What are pattern indicators for Forex?


Staff member
Pattern indicators are a category of technical indicators that automate the identification of patterns in the Forex market. Many traders mistakenly think that the term "patterns" refers only to candlestick analysis patterns (candlestick indicators). In fact, pattern indicators also identify technical analysis patterns, harmonic Gartley patterns and Price Action patterns.

Pattern indicators are not intended to indicate an entry point into the market. They are a tool for in-depth analysis of price movements of the Forex market, promptly pointing out to the trader the presence on the chart of a particular pattern and providing detailed information to make a trading decision.
The most difficult thing in the market candlestick analysis is to remember all these Forex chart patterns. There are probably hundreds of them. About the main ones below. The first thing you need to know about patterns. It is a combination of several candles. There is no exact number because the complete formation of many patterns can only occur after several dozens of bars have closed. ... Forex Pattern Indicator. It is almost impossible for a beginner to memorize all or at least most of the patterns at once, especially. And even if you remember what they should look like in theory, on the chart you are likely to get confused. These patterns can hardly be called a double bottom, even at a stretch. How to use the pattern indicator in trading. If we rely only on PricePatterns readings, about 60-65% of the patterns work on H4. But it doesn't mean that the indicator replaces the trading strategy. It is possible to work for some time if you add entry filters to the patterns. For example, trade after confirming the patterns. For a Head and Shoulders pattern, the confirmation may be a fixation of the chart behind the broken neck line, for a wedge - a retest of its line after the breakdown. The same method of filtering also applies to other graphical structures. Not a bad ratio of risk and profit + fast working out.