ForexMetals

Many traders ask me for the detailed descriptions of the Japanese candlestick patterns that are detected by the MT4 indicator Pattern Recognition Master. So, here’s the list of the patterns that it can recognize with the corresponding chart pictures and signal descriptions:

Bearish patterns
	Shooting star. Can signal an end of the bullish trend. Should be confirmed by other patterns. The longer is the shadow the stronger is the signal.
	Evening star. Acts as a stronger trend reversal signal. Note that the shadows should be very short and the body shouldn?t large as well.
	Evening doji star. Almost the same as previous, but some traders consider it a stronger signal.
	Dark cloud pattern. The two-candle pattern is ending the bullish trend. Note the opening of the second candle — it should be above the first one?s close. Second candle should close below the 50% of first candle?s body. Both bodies should be long enough. Moderately strong signal.
	Bearish engulfing pattern. This two-candle pattern appears at the end of the uptrend. Second (bearish) candle should open higher than first candle?s high and should close above the first one?s low (completely engulf it). Moderately strong signal.
Bullish patterns
	Bullish hammer. Can signal an end of the bearish trend. Should be confirmed by other patterns. The longer is the shadow the stronger is the signal.
	Morning star. Acts as a stronger trend reversal signal. Note that the shadows should be very short and the body shouldn?t large as well.
	Morning doji star. Almost the same as previous, but some traders consider it a stronger signal.
	Piercing line pattern. The two-candle pattern is ending the bearish trend. Note the opening of the second candle — it should be below the first one?s close. Second candle should close above the 50% of first candle?s body. Both bodies should be long enough. Moderately strong signal.
	Bullish engulfing pattern. This two-candle pattern appears at the end of the downtrend. Second (bullish) candle should open lower than first candle?s low and should close above first one?s high (completely engulf it). Moderately strong signal.

If you never hear about Pattern Recognition Master before and don’t want to detect these patterns on your own, then you can simply download this wonderful indicator.