The Pattern Recognition Master Indicator scans the chart for common candlestick formations and marks them as they appear:
Letters are displayed directly on the candlestick to denote the pattern.
A reference table in the top-left corner of the chart shows what each letter stands for.
For example, S_E represents a bearish Engulfing Pattern, while L_E represents a bullish engulfing pattern.
This allows traders to quickly see which candlestick patterns are forming without manually analyzing each bar.
How to Use the Pattern Recognition Master Indicator
Entry Signals
Identify the candlestick pattern on the chart, such as bullish or bearish engulfing, hammer, or shooting star.
Use the pattern as a potential entry signal only when it aligns with the overall market trend. For example, entering a buy on a bullish engulfing pattern is safer when the market is in an uptrend.
Trade Confirmation
Do not rely solely on the indicator for trading decisions.
Combine candlestick patterns with other technical analysis tools, such as Support And Resistance levels, trendlines, and other indicators.
Confirm the trade direction using the prevailing trend or market structure.
Risk Management
Always place stop losses at recent swing highs or lows to limit potential losses.
Take profit can be set according to risk-reward ratio or near key support/resistance levels.
Advantages of the Pattern Recognition Master Indicator
Automatically identifies candlestick patterns on live charts.
Provides a reference table for easy interpretation of pattern letters.
Works across all timeframes and trading styles.
Helps reduce the risk of missing key reversal or continuation patterns.
Useful for both beginner and experienced traders.
Limitations
Patterns may give false signals if used in isolation without trend or market context.
Trading purely based on candlestick patterns can be risky during high volatility or ranging markets.
Who is the Pattern Recognition Master Indicator Best For?
This indicator is suitable for any Forex trader who uses candlestick patterns as part of their trading strategy:
Beginners learning to identify patterns in real-time.
Experienced traders who want to automate pattern detection and save time.
Traders across all timeframes and trading styles, including Scalping, swing trading, and intraday trading.
Conclusion
The Pattern Recognition Master Indicator is a practical tool that simplifies candlestick analysis on live Forex charts. By automatically identifying patterns and displaying them clearly, it helps traders make faster, more informed trading decisions. Combining it with other technical tools increases reliability and improves trade outcomes.
