Forex for a trader
Candlestick scanner forex

Candlestick scanner forexBest 4 Candlestick Patterns to Scan and Monitor. March 1, 2016 by Lee. If you are scanning for candlestick patterns you will find hundreds every day. The key is to find ones that can make you money. In this article I will cover 4 of the best patterns to scan for and explain their characteristics. According to the great statistics provided by Thomas Bulkowski there are 4 candlestick patterns that seem to stand head and shoulders above the rest in terms of accuracy. Here’s the best ones to scan for and watch. 3 Line Strike Candlestick Pattern. The 3 Line Strike pattern is rarely found. However, it has a very high accuracy rating and should not be ignored if you get an alert or your scan produces one on a stock. The pattern can be for bearish and bullish reversal and the ones which are most effective appear close to a yearly high or low. For a bearish 3 Line Strike you would see 3 consecutive higher closes, followed by a bearish candle that cuts past the whole previous 3 day range. See example below. For a bullish 3 Line Strike pattern, you would see 3 consecutive down closes followed by a bullish candle that shoots past the previous 3 day range.

It’s the same as above, but in reverse. 3 Black Crows Candlestick Pattern. According to the stats at Thomas Bulkowski’s site, this has a hit rate of 78% at bearish reversals. However it is also noted that a breakout of this pattern area can be a strong continuation signal for a trend resuming. So discretion is needed on this one, and is worth further analysis. The 3 Black Crows is identified by 3 long bearish candles which all close near the low of the period. If they occur near a yearly low, and the pattern is broken to the upside in future, they can signal strong reversals. Evening Star Candlestick Pattern. The evening star once again has a high success rate. It is best found somewhere near a yearly low and used as a bullish reversal if broken. The first candle must be a long body candle, and the “star” is a short body candle with a wick above and below. It is similar to a doji in appearance. Abandoned Baby Candlestick Pattern. The abandoned baby has a high strike rate as a bullish chart pattern. It is a small doji candle that is left “abandoned” on its own after a sharp down move.

There will be a decent down day, followed by a gap down but price goes nowhere and create a small Doji candlestick. This is then left abandoned as price gaps up and away the next day. CandleScanner™ is a technical analysis software package created for investors interested in Japanese candle patterns. What makes this application exceptional is that, from the outset, it has been specifically designed for the detection of Japanese candle patterns. It is not just an add-on to an existing analysis platform, but a specialist charting application written by people with an extensive knowledge of the topic of Japanese candlestick patterns. It is suitable for both seasoned traders and complete beginners. The application of CandleScanner™ is extremely versatile, and can be used by a whole spectrum of traders involved in, for example, stock market trading, commodities markets, futures markets or forex. Also, those who are just beginners will find CandleScanner™ a great learning and training tool, where they can learn from real-life data-based examples, rather than just pure text book theory. So, what can the CandleScanner™ application achieve? With the application you can do the following: Quickly scan candlestick charts to find all occurrences of candle patterns Measure the efficiency of patterns, i. e. are they working as you expect them to? Build trading strategies based on candle patterns and simulate transactions (backtesting) CandleScanner™ is highly configurable, meaning that you can adjust it to your specific needs. The algorithms scanning the candlesticks charts have many parameters, which can be set by the user. Also, the visual aspects of the application are highly customizable, enabling everyone to find their desired optimal settings. Candle patterns are very interesting for traders due to their simplicity, elegance and natural interpretation of market sentiment. No matter how markets evolve, "patterns" will appear on the charts.

Essentially, the core premise, and assumption, underlying the application of technical analysis is that such patterns are repetitive and detectable. Technical analysis is widely employed in various financial markets, informing traders about the non-fundamental determinants of price, in other words, "market sentiment." Trying to identify patterns manually, or visually, by merely scanning the charts can be problematic. It can be also be dangerous, as there may be a tendency to see patterns, where there are none, in random data. For example, the very successful trader, William Eckhardt, in the Jack Schwager book “The New Market Wizards”, says that we as human beings don’t look at data neutrally. That is, when the human eye scans a chart it doesn’t give all the data points equal weight. Instead, there is a tendency to focus on certain "outstanding" cases, and to form opinions on the basis of these special cases. That’s why when Eckhardt has an insight based on a chart pattern, he tries to reduce it to an algorithm that can be tested on a computer. In order to investigate whether or not the insight has any value, it should be explicitly formulated, tested and evaluated. In this regard, an objective assessment has a lower chance of being biased, which is crucial when making trading decisions. Finally, recalling Warren Buffet's (alleged) reflection on the markets: " I'd be a bum in the street with a tin cup if the markets were efficient ." CandleScanner can help you exploit such inefficiencies.

Candlestick scanner forex. And while many traders have already discovered that Japanese candlesticks allow them to see chart data more comprehensively at just a glance, the downside remains that there are sometimes too many choices to consider trading. If you trade stocks, it can be a nightmare to narrow down which stocks to look at, and then to spend hours and hours to analyze them each and every trading day. And there’s still one big obstacle that probably affects every trader daily: “How do I find which stocks will give me the best potential profits?” Thank goodness there’s an easy way to find those stocks — and here are a few powerful reasons for including proper candlestick pattern recognition software with a built-in scanner in your daily trading routine. 1. Reduce tedious hours of analysis. Candlestick pattern recognition software and built-in scanner will identify potential trades faster and highlight the patterns clearly on your charts saving you countless hours of analysis time and make reacting to the developing patterns much faster. It’s ideally suited for busy traders no matter how much candlestick experience you have. It’s a tremendous time saver because it does all the hard work for you. 2. Find the best trade candidates. Besides being a great educational tool, it also inspires trading confidence by knowing you are trading amazingly accurate and proper Japanese candlesticks. It’s like trading with a Japanese Rice trader right next to you to sniff out great opportunities and avoid bad ones. No second guessing yourself. You just scan the market to create a watch list in a manner of minutes, and then use this watch list to pick the best chart patterns for the next day trades.

