these are the values you use:

  • Condition: Bullish Reversal
  • Candlestick pattern: bullish (means close is above open, like a bullish green candle)
  • Minimum ATR multiplier of candle: 1.0
  • Minimum candlestick body size: 20%
  • Maximum candlestick body size: 40%
  • Top: 40% of candle
How does this look like after we have set out these parameters?

Hanging Man reversal candlestick pattern (bearish)

This is how a hanging man reversal candlestick pattern looks like:

So we know that this happens after a rise (so we choose the bearish reversal condition we discussed earlier).

Now, ideally, the bigger a candlestick pattern, the better it performs. So we’re looking for this candlestick pattern to have a minimum ATR of 1.0.

The candle needs to ideally be a bearish candle (you know, red bearish candle vs green bullish candle). The body of the candlestick should be at a minimum 20% of the body and at most 40% (not more than half of the candle). This body needs to be in the top 40% of the candle to form a really nice hammer candlestick pattern.

So these are the values you use:

  • Condition: Bearish Reversal
  • Candlestick pattern: bearish (means close is below open, like a bearish red candle)
  • Minimum ATR multiplier of candle: 1.0
  • Minimum candlestick body size: 20%
  • Maximum candlestick body size: 40%
  • Top: 40% of candle
How does this look like after we have set out these parameters?

Notice that this hanging man candlestick pattern is at the top of a nice bullish trend forecasting the perfect reversal? This is only made possible because we have defined the “bearish reversal condition” mentioned earlier, where we only scan for such bearish reversal candlestick patterns after a decent uptrend.

Notice that this usually happens at the bottom of a downtrend signalling that price might bounce? So in this case, we have to pick “bullish reversal” as the condition of the candlestick. It’s worth noting that the body of the candle (in relation to the entire candle) needs to be a minimum of 20% and maximum of 40% like the hanging man we discussed earlier.

So these are the values you use:

  • Condition: Bullish Reversal
  • Candlestick pattern: bullish (means close is above open, like a bullish green candle)
  • Minimum ATR multiplier of candle: 1.0
  • Minimum candlestick body size: 20%
  • Maximum candlestick body size: 40%
  • Top: 40% of candle
How does this look like after we have set out these parameters?

Super awesome, right?!

Once again, compared to other indicators out there in the market, you will probably get many bullish hammer candlestick patterns such as the one below because they are not able to properly define the crucial parameters of not only a candle, but the variables that lead up to a candle.

The variables you can edit here will form the basis of all the other 1-candlestick reversal patterns. Here are some of the other 1 candlestick reversal patterns you can consider:

  • Bullish reversal 1 candlestick patterns
    • Hammer (bullish/bearish candle)
    • Inverter Hammer (bullish/bearish candle)
    • Dragonfly Doji
    • Long Legged Doji
  • Bearish reversal 1 candlestick patterns
    • Hanging Man (bullish/bearish candle)
    • Shooting Star (bullish/bearish candle)
    • Gravestone Doji
    • Long Legged Doji

2 Candlestick Reversal Patterns

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Yes, they get more complex.

Now that we have dived deep into what 1 candlestick reversal patterns are, the next thing we should do is to look at 2 candlesticks reversal patterns. These candlestick reversal patterns are a bit trickier as it’s not just about the single candle that is being formed, but how a very specific combination of both (with very specific candlestick requirements) would trigger a nice reversal pattern.

The bullish/bearish reversal conditions we mentioned earlier remain the same. Now we look at some of the extra fields we have to play around with (rubs hands with glee).

The Bullish Engulfing Candlestick Pattern

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One of the strongest reversal patterns - if done correctly.

So, one of my favourite reversal patterns is the engulfing candle. Lets first look at the bullish engulfing candle. Here’s a model picture of how a bullish engulfing candle looks like:

The strict definition of this is that the entire body of the second candle needs to cover the first candle. In forex, this is trickier because there are fewer price gaps that would lead to a true bullish/bearish engulfing candle as seen in the equity/indices markets. So how we adjust this indicator to cater to the forex market is through the first candle having to be a fairly strong candle with almost 0 wick/shadow. The second candle (the engulfing candle) will cover the entire body of the candle and in the case of a bullish engulfing candle, we get it to cover the high of candle 1 too (this makes the engulfing effect stronger).

