Pattern Recognition Indicator
Pattern Recognition Indicator is a useful forex tool that identifies forex candlestick patterns on your charts as they form. Learn how to use this effective indicator here.
Description
There are too many candlestick patterns in forex. It’s one thing to recognize them in theory and textbooks. But they don’t always look as perfect on live forex charts. If only there was an indicator that helps to identify candlestick patterns on the live charts.
There is. It is the Pattern Recognition indicator for MT5.
It simply tells you what candlestick patterns are on your charts in real-time. It displays these details by placing short names on new candlestick patterns as they form. And on the top left corner of the chart, the indicator shows what each letter stands for in white color. For instance, S_E stands for a bearish engulfing candlestick pattern on the indicator and PrcLn stands for a piercing line candlestick pattern.
How to use the Pattern Recognition Indicator?
The pattern recognition indicator for Metatrader 5 displays candlestick patterns on the forex chart. So, the best way to use the indicator is by knowing how to use the individual candlestick patterns in your forex trading.
It is also important that a trader doesn’t use this indicator in isolation. But instead, combine the indicator with other forex market structures and indicators to get a better idea of the direction of a currency pair.
For instance, a bearish engulfing candlestick pattern, which often signifies a downtrend, may appear in a major uptrend. Entering a sell order in a bullish market trend is very risky, as you would be trading against the trend.
So, to enter a bearish trade after a bearish engulfing candlestick, a trader has to first confirm that the market is on a downtrend. For an ideal situation, other forex trading tools, such as indicators and market structures like resistances and supports, have to confirm the trade. However, this rarely happens in forex, so you have to follow your own trading rules to enter your trades.
Who is the Pattern Recognition Indicator Best For?
Anyone who uses forex candlestick patterns in their trading would find the pattern recognition indicator very useful. The good thing about forex candlestick patterns is that anyone can trade them, irrespective of their trading style or the timeframe they choose. In addition, any forex trader can use forex candlestick patterns in their strategies.