3. Be alerted immediately when one of your favorite candlestick pattern signals appear. Japanese candlestick scanners will filter and analyze for you instantaneously using proprietary filtering technology that alerts you to candlestick patterns you want to follow in real-time – and works in any time frame. Another great time saver! 4. Use it with any market available. You can filter a universe of markets (stocks, indexes, Forex, futures, etc.) in any time frame, whether daily, intraday, or longer term, for any specific candlestick signal. What could be easier and more powerful than your pre-specified candlestick pattern instantly being called to your attention? Using the most powerful filtering capability, a Japanese candlestick scanner acts as a powerful information refinery, alerting traders and investors to only the types of high-payoff, personalized ideas they want to see, filtering out any and all irrelevant information. A Japanese Candlestick scanner is a useful tool for every trader out there that wants to harness the power of Japanese candlestick patterns, giving them consistently good alerts they can rely on. Let it do the dirty work of narrowing down the list of stocks to the ones with the very best chance of success. Let it help you look at the market to gauge whether it’s bullish or bearish. Think of all the time and money you’ll save if you can just focus on the trades instead of all the work that goes on to find them. That’s why a Japanese candlestick scanner will quickly become your secret weapon for profitable trading!

Whether you’re a swing trader or a day trader, you’ll find that a candlestick scanner will focus your efforts on the right stocks at the right time. This is the kind of help that will make a very positive (and profitable!) addition to your trading. Nison Candle Highlighter Nison Candle Scanner Review. Use: MetaTrader 4 (MT4) Indicator. This indicator has all of the important features you need. However, you can't set an individual color for each pattern and alerts don't work in the MT4 version. It's expensive compared to other premium indicators of its kind. However, no other indicators that I've tested come close to the accuracy of this one. The indicator is very straight forward and easy to use. Even the activation process is easy.

You get one key. No need to generate a new key for each trading account. I initially had trouble activating the indicator (more on this later). Everyone involved was very helpful. They even remotely accessed my computer to solve the problem. Nison Candle Scanner Highlighter is easy to use You can enable and disable each candlestick pattern individually It allows you to customize the color of the bullish and bearish labels Select from full labels (Bearish Engulfing) and abbreviated labels (-E) There's no need to contact support or generate a new key for each new trading account There's no limit to the number of accounts you can install this indicator to This is the most accurate candlestick pattern indicator that I have tested. What I Don't Like. You can't customize the label color for the neutral patterns You can't select an separate color for each individual pattern The MetaTrader 4 version does not use alerts (when it easily could) ? Summary: Nison Candle Scanner (NCS) is an indicator for the Ninja Trader, Trade Navigator, and Trade Station platforms. There is also a version of the indicator called the Nison Candle Highlighter (NCH) which is available for the MetaTrader 4 and eSignal platforms. This indicator accurately highlights 28 of Steve Nison's favorite candlestick patterns. NCS has the added ability to scan for patterns and alert you when new patterns develop. Steve Nison is the father of Japanese candlestick trading in the West. We literally have candlesticks on our charting platforms in the West because of the efforts of Steve Nison. I've seen others claiming to be the authority on candlestick trading, but Steve Nison is the real deal. That being said, this indicator highlights candlestick patterns according to Steve's own specifications, so you know that it's accurate. $49 Monthly or $495 for Lifetime Access (NCH)! My Nison Candle Highlighter Nison Candle Scanner Review.

I wasn't originally intending to write a Nison Candle Highlighter or Nison Candle Scanner review. My intention was to write an article about a good free candlestick pattern indicator for MT4. However, after testing a ton of the free indicators, not being satisfied with any of them, looking for more free indicators, finding outdated indicators and trying to updated them, etc., I had hit a brick wall. None of the free indicators that I had tested were good enough to recommend to you guys, so I decided to look at a few premium indicators. That's when I remembered that Steve Nison developed a candlestick pattern indicator a few years back called the Nison Candle Scanner. The MetaTrader 4 version (which I tested) is actually called the Nison Candle Highlighter. Nison Candle Scanner (NCS) is available for Ninja Trader, Trade Navigator, and Trade Station. It highlights candlestick patterns, it can scan for patterns, and it can alert you when new patterns form. Nison Candle Highlighter (NCH) is available for MetaTrader 4 and eSignal and does not have the ability to alert or scan for patterns. On the plus side, the lower functionality of NCH comes with a significantly reduced price tag. I tested the Nison Candle Highlighter for a while. I had it for a month although I only really got to use it for about two weeks (more on that later). It was a huge improvement over the free indicators that I had been testing. The Nison Candle Highlighter (and I assume the Nison Candle Scanner) works exactly the way you would expect it to. I can definitely recommend it, but it's not cheap, so you'll have to decide if you actually need it and if it's worth the price to you. Is Nison Candle Scanner or Nison Candle Highlighter Right for You? NCSNCH Is Perfect for You If: You're learning to trade candlestick patterns You're interested in Steve Nison's methodology for trading candlestick patterns You use the Ninja Trader, Trade Navigator, Trade Station, MetaTrader 4, or eSignal platforms You like to combine candlestick trading with other profitable trading methods You're a visual learner and you think you could benefit from seeing candlestick patterns highlighted on your charts. NCSNCH Is Not for You If: You're already an experienced price action trader You don't use Ninja Trader, Trade Navigator, Trade Station, MetaTrader 4, or eSignal. The price of Nison Candle Highlighter and especially Nison Candle Scanner will prevent many of you from giving this excellent indicator a try. For others, it will be well worth the price to basically have Steve Nison looking over your shoulder, teaching you candlestick patterns.