As mentioned in the 1 candlestick reversal patterns above, we will require the bullish engulfing candlestick pattern to be at the bottom of a downtrend (hence the condition we use is the bullish reversal condition). The reason for this is because this is essentially a reversal pattern – meaning it works best following a sustained drop.

Now, even for a supposedly simple 2 candlestick reversal pattern such as the Bullsuh engulfing pattern, it seems tremendously complex, right? So, using this definition strictly, if we look at what other candlestick indicators show, it is terrible. Here are some examples of what happens when you don’t consider all these important factors like many of the other candlestick indicators out there:

These look terrible, right?

Now, why is this so? Well, it’s simple – let me break down the thought process for you on what really goes behind a good bullish engulfing candlestick pattern.

We can’t just call any random 2nd candle which has its open and close bigger than the previous 1st candle as a bullish engulfing candle. Why? It’s because engulfing candles are supposed to be strong. Not teeny weeny tiny candles. So by that definition, we need to ensure that they are of a certain minimum size. So, how do we determine this size? Well, through the best adaptive size indicator out there: the Average True Range (ATR). 

Huh? What does this mean?

That means I would put in a requirement that the 2nd candle (the engulfing candle) needs to be bigger than a minimum X*ATR value (with X being a random variable. In this case, we can use 1 so that it’s the size of a normal candle).

Now, what else is required? An engulfing candle should ideally not have too much “wick/shadow”. The entire candlestick should ideally be comprised of 90% body. So I will add in a requirement here that the body should be between 90% – 100% of the entire candle. So this parameter ensures that the engulfing candles I have are nice solid big ones with little wicks/shadows (which are actually signs of indecision).

Okay, so we’ve defined the minimum size of the bullish engulfing candle along with it requiring a nice solid body – what else is needed? 

The next thing needed is we need to define the 1st candle – the “engulfed” candle. This can’t just be any random tiny candle. So what if we have a nice big engulfing candle but the candle it engulfed is a tiny insignificant candle – right? So in this case, we will also similarly define the engulfed candle as a decent-sized candle with a total height of at least Y*ATR. On top of that, the body should comprise at least 90% – 100% of the entire candle.

What is the result of this? You get nice awesome bullish engulfing candles such as this:

If we wish to increase the strength of these bullish engulfing candles, we can even have the option where the close of the 2nd candle (the engulfing candle) is not only higher than the open of the 1st candle (the engulfed), but also higher than the highest point (high) of the 1st candle such that it totally 100% engulfs it. This is how it would then look like:

Indicator settings to detect the perfect bullish engulfing candle pattern:

  • Reversal condition: Bullish
  • Minimum size of 1st candlestick body: 80%
  • Maximum size of 1st candlestick body: 100%
  • Minimum size of 1st candlestick body based on ATR multiplier: 1
  • 1st candlestick type: Bearish
  • Body position in percentage from top: 0 (not relevant)
  • Body position in percentage from bottom: 0 (not relevant)
  • Use 2nd candle: 1 (yes)
  • Minimum size of 2nd candlestick body: 80%
  • Maximum size of 2nd candlestick body: 100%
  • Minimum size of 1st candlestick body based on ATR multiplier: 1
  • 2nd candlestick type: Bullish
  • Body position in percentage from top/bottom: 0 (not relevant)
  • Candle 2’s High > Candle 1’s High: 1 (true)
  • Candle 2’s Low < Candle 1’s Low: 0 (false)
  • Candle 2’s Close > Candle 1’s High: 1 (true)
  • Candle 2’s Close < Candle 1’s Low: 0 (false)
  • Candle 2’s Close < Candle 1’s Open: 0 (false)
  • Candle 2’s Close > Candle 1’s Open: 1 (true)
  • Candle 2’s Close > Candle 1’s Close: 1 (true)
  • Candle 2’s Close < Candle 1’s Close: 0 (false)

We actually had to create a special excel sheet .csv for our indicator to read from because we exceeded the number of parameters an MT4 indicator is able to input. That is how detailed and intense our price action candlestick pattern indicator is!

Now that you know how much thinking goes into crafting a nice double candlestick reversal pattern, let’s take a look at some of the other trickier (THERE ARE TRICKIER ONES?) double candlestick patterns which our candlestick pattern indicator is capable of detecting.

