Download Price pattern indicator – candlestick pattern indicator script here:
What does the script do?
It’ll mark the price action patterns on the chart like:
- pin bars (shooting stars, hammers)
- evening star
- dark cloud
- bearish engulfing
- morning star
- piercing line
- bullish engulfing
How to install price pattern indicator in Metatrader 4?
First, download indicator.
When you finish downloading files, go to download folder and unpack your indicator.
There will be MQL4 folder.
Now copy files
Go to your Metatrader platform. Click File in the upper menu and select Open data folder. You should see a folder like this:
Can you spot the MQL4 folder? Open it and here you will find folders like:
Go to Indicators folder.
Now go back to your Downloads folder. Open MQL4/indicators folder and copy these two files:
Paste them into Metatrader MQL4/indicators folder
Now it is best to restart the Metatrader4 platform.
You can also click refresh. To do that, go to Navigator, right-click Indicators menu and select Refresh.
Add indicator to the chart
Now it is time to add indicator to the chart. The easiest way is to open navigator, go to Indicators and double click name of inidcator:
Why price action?
Trading with the help of price action is one of the most effective methods to make profits. After all, different types of charts like bar chart, candlestick chart and others were invented first and that was a start of technical analysis.
Based on the price you can find key information about the current market situation and when to open a trade.
A common mistake for beginner traders is to focus on oscillators and ignore price (and yet the oscillators are created based on price!).
Problems with price action – how to spot a formation?
One of the biggest problems with price action is reading the charts and trying to notice the candlestick patterns. There are very obvious candlesticks like pin bars. However, there are many other candlestick patterns that are more difficult to notice like:
- engulfing patterns
- dark clouds
- piercing lines
- and many more
The second thing that makes it difficult to notice a particular price action is the usual routine of the day. Trader analyzes many instruments, switches between time frames. Analyses the situation on the charts, checks the trend lines, support and resistance levels etc. All of this makes it quite easy to overlook some very important price formations.
In such situations scripts like price pattern indicator are most useful.
How to learn how to trade with price action?
The best way to start is to buy book about price action. There are few classic titles which present each price action in detail and explain how to trade them.
The second step is to learn in practice. It’s best to clear the chart from all moving averages, oscillators and other indicators. Leave the chart clean and try to make trading decisions based on price.
As a help you can add candlestick pattern indicator. It will mark on the chart the most important price formations, which you’ll be able to analyze further.