October 22, 2021

Install and use the CPI candlestick pattern indicator

5 min read
Install and use the CPI candlestick pattern indicator

CPI (Candlestick Pattern Indicator) is a technical tool that allows you to recognize combinations of candles in the trading schedule.

This type of indicator can prompt traders who use the interpretation of patterns in trading systems to fix the most successful points of entry and entry into the market to understand the variety of the most complicated combinations of Japanese candles. This indicator works fine with the Price Action system : it can automatically determine about 40 of its patterns and report them to the trader.

You should not treat the CPI identification of the candlestick pattern, both as a guide and about opening a trade transaction. The indicator of candlestick patterns with alert should be used synchronously with the main trading system or other technical analysis tools.

forex candlestick analysis
forex candlestick analysis

On the example of the trading floor graph, it is clearly seen that the indicator, for the most part, acts as a hint – indicates only what the signal is called, which is in almost every candle.

In order to understand the indications of the CPI recognition indicator, attention should be paid to analyzing the analysis of indicators of a candlestick chart, to understand in which case combinations or individual candles are as strong as possible in a variety of signals, how to approach the analysis of this information and draw the right conclusion based on the obtained information.

Start learning should be familiarized with the basics of analysis, learn and remember what are strong working patterns, learn, without using outside help, recognize the right combinations in the bidding process.

Without this skill, working with the indicator of reversal patterns will become very risky – the pattern indicator pays attention not only to strong signals in the candlestick chart, but also to those that require participation and confirmation for obtaining a profitable deal. Also, the trader must take into account that the schemes do not work spontaneously, but in combination with the levels of resistance and support.

In order to work on the exchange with the use of the technical tool CPI to become really productive, you first need to learn how to work without this tool. This can be achieved by studying the information, which is quite a lot in the public domain or by consulting with more experienced stock market players.

forex candle analysis tools
forex candle analysis tools

Adding the CPI indicator to MetaTrader

The standard list of tools for the MT4 and MT5 platforms does not include the indicator of the graphic model Candlestick (CPI). To install it, you need to download the corresponding files to the work computer, to the directory of the trading terminal.

When using MetaTrader 4:

  • On disk C, program files. Find the folder of your market access software package. Open the directory … \ MQL4 \ Indicators , drag the downloaded CPI files (Candlestick Pattern Indicator) into it;

In the case when a trader uses MetaTrader 5:

  • Drag and drop into the … \ MQL5 \ Indicators \ Examplesdirectory on drive C the CPI indicator files.

Further, there are 2 options:

  • start the program of your terminal. When you click the Insert / Indicators / Custom button, a selection of all available technical recognition tools will become available. From the proposed to choose the just downloaded CPI (candlestick recognition tool).
  • Run the trading platform. In the active navigator window, select Candlestick Pattern Indicator, drag it onto any open chart of the trading platform. The technical recognition indicator will be installed.

 Possibilities of the technical tool CPI.

The technical indicator CPI has a large list of various parameters. But, it will not be difficult for an experienced trader. The parameters allow you to select the indicator indicators you need for the trader – a graphic figure of the continuation of the trend movement, reversal patterns; You can customize the sound of a new figure; Assign a number of candles for analysis; On the price chart, you can choose options for receiving signals.

  • Parameters allow you to select the indicator indicators you need for a trader – a graphic figure for the continuation of the trend movement, a reversal pattern;
  • You can customize the sound of a new figure;
  • Assign a number of candles for analysis;
  • On the price chart, you can choose options for receiving signals.

 Setting the parameters of the CPI indicator

On the main panel of the MT, by clicking the “Charts” button, activate the list of tools. In the drop-down list of offers, find Candlestick Pattern Indicator, open the “properties”. A new toolbar will appear.

  • “ShowStrongReversalPatterns” – the line allows you to enable / disable the most frequently repeated first-order figures;
  • “ShowWeakReversalPatterns” – removes and displays the weak pieces on the chart, take them to work for lack of other signs, it is undesirable, it is possible to use to confirm the candlestick formations of the second order, especially during long transactions;
  • “ShowContinuationPatterns” – this tool allows you to activate or deactivate the display of the provisions of the current trend;
  • “ShowUnclassified” – recognizes additional graphic shapes on the transaction chart;
  • “View-Bars” shows how many candles of the chart the indicator works. “SellColor” – a colored beacon down to a bearish signal (usually red);
  • “BuyColor” – a colored beacon up on a bullish signal (usually green);
  • “TextColor” – an inscription in bright color with the name of a certain figure on the chart;
  • “Sound-or-Email-Alert” is an audio signal when a pattern appears.

If you analyze the results of the trades, in which the CPI was applied, you can see that the standard settings allow you to achieve very good results.

 Trading system

In trading, the technical tool CPI perfectly showed its functions on assets with medium and weak volatility. Impressive results of trading using the combination recognition indicator were obtained in trading in a short time: from fifteen minutes to one hour. Best of all, the indicator of combinations is triggered when an asset with a small number of signals of a technical recognition tool is selected, the frequency of an alert in one direction should be twenty to thirty candles. When studying the obtained data, it is necessary to listen to the signals generated by the tool only next to strong levels of support and resistance. In this case, the application of the installed tool Candlestick Pattern Indicator will be justified and will give a good result.

In any case, no matter how well the CPI identifier shows itself, it’s not worth relying on trading indicators. The testimony of this tool can not be the basis of the trading system of the trader, but can serve as an excellent complement to the strategy, provided that the obtained data are correctly analyzed. Any entry into the market must be conscious, and not calculated with the help of an ordinary tool.