When I first started using the Top Dog Trading method, I purchased Barry's indicators too. They were very useful in helping me identify good trading setups in the beginning, so I know some of you will find Steve Nison's candlestick pattern software useful as well. What Works and What Would I Change? The Nison Candle Highlighter that I tested worked very well compared to the other indicators that I had tested. However, it's not perfect, so let's go over some of the pros and cons. ?Steve Nison is the father of Japanese candlestick trading in the West, so you know a candlestick pattern indicator that operates based on his own specifications will be accurate. In fact, the Nison Candle Highlighter is far more accurate than any other candlestick pattern indicator that I've tested so far. Not only does it highlight candlestick patterns correctly, it highlights them in the correct context of the market. Click to enlarge image. As you can see from the image above, this indicator highlights bullish reversal patterns after bearish price movements and bearish reversal patterns after bullish price movements. This is key for accuracy when trading candlestick patterns. All of the other candlestick pattern indicators that I tested had trouble highlighting the patterns within the correct context of the market.

Highlight Individual Patterns. The Nison Candle Highlighter and Nison Candle Scanner allow you to select whether or not to highlight each of the 28 candlestick patterns individually. In my tests, I rated these indicators on how accurate they were in highlighting the strong reversal patterns, so this feature was very useful. You can also see a feature to allow alerts in the image above. However, alerts do not work with the MetaTrader 4 and eSignal version of this indicator. In fact, the sales page specifically mentions that, so I'm not sure why the option is there. Maybe it's a vestige of a previous function that is not longer supported. Either way, they could easily add basic MT4 alerts and they don't have them. I was a bit surprised by that, but I never use alerts anyway so it's not a big deal to me. It Could Use More Custom Colors. Another thing that you can see from the image above is that the indicator gives you the ability to set custom colors for long or short candlestick patterns. However, you cannot set a custom color for neutral patterns. Click to enlarge image. In the image above, you can see the neutral patterns highlighted in a yellow color. Since that color can't be changed, those labels could be difficult to read with certain background colors. Another feature that I would like to see (which may not be important to you) is the ability to set a separate custom color for each individual pattern.

Some of the other indicators that I tested were capable of that, and I can see that being useful to some traders. Use Full or Abbreviated Labels. ?Another cool feature of the Nison Candle Highlighter and Nison Candle Scanner is the ability to use either full or abbreviated levels. The image below shows the full labels. Click to enlarge image. ?I really prefer to use the abbreviated labels because it keeps the chart looking less cluttered. However, it's nice to have the option to switch back and forth when you're learning. None of the other indicators that I tested had the ability to choose. Most used full labels. A few used abbreviated labels (although none of the abbreviation systems were as elegant as NCH or NCS). Note: There is a legend for the abbreviations on the sales page for Nison Candle Highlighter and Nison Candle Scanner. You could print out or reference this legend if you ever need help to determine what a certain abbreviation represents. That way you wouldn't need to switch back and forth between full and abbreviated labels. However, I found the abbreviation system to be fairly easy to understand, e. g., - E = bearish engulfing , +E = bullish engulfing , - S = shooting star , +H = hammer , etc. It's Relatively Clean Looking. ?In the image below, all 28 candlestick patterns are enabled (although not all are represented in this section of the chart).

As you can see, even with all of the candlestick patterns enabled, the chart is still relatively clean looking. Of course, it would look completely different if I had selected full labels for this image. Although the chart below may look messy to you, it's a huge improvement over the other indicators that I tested. Click to enlarge image. Many of the other indicators that I tested did not allow for abbreviated labels. Nearly all of the other indicators that I tested crowded the candlestick wick with their labels. As you can imagine, the crowding labels make it difficult to see the absolute highs or lows of the wicks. They also make it difficult to accurately use the measuring tool. Combining Candlestick Patterns and Other Signals. I've been trading candlestick patterns for nearly 6 years. Using candlestick patterns as entry signals is one of my favorite trading techniques. However, I never trade candlestick patterns on their own. Instead, I like to combine them with other trading techniques and look for a confluence of signals.

Click to enlarge image. My favorite way to trade candlesticks is to combine the strong reversal patterns with regular MACD divergence. In the image above, you can see several examples of this. In total, there were 4 candlestick patterns that would have been good entry triggers into these divergence trades. Of those 4, only 1 of them would not have earned at least a 2:1 reward to risk ratio. Support Went Out of Their Way? for Me. As I mentioned earlier, I was only able to test the Nison Candle Highlighter for a couple of weeks instead of a month. That's because I had trouble activating it on my desktop PC. The guys at CandleCharts. com went out of their way to help me get it running. The main tech support guy, Syl, even remotely viewed my PC to make sure that I wasn't making some kind of mistake during installation. He worked on the problem, trying many different things, for about an hour. When he was unable to resolve the issue, he got their programmer to do the same thing. These guys spent hours altogether trying to get this figured out for me. ?Finally, I went out and bought a laptop. I had been meaning to get one anyway. Nison Candle Highlighter installed right away on the new laptop. I think I have an idea of why there was a problem.

