Master Pattern Indicator MT5
Platform: MT5 Type: Pattern Last update: February 8, 2026The Master Pattern Indicator for MT5 is a tool developed by LuxAlgo that recognizes contraction patterns and highlights them on the chart. It also plots expansion lines.
What’s more, the indicator provides liquidity levels, which is helpful for traders looking for take profit and stop loss targets.
Example chart:
How to use the Master Pattern Indicator for MT5?
The contraction phases in the market occur when price forms a lower high and higher low. The Master Pattern indicator makes these compression areas appear as colored rectangles on chart: green for bullish patterns and red for bearish patterns.
When price breaks above the range, it signals a bullish breakout and when it breaks below, it signals a bearish breakout. After the breakout, the Master Pattern draws upper and lower liquidity levels that can act as targets or possible reversal areas. These breakouts often are the start of a strong trend.
Example trade
Take a look at the above EUR/USD H1 trade.
On the right side, you can see an impressive upward impulse after the price broke from the green rectangle and then broke a liquidity level shown as a dotted line.
