Example D7: Chart pattern search used for initial stop loss and initial take profit
This is not a ready-to-use trading strategy. A trading strategy requires adjustment to the timeframe and symbol, along with thorough backtesting. The example is intended as a foundation for your own custom strategy and to help you get familiar with the Expert Advisor Builder web application. To import and use an example, please follow the instructions provided here.
Description
This example employs chart pattern detection for trade management. Patterns like triangles, head-and-shoulders, and double tops provide structured exit levels based on measured moves. The 1.00 forward adjustment means patterns' ideal levels are used without modification, trusting classical technical analysis principles.
Eighteen different patterns are enabled, covering continuation and reversal formations. Each pattern has well-established profit targets based on pattern height or width, providing objective exit levels. The system recognizes these patterns automatically, eliminating subjective interpretation.
Chart patterns represent crowd psychology visualized in price action. Using them for trade management aligns strategies with these psychological levels where significant trading activity often occurs, increasing the probability of successful exits.
Recommended to use M1 - M15
Recreate the Example
You can either import this example directly or set it up manually. To manually replicate the trading module, make sure a newly added module includes the following key settings and that the professional mode is activated:
Trade Basics
- Operation type = Long
- One trade mode = Off
Signal Generation - Chart Patterns
- Signal in use = On
- Signal used for = Entry
- Bullish Wedge = On
- Bearish Wedge = On
- Bullish Trendchannel = On
- Bearish Trendchannel = On
- Bullish Triangle = On
- Bearish Triangle = On
- Shoulder Head Shoulder Top = On
- Shoulder Head Shoulder Bottom = On
- Double Top = On
- Double Bottom = On
- Triple Top = On
- Triple Bottom = On
- Rectangle Top = On
- Rectangle Bottom = On
- Bullish Symetric Triangle = On
- Bearish Symetric Triangle = On
- Bullish Gap = On
- Bearish Gap = On
- Stop loss forward adjustment = 1.00
- Take profit forward adjustment = 1.00
Initial Stop Loss
- Selection = Chart patterns
Initial Take Profit
- Selection = Chart patterns
Screenshots
