Three Candle Reversal Indicator
Info
The Three Candle Reversal Indicator is a Indicator for MetaTrader 5 that this indicator identifies potential price reversals based on specific three-candle patterns. Bullish Reversal Pattern:A bullish candlestick is followed by another bullish candlestick whose high does not exceed the high of the previous candle.
Usage
This tool is typically used for enhancing chart analysis and decision making.
Platform
This Indicator works exclusively on MetaTrader 5 (both build 600+ and newer versions).
Setup
Place the downloaded file in MQL5/Indicators folder via File ? Open Data Folder in MetaTrader 5.
How to Install and Use Three Candle Reversal Indicator
1. Installation: Place your file in the MQL/Indicators folder via "Open Data Folder" and restart your terminal.
2. Loading: Find the indicator in the Navigator, drag it onto your chart, and configure the input parameters in the popup window.
3. Customization: Press Ctrl+I to open the indicator list, select your tool, and click "Properties" to change colors, levels, or visual styles.
4. Updating: Replace the old file in the Indicators folder with the new version and restart the platform to apply changes.
Frequently Asked Questions
Q: Why is my indicator not showing? A: Verify the file is in the MQL/Indicators folder, or try right-clicking the "Indicators" tree in the Navigator and clicking "Refresh."
Q: Do custom indicators slow down the platform? A: Too many complex indicators can impact performance; remove unused ones via the "Indicator List" (Ctrl+I).
Q: Can I use MT4 indicators on MT5? A: No, MQL4 and MQL5 are distinct languages; ensure the indicator is compiled specifically for your platform version.
What this tool does
This indicator identifies potential price reversals based on specific three-candle patterns.
Typical Use Case
This Indicator excels in automated trading and technical analysis on MetaTrader 5.
Compatible Platform & Setup
This Indicator works on MetaTrader 5. Place the file in the MQL5/Indicators folder and restart the terminal.
Description & Settings
Related: Candle Timer Countdown for MetaTrader 5 - another powerful indicator for MetaTrader 5 traders.
This indicator identifies potential price reversals based on specific three-candle patterns.Also recommended: Heikin Ashi Candlesticks - similar indicator with strong performance on MetaTrader 5.
Bullish Reversal Pattern:
A bullish candlestick is followed by another bullish candlestick whose high does not exceed the high of the previous candle. This is then followed by a bearish candlestick whose body size is larger than the body size of the preceding bullish candle. This pattern suggests a potential reversal to the buy direction.
Bearish Reversal Pattern:
A bearish candlestick is followed by another bearish candlestick whose low does not exceed the low of the previous candle. This is then followed by a bullish candlestick whose body size is larger than the body size of the preceding bearish candle. This pattern suggests a potential reversal to the sell direction.
Volume and Size Analysis:
In addition to candlestick analysis, the indicator also analyzes tick volumes (increase, decrease) and the size of the first candlestick in the pattern. If the size of the first candlestick exceeds a predefined pip value in the settings, the volume analysis is deactivated.
Candlestick Coloring:
The indicator visually represents these patterns by coloring the candlesticks. Bright colors indicate a candlestick moving in the direction of the trend, while pale colors indicate a candlestick moving against the trend.
This indicator was first implemented in MQL4 and published in 2016.
Figure 1. The Three Candle Reversal Indicator
You may also like: HTF Candles (ICT Power of Three): Higher Timeframe Candles Displayed - excellent alternative for indicator users on MetaTrader 5.
Source Code
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⚠ Limitations & Risk Warning
- This tool is provided for educational and testing purposes only.
- Past performance does not guarantee future results.
- Trading involves substantial risk of loss. Use on a demo account first.
- Results may vary depending on market conditions, broker, and settings.
- We recommend thorough backtesting and forward testing before using with real funds.