Pattern Recognition Indicator MT5
Platform: MT5 Type: Pattern Last update: September 5, 2026The Pattern Recognition Indicator for MT5 automatically detects and highlights candlestick patterns on your chart as soon as they form.
It places specific labels above or below the candles to mark each pattern.
Example chart:
How to use the Pattern Recognition Indicator for MT5?
The indicator is capable of recognizing several candlestick patterns, including:
- shooting star
- bullish & bearish hammer
- evening & morning star
- evening & morning doji star
- dark cloud
- piercing line
- bullish & bearish engulfing
Once a pattern forms, the corresponding candle gets tagged with a short label placed above or below it – e.g. HMR for Hammer, SS for Shooting Star and so on.
A key explaining all the labels sits in the top-left corner of the chart.
Getting the most out of it
The indicator works best in the hands of someone who understands what these patterns actually imply about market structure, not just what they’re called.
Knowing how a hammer or an engulfing pattern typically plays out helps you judge whether a given signal is worth acting on.
Pairing it with another technical tool, rather than relying on pattern labels alone, also helps filter out weaker setups.
Trading with the trend
As a general rule, it’s worth to trade patterns in the direction of the dominant trend. Avoid acting on bearish patterns during a strong uptrend and vice versa.
Adding a 50-period EMA to the chart gives you a simple way to define that trend before you start looking at pattern signals.
Example: good trade
The EUR/USD H4 chart above shows a clear bearish trend. Sell setups carry better odds than buy setups.
One of the strongest patterns to watch for here is the bearish engulfing pattern.
In this example, two large-bodied bearish engulfing candles formed and closed, each acting as a solid short trigger. Both trades worked out profitably, largely because the pattern aligned with the dominant trend rather than fighting it.
Example: bad trade
The same chart also shows a few bullish hammer patterns forming, but none of them led to a profitable long trade.
This reinforces a simple point: counter-trend patterns are far less reliable. Unless you have a specific reason to fade the trend, it’s generally better to trade with it.
Summary
The real value of the Pattern Recognition Indicator for MT5 isn’t spotting the pattern, it’s knowing what to do once it’s spotted.
A labeled candle is just a starting point.
The trade examples above show how the same pattern type can produce very different outcomes depending on the conditions around it. Treat the labels as a prompt to dig deeper, not a signal to act on immediately.
