Mastering the ThreeCandles Indicator for MetaTrader 5

Author: Tor

Hey there, fellow traders! Today, I want to dive into a nifty tool that can really help sharpen your trading strategy—the ThreeCandles indicator. This bad boy comes equipped with alerts that can ping your phone or send you emails, keeping you in the loop no matter where you are.

The ThreeCandles indicator analyzes candlestick charts to spot potential reversal points—basically, it's on the lookout for patterns that could signal a change in market direction. When it identifies a possible reversal, it triggers a sound alert and notifies you via email or push notification.

So, what does it look for? Here’s the scoop:

If you see a growing candlestick followed by another growing candle that doesn’t exceed the shadow of the previous one, and then a falling candle comes in with a body larger than the first growing candle, it’s a strong indicator that a reversal towards a SELL might be on the horizon.
On the flip side, if there’s a falling candlestick followed by another that doesn’t exceed the previous shadow, and then a rising candle appears with a body larger than the last falling candle, you might want to gear up for a reversal towards a BUY.

But that’s not all! This indicator also keeps an eye on tick volumes—looking for increases or decreases, as well as the size of that first candlestick. If the first candlestick in the pattern is larger than the pip value you’ve set in the settings, then the volume analyzer takes a back seat.

Visually, the indicator presents itself as colored candlesticks. When a candlestick is moving in the trend direction, it’s bright and bold; if it’s going against the trend, it appears pale. A neat way to keep your charts visually appealing while trading!

This gem was initially created in MQL4 and made its debut on the CodeBase back on October 4, 2016.

Fig1. The ThreeCandles Indicator

Mastering the ThreeCandles Indicator for MetaTrader 5

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