Candle Patterns

Candlestick charts are said to have been developed in the 18th

century by legendary Japanese rice trader Homma Munehisa.
The charts gave Homma and others an overview of open, high,
low, and close market prices over a certain period. This style of
charting is very popular due to the level of ease in reading and
understanding the graphs. Since the 17th century, there has
been a lot of effort to relate chart patterns to the likely future
behavior of a market. This method of charting prices proved to
be particularly interesting, due to the ability to display five
data points instead of one. The Japanese rice traders also
found that the resulting charts would provide a fairly reliable
tool to predict future demand. (As quoted in
http://en.wikipedia.org/wiki/Candlestick_chart).

The Candle Patterns is an indicator recognising chart patterns

formed of Japanese Candlesticks. Gratefull thanks go to the
authors of the following works on which the indicator is based:
Japanese Candlesticks, http://www.candlesticker.com
CandleCode by Victor Likhovidov,
http://www.forexschool.ru
Any trade must not be solely based on a Candle Pattern, but
together with the suggestions of one or more indicators, such
as Moving Averages, Trend Lines, Oscillators or Custom
indicators. For instance, only place a Sell trade when the
Candle Pattern confirms the Bearish trend of a MACD indicator,
or when a reversal pattern touches a moving average line.

Installation
Files placed in folder:
Candle Patterns.mq4

"\experts\indicators"
"The indicator".

Files placed in folder:

"\experts\files"
Candle Patterns.rtd
Introduction to Candle Patterns, info
on usage.
Candle Patterns.csv
Specs on candle patterns. First
column allows the display
of each pattern
to be toggled ON or OFF.
Symbols_.csv
Code of symbols and text for audio
output.

File placed in folder:

speak.dll
CodersGuru of

"\experts\libraries"
Text to speech engine coded by
www.forex-tsd.com for which I

am very gratefull.
Files placed in folder:
gSpeak.mqh
speak.dll.

"\experts\include"
External function definition of

File placed in folder:

"\templates"
candle patterns.tpl
Sets up chart period H1 for
candlesticks and removes all
previous
indicators. Calls up "Candle Patterns" indicator.
Close and then re-start MetaTrader for it to find the new files.

Chart SetUp
Right click on the desired chart and click on "Template",
"candle patterns".
This sets up the chart to display Candlesticks (if it was showing
Bars) and removes any other indicators displayed in subwindows and the main window so as to enable the pattern
labels to be positioned correctly. Also maximise the main
window size as much as possible (example maximum two
vertical charts per monitor). The template sets up the chart to
period H1 and calls up the indicator "Candle Patterns".

Indicator Inputs
Click on "Indicators", cursor down to "Custom" and select
"Candle Patterns".
Under the "Common" tab ensure that "Allow DLL imports" is
tagged.
MaxBarsToScanForPatterns
Set to "0" to display only the
candle patterns detected on
the visible
part of the chart, this is usefull to recognise
the different candle patterns. If the number of bars
input
is above 1 but less than the
number of bars visible, then
the

indicator will display candle patterns detected on the

visible part of the chart. If the input
number is greater
than the number of
visible bars, then patterns will be
scanned up to the value of MaxBarsToScanForPatterns.
Set to "1" to display at bar one a
pattern if detected. If
found the
pattern name is shown at the top left hand side
of the chart. On the top right hand side of the
chart are
displayed six symbols (eg:
R?) with the following
meanings:
Position 0 & 1 - confirmed: If
"ConfirmPattern" is set to
"true" then
these symbols are displayed if the previous
pattern is confirmed:
"Pattern confirmed down".
"Pattern confirmed reversed
down".
"Pattern confirmed reverse up".
"Pattern confirmed up".
Position 2 - pattern type: Reversal,
Continuation or X
(Reversal/Continuation).
Position 3 - current trend: or
Position 4 - possible new direction:

or or Iindecision.
Position 5 - confirmation?: Certain
patterns suggest the
confirmation of
the new direction or the same direction in
the next bar by another pattern. For example a
confirmation of the trend reversal by
a white candlestick,
a large gap up or by
a higher close on the next trading
day
is suggested. If confirmation is suggested to be
waited for by the pattern in the next bar it will
be
indicated with the ? symbol.
ConfirmPattern
proposed by the
pattern to be confirmed.

Set to "true" for the new direction

previous

MoveTextOneRowDown
Set to "true" to move the
horizontal label of the candle
pattern
(and arrow indicators) one row down so as to
"Show OHLC" (or EA name) at the
same time if required.
AudioON
when a pattern has

Set to "true" for audible messages

been detected.

ColorSingleCandle
Used when
"MaxBarsToScanForPatterns" is not set to
"1" to
easier read labels of contiguous patterns made
up
of one candlestick.
AlternateColorSingleCandle

Ditto.

ColorMultiCandles
Used when
"MaxBarsToScanForPatterns" is not set to
"1" to easier read labels of contiguous patterns made up
of two or more candlesticks.
AlternateColorMultiCandles

Ditto.

ColorArrowDown
Used when
"MaxBarsToScanForPatterns" is set to "1" to
indicate current trend, possible new
direction.
ColorArrowUp

Ditto.

ColorText
Used when
"MaxBarsToScanForPatterns" is set to "1" to
display the name of the pattern and the "confirmed"
arrows for the previous pattern.
VerticalTextAdjustX
Used when
"MaxBarsToScanForPatterns" is not set to
"1". It allows movement of the vertical pattern labels
when the font size is changed with
VerticalTextFontSize.
Zoom In | VerticalTextFontSize |
VerticalTextAdjustX
+3

1
+4

10

0
+5 (Max)|
0
VerticalTextFontSize

See "VerticalTextAdjustX".

TrendMA_Period
Averaging period for
calculation to determine the trend.
TrendMA_Shift
Number of bars back from current
bar for comparison of
moving
averages (used in determining the trend).
Have fun, sx Ted.