The Tweezer Top Candlestick Reversal Pattern

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An extremely strong reversal pattern - but tremendously complex.

So, the tweezer top reversal pattern is honestly, in my personal opinion, one of the best reversal patterns. However, the construction of it is slightly trickier because you need to detect the proximity of the high, low, close and open of candlestick 1 and candlestick 2. Here’s a picture of the perfect tweezer top candlestick pattern (meant for bearish reversals).

So you can see that it’s not only about whether a candlestick’s open or close is higher or lower than the other but rather, we need to measure the proximity of these to accurately create a tweezer top reversal pattern. This is because the high of candle 1 and candle 2 of the tweezer tops are usually within really close proximity. Along with that, candle 1’s open is usually very close to candle 2’s close. Candle 1’s close is also usually very close to candle 2’s open. And lastly, the body of the candles need to be about 30% of the entire candle and positioned in the bottom 40% of the entire candlestick. They look simple – but their calculations are crazy tough, right? Haha.

So what are the calculations that go into producing the perfect tweezer top pattern? Ready to get your brain fried? Let’s go!

Indicator settings to detect the perfect bearish tweezer top candlestick reversal pattern:

  • Reversal condition: Bearish
  • Minimum size of 1st candlestick body: 30%
  • Maximum size of 1st candlestick body: 40%
  • Minimum size of 1st candlestick body based on ATR multiplier: 1
  • 1st candlestick type: Bullish
  • Body position in percentage from top: 0 (not relevant)
  • Body position in percentage from bottom: 50 (this means that the body has to be in the bottom 50% of the candle)
  • Use 2nd candle: 1 (yes)
  • Minimum size of 2nd candlestick body: 30%
  • Maximum size of 2nd candlestick body: 40%
  • Minimum size of 1st candlestick body based on ATR multiplier: 1
  • 2nd candlestick type: Bearish
  • Body position in percentage from top: 0 (not relevant)
  • Body position in percentage from bottom: 50 (this means that the body has to be in the bottom 50% of the candle)
  • Strictly speaking, the highs and lows don’t matter so much here so we’re going to turn everything to false.
    • Candle 2’s High > Candle 1’s High: 0 (false)
    • Candle 2’s Low < Candle 1’s Low: 0 (false)
    • Candle 2’s Close > Candle 1’s High: 0 (false)
    • Candle 2’s Close < Candle 1’s Low: 0 (false)
    • Candle 2’s Close < Candle 1’s Open: 0 (false)
    • Candle 2’s Close > Candle 1’s Open: 0 (false)
    • Candle 2’s Close > Candle 1’s Close: 0 (false)
    • Candle 2’s Close < Candle 1’s Close: 0 (false)
  • The ones we will focus more on are the proximity of the candlesticks’ open/close/high/low
    • First, to ensure there’s strong proximity, we will use a multiplier of the ATR value. In this case, I would usually use 0.1 as the value of X.
    • Candle 2’s open within 0.1*ATR of candle 1’s close
    • Candle 2’s close within 0.1*ATR of candle 1’s open
    • Candle 2’s low within 0.1*ATR of candle 1’s low
    • Candle 2’s high within 0.1*ATR of candle 1’s high

Now, with these amount of variables that go into creating the perfect tweezer top reversals, what can we expect from our indicator? Here are some of the perfect tweezer top reversals we found:

As I mentioned earlier, tweezer top reversal patterns are some of the best reversal patterns and reliable ones in trading. The problem with many of the other candlestick pattern indicators out there is that it doesn’t take into consideration all these variables before it identifies a tweezer top or tweezer bottom.

What are some of the other 2 candlestick reversal patterns you can consider? Here is a list that our indicator includes. Each of them is meticulously calculated to ensure that each time you see a setup on your MT4, it is a valid setup according to the strictest standards.

2 Candlestick Bullish Reversal Patterns

  • Bullish engulfing candle
  • Tweezer bottom 
  • Spinning bottoms

2 Candlestick Bearish Reversal Patterns

  • Bearish engulfing candle
  • Tweezer top
  • Spinning tops

3 Candlestick Reversal Patterns

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The most complex candlestick patterns.

Now, 3 candlestick reversal patterns are slightly trickier. You need to well, define 3 candlesticks and that is a real pain. But don’t worry, let me explain to you how we are able to use this indicator to capture even the most complex of candlestick patterns. 