I rebuilt my PC a couple of years back and used the same hard drive. When I boot the system, the first screen says that I'm using an American Microtrends motherboard. However, my new motherboard is an ASUS so there's obviously a problem. I've known about this for a while and I've been meaning to fix the issue. Since Nison Candle Highlighter and Nison Candle Scanner are activated per machine, it's possible that this was preventing activation on my desktop PC.? What Are Other People Saying About NCH and NCS? So far in my Nison Candle Highlighter Nison Candle Scanner review, I've explained that Steve Nison's indicator is more accurate than any of the other candlestick pattern indicators that I've tried, which is the most important thing. I've shown you some features that I like about Steve's indicator as well as some ways that I think it could be improved. I also told you about how hard their support staff worked on my behalf. Now that you know what I think about the Nison Candle Highlighter Nison Candle Scanner indicator, let's take a look at what some of Steve's other customers are saying about it. The Best Candlestick Pattern Indicator for MT4. Wouldn’t it be great if there was an indicator that could help you identify candlestick patterns? Well, there is. In fact, there are many. The problem is most of them are terrible. I recently tested a bunch of the most popular indicators of this kind to find out which is the best candlestick pattern indicator for MT4. Personally, I don’t need an indicator to help me identify candlestick patterns anymore.

Also, since I apply my own filters to qualify good candlestick patterns, simply pointing out candlestick patterns isn’t necessarily very useful to me. See one of the updated articles in my candlestick trading course to see what I mean. However, when I first started trading candlestick patterns, a good candlestick pattern indicator for MT4 would have been very useful to me, so I figured some of you would find this useful. The Best Candlestick Pattern Indicator for MT4. I chose the 3 indicators below after testing many candlestick pattern indicators for MT4. Many of the indicators I tested were junk. Others no longer worked. The indicators that I could get working were ranked by their ability to identify strong reversal patterns. Keep in mind that just because an indicator made it onto this list doesn’t mean that I’m endorsing it. In fact, I’m only recommending one of these indicators and even it isn’t perfect. I’ll explain more below. The screenshots used are from the same broker, timeframe, and section of the chart. My hope is that this provides a fair comparison. Below are my top 3 picks, including the best candlestick pattern indicator for MT4 that I could find: #3 Pattern Recognition Master. I noticed a few other websites recommending this indicator, so I had high hopes for it. Unfortunately, it didn’t live up to the hype. The Pattern Recognition Master indicator claims to identify 10 popular candlestick patterns (5 bullish and 5 bearish patterns).

Each individual candlestick pattern can be turned on or off. Alerts for each individual pattern can be turned on or off as well. It also has the option to set a separate color for each pattern. Note: Of the 3 indicators listed on this page, this is the only one that allows you to assign a separate color to each candlestick pattern. It uses abbreviated labels, which keeps the chart less cluttered, and includes an onscreen legend to help you identify each pattern that is highlighted. Click to enlarge image. Sounds good, right? So… what’s the problem? Actually, there are several problems with this indicator that kept me from ranking it higher. For instance, the indicator doesn’t identify the morning star or evening star patterns (including the doji star patterns which are the same thing) for some reason.

This indicator also seems to think almost anything with a long wick is a shooting star or hammer, regardless of how large the real body is. It also doesn’t identify the hanging man or inverted hammer, although this is by design. As a result, it will label any hanging man as a hammer and any inverted hammer as a shooting star. On a more general note, this indicator works on candlestick shapes alone – not context. Candlestick patterns are useless if they are not traded within the proper context of the market. #2 Candle Patterns Indicator. The next candlestick pattern indicator for MT4 is slightly better in terms of identifying patterns, although it falls short in every other aspect. Candle Patterns Indicator was designed to identify over 30 popular candlestick patterns. Unfortunately, you can’t turn each individual candlestick pattern on and off. Instead, you chose from strong reversals, weak reversals, continuations, and unclassified patterns. You have to turn these patterns on or off in groups, which I found to be problematic (more on this later). Morning star and evening star patterns are identified by this candlestick pattern indicator, which is an improvement over the previous indicator. It can identify hanging man and inverted hammer patterns as well, so the hammer and shooting star patterns are identified more accurately. Example: In the section of the chart pictured below, there were no hammer patterns. The indicator did not identify any hammer patterns, which is accurate. Compare that to the previous chart, where 4 hammers where identified incorrectly.

It uses full labels (except with the morning star and evening star), which can look messy, but that’s just my personal preference. Click to enlarge image. It’s not perfect, but so far there are no deal breakers, right? So why am I not recommending this indicator? There are several serious problems with this candlestick pattern indicator that keep me from ranking it higher. For instance, it considers the inverted hammer, hanging man, dark cloud cover, bullish piercing, and other weak to moderately strong patterns to be strong reversal patterns (which they are not). Earlier, I mentioned that you can’t turn each pattern on or off individually, which means you’re stuck with this mix of strong and weak patterns no matter what you do to the settings. If you’re new to candlestick trading, this could be confusing. Just like the last indicator mentioned, this one also identifies candlestick patterns out of context, although it does a better job at identifying hammers and shooting stars. Add to the fact the chart is already crowded, because the indicator has no option to use abbreviated labels, the labels also crowd the candlesticks that they’re identifying (see the image above). This can make it difficult to, for instance, measure from the high or low of a candlestick using the measuring tool. You also get random candlesticks with just an arrow and no label from time to time (see the image above – bottom right).

