3 Candle Reversal Indicator MT4 + MT5

The 3 Candle Reversal Indicator identifies the morning star (bullish) and evening star (bearish) candlestick patterns. Also, the setup is three bars: a strong directional bar, then a small-body indecision bar, then a strong bar in the opposite direction that closes past the first bar’s midpoint. When the third bar confirms a green BUY arrow (morning star) or red SELL arrow (evening star) prints below or above it.

For more like this, browse the more candle-sticks indicators for forex or jump to the full all MetaTrader indicators.

What the 3 Candle Reversal Indicator does on the chart

Also, the 3 Candle Reversal Indicator identifies the classical morning-star (bullish) and evening-star (bearish) candlestick patterns. Also, still, the setup is three bars: a strong directional bar, then a small-body bar (doji-ish), then a strong bar in the OPPOSITE direction that closes past the first bar’s midpoint.

Morning star = bearish bar, small-body indecision bar, then a bullish bar that closes above the midpoint of the first bearish bar. Thus, the indicator prints a green BUY arrow below the third bar. Evening star = mirror, prints a red SELL arrow above the third bar.

Key features and settings

• Detects morning star (3-bar bullish reversal)
• Detects evening star (3-bar bearish reversal)
• Configurable middle-bar body ratio for the indecision filter
• Confirmation closes are required – no repaint
• Arrow prints only on completion of the third bar
• Full alert system: popup, push notification to mobile MetaTrader, email, and sound — all four channels can be toggled independently from the inputs panel. Alerts fire once per closed bar so you never get spammed mid-tick.
• Built for both MT4 and MT5; works on every timeframe and every symbol your broker offers.
• Lightweight code that does not slow down the chart.

Setting	Description	Default
SmallBodyRatio	Middle bar’s body must be no more than this multiple of the average of bars 1 and 3	0.35
ArrowOffsetPoints	Arrow offset	40
EnableAlerts	Master toggle	true
EnablePopup	Popup on pattern complete	true
EnablePushNotify	Mobile push	false
EnableEmail	SMTP email	false
EnableSound	Play sound	false

How to read signals from the 3 Candle Reversal Indicator

In practice, star patterns at major support/resistance carry more weight than mid-range stars.

Entry idea (long). Wait for a green morning-star arrow. Also, still, hence, stop below the middle indecision bar’s low.

Entry idea (short). Wait for a red evening-star arrow. Next, stop above the middle bar’s high.

As a result, Exit idea. Target the prior swing in the OPPOSITE direction. Then, many traders scale out as price moves through structure.

Tuning the 3 Candle Reversal Indicator inputs

Start with the defaults, then tune for your market. SmallBodyRatio (default 0.35) sets the averaging length — raise it for smoother, slower signals or lower it for faster, more sensitive ones. Thus, yet, every alert channel — pop-up, sound, email and mobile push — toggles independently in the same inputs panel, and alerts fire once per closed bar.

Recommended timeframes and instruments

this indicator needs room for structure to form, so favour the higher timeframes.

• H1 and H4 for reliable, tradable structures.
• Daily for the cleanest patterns and levels.

Below H1 you get frequent, lower-quality structures. Also, still, hence, truly, it works best on the majors and XAUUSD where swings are well defined.

How to install on MT4 and MT5

Installation is the same for every indicator on this site. Next, plainly, unzip the download, copy the compiled .ex4 into your MT4 MQL4/Indicators folder (or the .ex5 into MT5 MQL5/Indicators), refresh the Navigator, then drag it onto the chart. For the full step-by-step with alert setup and troubleshooting, see our guide to installing MT4 and MT5 indicators.

Best practices and tips

• Wait for the pattern to complete and confirm with price action before acting.
• Add a momentum check so you are not catching a falling knife.
• Wait for the bar to close before acting on a signal.
• Backtest your configuration on at least 200 closed bars before trading live.
• Keep position sizing small while you learn how the tool behaves on your instrument.
• Review your results weekly and prune settings that underperform.

Get the 3 Candle Reversal for MT4 and MT5

One email unlocks the full library. This the tool plus the other 1,382 free MT4, MT5 and TradingView indicators we publish and maintain. Also, no paywall, no upsell, same opt-in for all of them – you give an email once and you can grab every tool we ship.

Enter your email and the file lands in your inbox right after. The download is free.

Built by forexmt4systems.com

This it is one of 1,383 free MT4, MT5 and TradingView indicators we publish and maintain. Then, every tool ships with ready-to-use compiled MT4 (.ex4) and MT5 (.ex5) files, a 4-channel alert system (popup + mobile push + email + sound), and is loaded on EURUSD H1 before release to confirm it draws cleanly without repainting. The same one-step email opt-in below unlocks the entire library – not just this one indicator.

FAQ

What does the 3 Candle Reversal measure?

It plots a clear signal layer that the 3 Candle Reversal computes from recent price and volume on the chart.

Is the indicator non-repaint?

By default the indicator only confirms a signal on the bar close, so the printed signal locks in once that bar closes. Thus, yet, still, some users prefer the early intra-bar mode for faster signals — both options are in the inputs.

Which timeframe should I use?

There is no single best timeframe. Thus, m15 to H1 is a common starting point for intraday traders, and H4 to D1 works for swing traders. Backtest the configuration on the timeframe you actually trade.

Does it work on instruments other than forex?

It works on any instrument MT4 and MT5 supports — forex majors, gold (XAUUSD), indices like US30 and NAS100, and major cryptos. Also, still, hence, truly, hence, fast-moving instruments may need a smaller period setting.

Can I add alerts?

Yes. Next, Pop-up, sound, push, and email alerts live in the inputs panel. On MT4 and MT5 the alert plays on the bar close that triggers the signal. In addition, this indicator ships with full alert functionality built in: popup alerts on the chart, push notifications to mobile MetaTrader, email alerts, and a sound alert with a configurable .wav file. you toggle each channel independently from the inputs panel (EnableAlerts, EnablePopup, EnablePushNotify, EnableEmail, EnableSound). Alerts trigger once per closed bar.

For external background reading, see the technical indicator basics. Are results guaranteed?
No. Trading involves risk. Results are not guaranteed. Past performance is not indicative of future results. Use the tool as one input. Always backtest before trading live.