Candlestick Pattern Indicator (MT4/MT5): Engulfing Candle Signals & Backtester

Most candlestick pattern indicators do one job: they spot patterns and paint a symbol on the chart. That’s helpful—but it leaves you with the real question you actually care about:

Does this pattern work on this pair and this timeframe?

That’s exactly what this indicator is built for.

Instead of only marking bullish and bearish engulfing candle patterns, the indicator also scans historical data and shows you a percentage win rate on the chart. In this way, you can quickly judge how reliable the engulfing pattern has been for the specific FX pair or instrument.

What this indicator does 

This is a candlestick pattern indicator for MT4 and MT5 that:

• Finds every bullish engulfing and bearish engulfing pattern in your chart history
• Places clear arrows on the pattern candles (green for bullish, red for bearish)
• “Backtests” each signal using simple, transparent rules (entry/SL/TP)
• Displays pattern stats + win rate (%) on the chart

If you like trading price action but want numbers behind the setups, this gives you a fast reality check.

Engulfing pattern rules used for this indicator:

To keep the stats meaningful, the indicator uses strict, repeatable definitions:

• Bullish engulfing: a bearish candle followed by a bullish candle whose real body engulfs the previous body
• Bearish engulfing: a bullish candle followed by a bearish candle whose real body engulfs the previous body

Then it evaluates a hypothetical trade like this:

• Entry: open of the next candle after the engulfing pattern completes
• Stop loss: low of the engulfing candle (bullish) / high of the engulfing candle (bearish)
• Take profit: based on your chosen Risk:Reward (for example 1:1, 1:2, etc.)

Finally, it checks whether TP or SL is hit first within a configurable number of bars, and builds the win-rate stats from that.

Download the indicator

• MT4 download

• MT5 download

‍Why this is useful (and who it’s for)

Engulfing candles can look amazing on screenshots—and disappoint in real market conditions. Performance can vary wildly by:

• symbol (EURUSD vs XAUUSD vs NAS100),
• timeframe (M15 vs H4),
• volatility regime.

This indicator helps you quickly answer: “Is the engulfing pattern statistically worth paying attention to here?”

Even if you don’t trade it mechanically, the stats can guide you on when to trust the pattern—and when to disregard it.