#1 Nison Candle Highlighter. This is the only indicator that I can recommend for identifying candlestick patterns. I believe it is, by far, the best candlestick pattern indicator for MT4. Update: You can now read my full Nison Candle Highlighter review for more information about this indicator. Steve Nison is THE authority on candlesticks. He is responsible for introducing Japanese candlestick trading to the Western world. The Nison Candle Highlighter is designed to identify 28 candlestick patterns according to Steve’s own specifications, so you know the patterns are accurate. It has the ability to turn each individual candlestick pattern on or off, so you can focus on just the patterns that you’re interested in trading. You can use full or abbreviated labels (pictured below), so you can keep your charts uncluttered. Click to enlarge image. The sales page has a legend that you could reference or print out if needed, although the abbreviated labels are pretty self-explanatory. This is the most logical and elegant abbreviation system that I encountered while I was testing these candlestick pattern indicators. As you can see from the image above, the labels don’t crowd the candlesticks either. Okay, so enough about labels. How well does it identify candlestick patterns?

For starters, it actually identifies all 28 patterns that it’s designed to identify. The Nison Candle Highlighter accurately identifies each candlestick pattern, as you might imagine, but it also identifies each candlestick pattern within the proper context of the market. In other words, it won’t identify a hammer (bullish reversal pattern) after a bullish price movement. None of the other indicators that I tested could do that. Of course, it’s not perfect. For instance, if you look at the chart above you can see a couple of engulfing patterns that were nothing more than a small real body candlestick engulfing a doji or spinning top. Although those are technically engulfing patterns, they aren’t worth considering because their size is so small relative to the previous candlesticks. I tested many indicators to find the best candlestick pattern indicator for MT4. All of the free candlestick pattern indicators that I tested were terrible. Most of them seemed to have a problem with their labels in one form or another, which may not be a big deal to you. I like to keep my charts as clean as possible. More importantly, the free indicators identified candlestick patterns on the shapes of the candlesticks alone. They did not accurately identify candlestick patterns within the proper context of the market, which is crucial to candlestick trading. There is no substitute for experience and actually learning to identify these candlestick patterns for yourself.

However, an accurate candlestick pattern indicator could be very beneficial to certain traders. The Nison Candle Highlighter accurately identifies candlestick patterns within the proper context of the market, which is why I believe it’s easily the best candlestick pattern indicator for MT4. Still looking for a profitable trading system ? I've tested 10+ systems. Only 3 were profitable! Learn more about my #1 recommended trading system, Day Trading Forex Live. Best 4 Candlestick Patterns to Scan and Monitor. March 1, 2016 by Lee. If you are scanning for candlestick patterns you will find hundreds every day. The key is to find ones that can make you money. In this article I will cover 4 of the best patterns to scan for and explain their characteristics. According to the great statistics provided by Thomas Bulkowski there are 4 candlestick patterns that seem to stand head and shoulders above the rest in terms of accuracy. Here’s the best ones to scan for and watch. 3 Line Strike Candlestick Pattern. The 3 Line Strike pattern is rarely found.

However, it has a very high accuracy rating and should not be ignored if you get an alert or your scan produces one on a stock. The pattern can be for bearish and bullish reversal and the ones which are most effective appear close to a yearly high or low. For a bearish 3 Line Strike you would see 3 consecutive higher closes, followed by a bearish candle that cuts past the whole previous 3 day range. See example below. For a bullish 3 Line Strike pattern, you would see 3 consecutive down closes followed by a bullish candle that shoots past the previous 3 day range. It’s the same as above, but in reverse. 3 Black Crows Candlestick Pattern. According to the stats at Thomas Bulkowski’s site, this has a hit rate of 78% at bearish reversals. However it is also noted that a breakout of this pattern area can be a strong continuation signal for a trend resuming. So discretion is needed on this one, and is worth further analysis. The 3 Black Crows is identified by 3 long bearish candles which all close near the low of the period. If they occur near a yearly low, and the pattern is broken to the upside in future, they can signal strong reversals.

Evening Star Candlestick Pattern. The evening star once again has a high success rate. It is best found somewhere near a yearly low and used as a bullish reversal if broken. The first candle must be a long body candle, and the “star” is a short body candle with a wick above and below. It is similar to a doji in appearance. Abandoned Baby Candlestick Pattern. The abandoned baby has a high strike rate as a bullish chart pattern. It is a small doji candle that is left “abandoned” on its own after a sharp down move. There will be a decent down day, followed by a gap down but price goes nowhere and create a small Doji candlestick. This is then left abandoned as price gaps up and away the next day. Nison Candle Highlighter Nison Candle Scanner Review.

