What is an engulfing candle pattern?
Detects engulfing or pin bar patterns from the bodies and wicks of closed candles.
What is Candlestick Patterns?
Detects engulfing or pin bar patterns from the bodies and wicks of closed candles.
Illustrative signals of the rule on simulated data — not a trading recommendation.
Rule: An engulfing candle fully covering the previous body, or a pin bar with a wick twice the body: buy/sell in the pattern's direction. Entry = close of the signal candle; SL = entry ∓ 1.5 × ATR(14); TP1/TP2/TP3 = 1R/2R/3R.
How to read Candlestick Patterns signals
How Candlestick produces its number, and what each shape on the chart means.
Formula and how it works
A bullish/bearish engulfing has the current candle's body fully covering the previous candle's opposite-colored body. A bullish pin bar has a lower wick at least twice the body and longer than the upper wick; a bearish pin bar is the mirror image.
Choose the candle pattern and confirmation condition clearly when adding it to the EA brief.
Recommended MT5 parameters for Candlestick Patterns
Values used in the illustration; confirm them before deploying an EA.
| Parameter | Description |
|---|---|
| Pattern | The chart uses Engulfing and Pin bar; the brief picker defaults to Pin bar and can be changed. |
Frequently asked questions about Candlestick Patterns
Does Candlestick Patterns on this page use real or simulated data?
The chart on this page uses a deterministic simulated candle series; it is not market prices or trading results.
Can Candlestick Patterns be used in an EA?
You can describe the rule and parameters in a Custom EA brief. It needs independent testing with real data and server time.
How are the SL and TP levels on the Candlestick Patterns chart calculated?
Entry is the close of the signal candle. SL is 1.5 times ATR(14) away from entry; TP1, TP2 and TP3 are 1R, 2R and 3R away from entry.
Using Candlestick Patterns in an EA, and further reading
State the candle-close condition, parameters and server time clearly when you put the rule into an EA. See the EAs available on the marketplace to compare options, or read how to read MT5 backtest results before judging any EA.
Other price action indicators
Indicators in the same price action group, often used instead of or alongside Candlestick Patterns.
An indicator draws signals, but when to enter, where to stop out and how much to risk are still your set of rules. Send those rules and DinexSpace builds them into an EA.