What are some of the most complex candlestick patterns? I personally think these are quite tricky:

3 Candlesticks Bearish Reversal Patterns

  • Evening Star
  • 3 Black Crows
  • 3 Inside Down

3 Candlesticks bullish reversal patterns

  • Morning Star
  • 3 White Soldiers
  • 3 Inside Up

Now let’s go through an example on how we created the parameters to define the evening star bearish reversal pattern. Do note that candlestick patterns in forex are slightly different than candlestick patterns in stocks and indices where the latter has a lot more price gaps. So we have taken all this into considerations for the different asset classes.

Evening Star Candlestick Reversal Pattern

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One of the strongest 3 candlestick reversal patterns in the galaxy (ha-ha).

The evening star candlestick reversal pattern is one of my personal favourite – it also happens to be one of the trickiest ones as we need to factor in not only the size of all 3 candlesticks, but the ratio of body-to-wick of each. If done correctly, we identify tremendously strong and high probability reversal candlestick patterns to trade from.

Anyway, as usual, we take a look at what the perfect evening star candlestick reversal pattern looks like before we dive into the exact indicator settings on how to get it.

Indicator settings to detect the perfect evening star reversal candlestick pattern:

  • Reversal condition: Bearish
  • Minimum size of 1st candlestick body: 80%
  • Maximum size of 1st candlestick body: 100%
  • Minimum size of 1st candlestick body based on ATR multiplier: 1
  • 1st candlestick type: Bullish
  • Body position in percentage from top: 0 (not relevant)
  • Body position in percentage from bottom: 0 (not relevant)
  • Use 2nd candle: 1 (yes)
    This is our little evening star.
  • Minimum size of 2nd candlestick body: 0%
  • Maximum size of 2nd candlestick body: 10%
    It needs to have a really tiny body
  • Minimum size of 1st candlestick body based on ATR multiplier: 0.1
    The smaller the candlestick body, the better.
  • 2nd candlestick type: Bearish
    It can be bullish/bearish, either is fine. But in this example, we use a bearish evening star candle. We can create another filter just for it to have a bullish candlestick.
  • Body position in percentage from top: 60
    This means the lower limit of the candlestick pattern is 60% from the top.
  • Body position in percentage from bottom: 60
    This means the upper limit of the candlestick pattern is 60% from the bottom
    Essentially this means that the candlestick body is within the middle 40-60% of the candlestick.
  • Candle 2’s High > Candle 1’s High: 0 (true)
    This is not necessary in an evening star pattern.
  • Candle 2’s Low < Candle 1’s Low: 0 (false)
  • Candle 2’s Low > Candle 1’s Low: 1 (true)
  • Candle 2’s Close > Candle 1’s High: 0 (true)
  • Candle 2’s Close < Candle 1’s Low: 0 (false)
  • Candle 2’s Close < Candle 1’s Open: 0 (false)
  • Candle 2’s Close > Candle 1’s Open: 1 (true)
  • Candle 2’s Close > Candle 1’s Close: 0 (false)
  • Candle 2’s Close < Candle 1’s Close: 1 (true)
    Our evening star close has to be lower than candle 1’s close.
  • Candle 2’s Open > Candle 1’s Close
  • Candle 2’s Open < Candle 1’s Close

Now that we’ve defined how the perfect evening star reversal pattern should look like, here are some pictures of the reversal patterns we have found with our MT4 candlestick pattern indicator.

In contract, many of the other candlestick pattern indicators out there give you absolute trash as they don’t consider all the various important factors that lead up to creating the perfect evening star reversal pattern. Here are some example of what I mean:

As you can see, it’s not just about the 3 candles that form the evening star reversal pattern (or any 3 candlestick reversal pattern), rather, you have to place an equal amount of important to the leading up to the candlestick pattern (bullish/bearish condition), the size of each of the 3 candlesticks (candle 1,2,3) in relation to the bullish/bearish condition – which is why we prefer to use ATR versus a fixed pip amount. Then we need to consider the amount of wick/shadow each candlestick should have. 

Sounds tough? It’s because it is. I’ve put a lot of effort and brainstorming into every single one of these factors and yes – there are so many factors that I had to make the MT4 indicator read off a csv sheet instead.