Use: MetaTrader 4 (MT4) Indicator. This indicator has all of the important features you need. However, you can't set an individual color for each pattern and alerts don't work in the MT4 version. It's expensive compared to other premium indicators of its kind. However, no other indicators that I've tested come close to the accuracy of this one. The indicator is very straight forward and easy to use. Even the activation process is easy. You get one key. No need to generate a new key for each trading account. I initially had trouble activating the indicator (more on this later). Everyone involved was very helpful. They even remotely accessed my computer to solve the problem. Nison Candle Scanner Highlighter is easy to use You can enable and disable each candlestick pattern individually It allows you to customize the color of the bullish and bearish labels Select from full labels (Bearish Engulfing) and abbreviated labels (-E) There's no need to contact support or generate a new key for each new trading account There's no limit to the number of accounts you can install this indicator to This is the most accurate candlestick pattern indicator that I have tested. What I Don't Like. You can't customize the label color for the neutral patterns You can't select an separate color for each individual pattern The MetaTrader 4 version does not use alerts (when it easily could) ? Summary: Nison Candle Scanner (NCS) is an indicator for the Ninja Trader, Trade Navigator, and Trade Station platforms. There is also a version of the indicator called the Nison Candle Highlighter (NCH) which is available for the MetaTrader 4 and eSignal platforms. This indicator accurately highlights 28 of Steve Nison's favorite candlestick patterns. NCS has the added ability to scan for patterns and alert you when new patterns develop.

Steve Nison is the father of Japanese candlestick trading in the West. We literally have candlesticks on our charting platforms in the West because of the efforts of Steve Nison. I've seen others claiming to be the authority on candlestick trading, but Steve Nison is the real deal. That being said, this indicator highlights candlestick patterns according to Steve's own specifications, so you know that it's accurate. $49 Monthly or $495 for Lifetime Access (NCH)! My Nison Candle Highlighter Nison Candle Scanner Review. I wasn't originally intending to write a Nison Candle Highlighter or Nison Candle Scanner review. My intention was to write an article about a good free candlestick pattern indicator for MT4. However, after testing a ton of the free indicators, not being satisfied with any of them, looking for more free indicators, finding outdated indicators and trying to updated them, etc., I had hit a brick wall. None of the free indicators that I had tested were good enough to recommend to you guys, so I decided to look at a few premium indicators. That's when I remembered that Steve Nison developed a candlestick pattern indicator a few years back called the Nison Candle Scanner.

The MetaTrader 4 version (which I tested) is actually called the Nison Candle Highlighter. Nison Candle Scanner (NCS) is available for Ninja Trader, Trade Navigator, and Trade Station. It highlights candlestick patterns, it can scan for patterns, and it can alert you when new patterns form. Nison Candle Highlighter (NCH) is available for MetaTrader 4 and eSignal and does not have the ability to alert or scan for patterns. On the plus side, the lower functionality of NCH comes with a significantly reduced price tag. I tested the Nison Candle Highlighter for a while. I had it for a month although I only really got to use it for about two weeks (more on that later). It was a huge improvement over the free indicators that I had been testing. The Nison Candle Highlighter (and I assume the Nison Candle Scanner) works exactly the way you would expect it to. I can definitely recommend it, but it's not cheap, so you'll have to decide if you actually need it and if it's worth the price to you. Is Nison Candle Scanner or Nison Candle Highlighter Right for You? NCSNCH Is Perfect for You If: You're learning to trade candlestick patterns You're interested in Steve Nison's methodology for trading candlestick patterns You use the Ninja Trader, Trade Navigator, Trade Station, MetaTrader 4, or eSignal platforms You like to combine candlestick trading with other profitable trading methods You're a visual learner and you think you could benefit from seeing candlestick patterns highlighted on your charts. NCSNCH Is Not for You If: You're already an experienced price action trader You don't use Ninja Trader, Trade Navigator, Trade Station, MetaTrader 4, or eSignal.

The price of Nison Candle Highlighter and especially Nison Candle Scanner will prevent many of you from giving this excellent indicator a try. For others, it will be well worth the price to basically have Steve Nison looking over your shoulder, teaching you candlestick patterns. When I first started using the Top Dog Trading method, I purchased Barry's indicators too. They were very useful in helping me identify good trading setups in the beginning, so I know some of you will find Steve Nison's candlestick pattern software useful as well. What Works and What Would I Change? The Nison Candle Highlighter that I tested worked very well compared to the other indicators that I had tested. However, it's not perfect, so let's go over some of the pros and cons. ?Steve Nison is the father of Japanese candlestick trading in the West, so you know a candlestick pattern indicator that operates based on his own specifications will be accurate. In fact, the Nison Candle Highlighter is far more accurate than any other candlestick pattern indicator that I've tested so far. Not only does it highlight candlestick patterns correctly, it highlights them in the correct context of the market. Click to enlarge image. As you can see from the image above, this indicator highlights bullish reversal patterns after bearish price movements and bearish reversal patterns after bullish price movements.

This is key for accuracy when trading candlestick patterns. All of the other candlestick pattern indicators that I tested had trouble highlighting the patterns within the correct context of the market. Highlight Individual Patterns. The Nison Candle Highlighter and Nison Candle Scanner allow you to select whether or not to highlight each of the 28 candlestick patterns individually. In my tests, I rated these indicators on how accurate they were in highlighting the strong reversal patterns, so this feature was very useful. You can also see a feature to allow alerts in the image above. However, alerts do not work with the MetaTrader 4 and eSignal version of this indicator. In fact, the sales page specifically mentions that, so I'm not sure why the option is there. Maybe it's a vestige of a previous function that is not longer supported. Either way, they could easily add basic MT4 alerts and they don't have them. I was a bit surprised by that, but I never use alerts anyway so it's not a big deal to me. It Could Use More Custom Colors. Another thing that you can see from the image above is that the indicator gives you the ability to set custom colors for long or short candlestick patterns. However, you cannot set a custom color for neutral patterns. Click to enlarge image.

