The Butterfly Pattern Metatrader 4 indicator is a technical indicator that tracks extreme points on the chart.
It’s an awesome indicator to trade trend reversals with low risk trade entries.
Traders can eliminate smaller price swings by setting its input variable values to be greater than the value that represents small price swings.
Key Takeaways
- In a bid to get things underway, it is important for traders to pay more attention to the colored arrows that appears periodically below and above the candlesticks.
- Generally speaking, the Butterfly Pattern Indicator is able to identify tops and bottoms based on the inputs settings used.
- Drawing a trendline that connects successive Butterfly Pattern indicator arrows will give traders the opportunity to easily identity highs, higher lows, higher highs and lower lows, just by glancing at the line.
- The indicator draws points on the chart whenever price tends to reverse. With this piece of information, traders can determine when to exit/enter the market.
Feel free to explore the Butterfly Pattern indicator’s different parameters and settings to create your own personalized indicator setup.
Download This MT4 Forex Indicator Free
Download the “butterfly-pattern-indicator.ex4” Metatrader 4 indicator
Butterfly Pattern Indicator Chart (CAD/JPY H1 Chart Example)
Here’s an example of how the indicator should look like when loaded onto the Metatrader 4 chart.
Finding Buy and Sell Triggers With The Butterfly Pattern MT4 Indicator
Buy Signal: Go long when the lime upward pointing arrow of the Butterfly Pattern Indicator aligns below the candlesticks and the Awesome Oscillator MT4 indicator pops up green & red histograms above the zero-horizontal level.
Sell Signal: Go short when the orange-red downward pointing arrow of the Butterfly Pattern Indicator aligns above the candlesticks and the Awesome Oscillator indicator pops up red & green histograms below the zero-horizontal level.
Exit buy trade: Close all buy orders if while a bullish trend is running, the Butterfly Pattern indicator prints an orange-red downward pointing arrow.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the Butterfly Pattern Indicator prints a lime upward pointing arrow.
Tips: Trade the Butterfly Pattern indicator together with other technical indicators and you’ll be pleased with the results.
Although, it can serve as a standalone technical indicator, the best results off this indicator are the ones where it is paired with other indicators, for instance the one above (Awesome Oscillator).
Download This Forex Indicator Now
Download the “butterfly-pattern-indicator.ex4” MT4 indicator
Adjustable Parameters
Ext Depth, ext deviation, ext back step.
More Info About This Indicator
Tradable Currency pairs: Any
Trading Platform: MT4
Time frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: Chart Pattern
Installation
Copy and paste the indicator in the MT4 indicators data folder.
Then restart the MT4 terminal and attach it to any chart.