In the image above, you can see the neutral patterns highlighted in a yellow color. Since that color can't be changed, those labels could be difficult to read with certain background colors. Another feature that I would like to see (which may not be important to you) is the ability to set a separate custom color for each individual pattern. Some of the other indicators that I tested were capable of that, and I can see that being useful to some traders. Use Full or Abbreviated Labels. ?Another cool feature of the Nison Candle Highlighter and Nison Candle Scanner is the ability to use either full or abbreviated levels. The image below shows the full labels. Click to enlarge image. ?I really prefer to use the abbreviated labels because it keeps the chart looking less cluttered. However, it's nice to have the option to switch back and forth when you're learning.

None of the other indicators that I tested had the ability to choose. Most used full labels. A few used abbreviated labels (although none of the abbreviation systems were as elegant as NCH or NCS). Note: There is a legend for the abbreviations on the sales page for Nison Candle Highlighter and Nison Candle Scanner. You could print out or reference this legend if you ever need help to determine what a certain abbreviation represents. That way you wouldn't need to switch back and forth between full and abbreviated labels. However, I found the abbreviation system to be fairly easy to understand, e. g., - E = bearish engulfing , +E = bullish engulfing , - S = shooting star , +H = hammer , etc. It's Relatively Clean Looking. ?In the image below, all 28 candlestick patterns are enabled (although not all are represented in this section of the chart). As you can see, even with all of the candlestick patterns enabled, the chart is still relatively clean looking. Of course, it would look completely different if I had selected full labels for this image. Although the chart below may look messy to you, it's a huge improvement over the other indicators that I tested. Click to enlarge image. Many of the other indicators that I tested did not allow for abbreviated labels. Nearly all of the other indicators that I tested crowded the candlestick wick with their labels. As you can imagine, the crowding labels make it difficult to see the absolute highs or lows of the wicks.

They also make it difficult to accurately use the measuring tool. Combining Candlestick Patterns and Other Signals. I've been trading candlestick patterns for nearly 6 years. Using candlestick patterns as entry signals is one of my favorite trading techniques. However, I never trade candlestick patterns on their own. Instead, I like to combine them with other trading techniques and look for a confluence of signals. Click to enlarge image. My favorite way to trade candlesticks is to combine the strong reversal patterns with regular MACD divergence. In the image above, you can see several examples of this. In total, there were 4 candlestick patterns that would have been good entry triggers into these divergence trades. Of those 4, only 1 of them would not have earned at least a 2:1 reward to risk ratio.

Support Went Out of Their Way? for Me. As I mentioned earlier, I was only able to test the Nison Candle Highlighter for a couple of weeks instead of a month. That's because I had trouble activating it on my desktop PC. The guys at CandleCharts. com went out of their way to help me get it running. The main tech support guy, Syl, even remotely viewed my PC to make sure that I wasn't making some kind of mistake during installation. He worked on the problem, trying many different things, for about an hour. When he was unable to resolve the issue, he got their programmer to do the same thing. These guys spent hours altogether trying to get this figured out for me. ?Finally, I went out and bought a laptop. I had been meaning to get one anyway. Nison Candle Highlighter installed right away on the new laptop. I think I have an idea of why there was a problem. I rebuilt my PC a couple of years back and used the same hard drive. When I boot the system, the first screen says that I'm using an American Microtrends motherboard. However, my new motherboard is an ASUS so there's obviously a problem. I've known about this for a while and I've been meaning to fix the issue. Since Nison Candle Highlighter and Nison Candle Scanner are activated per machine, it's possible that this was preventing activation on my desktop PC.? What Are Other People Saying About NCH and NCS? So far in my Nison Candle Highlighter Nison Candle Scanner review, I've explained that Steve Nison's indicator is more accurate than any of the other candlestick pattern indicators that I've tried, which is the most important thing.

I've shown you some features that I like about Steve's indicator as well as some ways that I think it could be improved. I also told you about how hard their support staff worked on my behalf. Now that you know what I think about the Nison Candle Highlighter Nison Candle Scanner indicator, let's take a look at what some of Steve's other customers are saying about it. The Best Candlestick Pattern Indicator for MT4. Wouldn’t it be great if there was an indicator that could help you identify candlestick patterns? Well, there is. In fact, there are many. The problem is most of them are terrible. I recently tested a bunch of the most popular indicators of this kind to find out which is the best candlestick pattern indicator for MT4. Personally, I don’t need an indicator to help me identify candlestick patterns anymore. Also, since I apply my own filters to qualify good candlestick patterns, simply pointing out candlestick patterns isn’t necessarily very useful to me. See one of the updated articles in my candlestick trading course to see what I mean. However, when I first started trading candlestick patterns, a good candlestick pattern indicator for MT4 would have been very useful to me, so I figured some of you would find this useful. The Best Candlestick Pattern Indicator for MT4. I chose the 3 indicators below after testing many candlestick pattern indicators for MT4. Many of the indicators I tested were junk. Others no longer worked. The indicators that I could get working were ranked by their ability to identify strong reversal patterns. Keep in mind that just because an indicator made it onto this list doesn’t mean that I’m endorsing it. In fact, I’m only recommending one of these indicators and even it isn’t perfect. I’ll explain more below.

The screenshots used are from the same broker, timeframe, and section of the chart. My hope is that this provides a fair comparison. Below are my top 3 picks, including the best candlestick pattern indicator for MT4 that I could find: #3 Pattern Recognition Master. I noticed a few other websites recommending this indicator, so I had high hopes for it. Unfortunately, it didn’t live up to the hype. The Pattern Recognition Master indicator claims to identify 10 popular candlestick patterns (5 bullish and 5 bearish patterns). Each individual candlestick pattern can be turned on or off. Alerts for each individual pattern can be turned on or off as well. It also has the option to set a separate color for each pattern. Note: Of the 3 indicators listed on this page, this is the only one that allows you to assign a separate color to each candlestick pattern. It uses abbreviated labels, which keeps the chart less cluttered, and includes an onscreen legend to help you identify each pattern that is highlighted. Click to enlarge image. Sounds good, right? So… what’s the problem? Actually, there are several problems with this indicator that kept me from ranking it higher. For instance, the indicator doesn’t identify the morning star or evening star patterns (including the doji star patterns which are the same thing) for some reason.

This indicator also seems to think almost anything with a long wick is a shooting star or hammer, regardless of how large the real body is. It also doesn’t identify the hanging man or inverted hammer, although this is by design. As a result, it will label any hanging man as a hammer and any inverted hammer as a shooting star. On a more general note, this indicator works on candlestick shapes alone – not context. Candlestick patterns are useless if they are not traded within the proper context of the market. #2 Candle Patterns Indicator. The next candlestick pattern indicator for MT4 is slightly better in terms of identifying patterns, although it falls short in every other aspect. Candle Patterns Indicator was designed to identify over 30 popular candlestick patterns. Unfortunately, you can’t turn each individual candlestick pattern on and off. Instead, you chose from strong reversals, weak reversals, continuations, and unclassified patterns. You have to turn these patterns on or off in groups, which I found to be problematic (more on this later). Morning star and evening star patterns are identified by this candlestick pattern indicator, which is an improvement over the previous indicator. It can identify hanging man and inverted hammer patterns as well, so the hammer and shooting star patterns are identified more accurately. Example: In the section of the chart pictured below, there were no hammer patterns. The indicator did not identify any hammer patterns, which is accurate.

Compare that to the previous chart, where 4 hammers where identified incorrectly. It uses full labels (except with the morning star and evening star), which can look messy, but that’s just my personal preference. Click to enlarge image. It’s not perfect, but so far there are no deal breakers, right? So why am I not recommending this indicator? There are several serious problems with this candlestick pattern indicator that keep me from ranking it higher. For instance, it considers the inverted hammer, hanging man, dark cloud cover, bullish piercing, and other weak to moderately strong patterns to be strong reversal patterns (which they are not). Earlier, I mentioned that you can’t turn each pattern on or off individually, which means you’re stuck with this mix of strong and weak patterns no matter what you do to the settings. If you’re new to candlestick trading, this could be confusing. Just like the last indicator mentioned, this one also identifies candlestick patterns out of context, although it does a better job at identifying hammers and shooting stars.

Add to the fact the chart is already crowded, because the indicator has no option to use abbreviated labels, the labels also crowd the candlesticks that they’re identifying (see the image above). This can make it difficult to, for instance, measure from the high or low of a candlestick using the measuring tool. You also get random candlesticks with just an arrow and no label from time to time (see the image above – bottom right). #1 Nison Candle Highlighter. This is the only indicator that I can recommend for identifying candlestick patterns. I believe it is, by far, the best candlestick pattern indicator for MT4. Update: You can now read my full Nison Candle Highlighter review for more information about this indicator. Steve Nison is THE authority on candlesticks. He is responsible for introducing Japanese candlestick trading to the Western world. The Nison Candle Highlighter is designed to identify 28 candlestick patterns according to Steve’s own specifications, so you know the patterns are accurate.

It has the ability to turn each individual candlestick pattern on or off, so you can focus on just the patterns that you’re interested in trading. You can use full or abbreviated labels (pictured below), so you can keep your charts uncluttered. Click to enlarge image. The sales page has a legend that you could reference or print out if needed, although the abbreviated labels are pretty self-explanatory. This is the most logical and elegant abbreviation system that I encountered while I was testing these candlestick pattern indicators. As you can see from the image above, the labels don’t crowd the candlesticks either. Okay, so enough about labels. How well does it identify candlestick patterns? For starters, it actually identifies all 28 patterns that it’s designed to identify. The Nison Candle Highlighter accurately identifies each candlestick pattern, as you might imagine, but it also identifies each candlestick pattern within the proper context of the market. In other words, it won’t identify a hammer (bullish reversal pattern) after a bullish price movement.

None of the other indicators that I tested could do that. Of course, it’s not perfect. For instance, if you look at the chart above you can see a couple of engulfing patterns that were nothing more than a small real body candlestick engulfing a doji or spinning top. Although those are technically engulfing patterns, they aren’t worth considering because their size is so small relative to the previous candlesticks. I tested many indicators to find the best candlestick pattern indicator for MT4. All of the free candlestick pattern indicators that I tested were terrible. Most of them seemed to have a problem with their labels in one form or another, which may not be a big deal to you. I like to keep my charts as clean as possible. More importantly, the free indicators identified candlestick patterns on the shapes of the candlesticks alone. They did not accurately identify candlestick patterns within the proper context of the market, which is crucial to candlestick trading. There is no substitute for experience and actually learning to identify these candlestick patterns for yourself. However, an accurate candlestick pattern indicator could be very beneficial to certain traders.

The Nison Candle Highlighter accurately identifies candlestick patterns within the proper context of the market, which is why I believe it’s easily the best candlestick pattern indicator for MT4. Still looking for a profitable trading system ? I've tested 10+ systems. Only 3 were profitable! Learn more about my #1 recommended trading system, Day Trading Forex Live.



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