SwingTrade Candle Patterns EA V1.0 MT4

SwingTrade Candle Patterns EA V1.0 MT4 — Clean, Prop-Firm-Friendly Swing Trading on H1/H4

If you like the calm rhythm of swing trading more than the chaos of scalping, you’ll feel right at home with SwingTrade Candle Patterns EA V1.0 for MT4. This Expert Advisor focuses on high-quality setups built around classic candle patterns—Pin Bar, Engulfing, Morning/Evening Star, and Hammer—then confirms momentum with RSI and controls risk with ATR-based money management. The result is a deliberate, low-noise trading style aimed at steady equity growth and controlled drawdowns. It’s built for real-world constraints too: prop-firm rules.
Supported pairs: EURUSD, GBPUSD, AUDUSD, USDJPY.
Timeframes: H4 or H1.
Minimum deposit: $500 (with conservative risk).

What Is SwingTrade Candle Patterns EA?

SwingTrade Candle Patterns EA is a rule-based MT4 Expert Advisor that automates higher-timeframe swing entries using price-action patterns traders trust. Rather than chasing every tick, it waits for recognizable reversal or continuation signals, verifies momentum with the Relative Strength Index (RSI), and then sizes and places stops using the Average True Range (ATR). The idea is simple: fewer, higher-quality trades; clean logic; and robust risk control that behaves well across multiple majors.

This EA is especially suitable for traders who prefer:

• Fewer trades with clearer logic.


• Lower correlation with intraday noise and spreads.


• A ruleset that aligns with prop-firm risk requirements (daily loss limits, controlled exposure, and moderate position sizing).

Why Candle Patterns + RSI + ATR 

• Candle Patterns = Structure. Pin Bars and Engulfings highlight rejection and control shifts. Morning/Evening Stars and Hammers capture swing turning points that often precede measured moves.


• RSI Confirmation = Momentum Check. A pattern alone can be a trap. RSI helps confirm that the pattern forms alongside supportive momentum (e.g., avoiding counter-trend fakes in flat markets).


• ATR Money Management = Adaptive Risk. ATR scales stops and targets by current volatility. When markets expand, the EA gives trades room to breathe; when quiet, it tightens risk—keeping behavior consistent across sessions and pairs.

Supported Markets & Timeframes

• Pairs: EURUSD, GBPUSD, AUDUSD, USDJPY


• Timeframes: H4 (primary) and H1 (for more signals)
  On H4, you’ll typically see fewer entries but more “structural” signals—ideal for a low-stress routine. H1 introduces additional opportunities while retaining swing characteristics and avoiding frantic intraday churn.

Minimum Deposit: Start from $500 with conservative risk (e.g., 0.5%–1% per trade). Traders with larger balances can scale linearly while respecting prop-firm rules.

How the EA Finds & Manages Trades

1) Signal Detection

• Pin Bar / Hammer: The EA identifies long tails rejecting a key price area; bullish or bearish classification is based on wick direction and close location.


• Engulfing: A full-body takeover candle that swallows prior body; confirms a shift in control.


• Morning/Evening Star: Three-candle reversals showing exhaustion followed by decisive control by the opposite side.

2) RSI Confirmation

• Trend Alignment: Optional RSI filter avoids heavy counter-trend trades.


• Overbought/Oversold Context: The EA can require RSI to exit extreme zones before validating the signal, reducing “catching a falling knife.”

3) ATR-Based Risk

• Stop-Loss (SL): Calculated as a multiple of ATR (e.g., 1.5–2.0×), anchored beyond the pattern’s invalidation point.


• Take-Profit (TP): Uses ATR-multiples (e.g., 1.5× to 3.0×) or structure targets (recent swing highs/lows).


• Trailing Logic: Optional ATR trailing to lock in profits once price expands in your favor.

Prop-Firm-Friendly By Design

Trading evaluations punish erratic risk. This EA helps you stay composed:

• Daily Loss Guard: Optional daily loss cap to halt trading if a threshold is hit.


• Max Concurrent Trades: Limits the number of open positions across pairs.


• Per-Trade Risk Control: Percent-risk or fixed-lot with ATR-sized stops.


• News Pause (optional): If you prefer, you can pause trading around high-impact news to keep equity swings smoother.


• Time Filters: Trade only during your preferred sessions to match prop-firm guidelines.

Recommended Settings 

Use these as a starting point and optimize per broker and pair.

• Timeframe: H4 for cleaner swings (H1 for more signals).


• Risk Per Trade: 0.5%–1.0% on a $500+ account.


• ATR Period: 14 (classic), SL = 1.8× ATR, TP = 2.2×–2.8× ATR depending on pair volatility.


• RSI Period: 14 with confirmation ON (e.g., avoid buys if RSI > 70; avoid sells if RSI < 30, or require cross back inside range).


• Max Open Trades: 1–3 total (across all pairs).


• Daily Loss Limit: 2%–3% (EA stops trading for the day).


• Trade Window: London + early NY for H1; flexible for H4.


• Min Deposit: $500 (use micro lots if spread is wider).

Installation & Setup (MT4)

1. Open MT4 → File → Open Data Folder.


2. Go to MQL4 → Experts and paste the EA file.


3. Restart MT4 or right-click Navigator → Refresh.


4. Attach SwingTrade Candle Patterns EA to an H4 or H1 chart on EURUSD, GBPUSD, AUDUSD, USDJPY.


5. Enable Algo Trading (AutoTrading) in MT4 and in the EA’s settings.


6. Configure inputs: risk mode, ATR/RSI parameters, max trades, daily loss cap, and time filters.


7. Forward-test on a demo for a couple of weeks to ensure broker conditions and settings align with your goals.

Best Practices for Consistency

• Pick a Core Set of Pairs: The four supported majors are enough; avoid over-diversifying just to chase signals.


• Stick to Your Timeframe: H4 fosters patience and quality; H1 offers more trades but can add variance.


• Respect Risk Caps: Prop-firm or personal, limits keep you in the game.


• Don’t Over-Optimize: Minor parameter tweaks are fine; over-fitting can break when conditions change.


• Monitor Spread & Swaps: Higher spreads on crosses or off-hours can distort ATR sizing.


• Review Weekly: Check pattern quality and any repeated invalidations; adjust RSI/ATR multipliers as needed.

Example Trade Walkthrough 

A bullish Engulfing forms at a prior demand area on GBPUSD H4. RSI has just recovered from sub-30 into the 40s, signaling that downside momentum is fading. The EA confirms the pattern rules, sizes the stop at ~1.8× ATR under the pattern’s low, and sets TP at ~2.4× ATR near a recent structure high. As price moves favorably, the ATR trailing tightens behind the move. If the day’s equity drawdown ever reached your daily cap, the EA would pause new entries, helping protect your evaluation or funded account.

Who Is This EA For?

• Swing traders who prefer fewer, clearer setups.


• Prop-firm aspirants needing disciplined risk and consistent behavior.


• Busy traders who can’t babysit charts all day but want quality setups on majors.


• Price-action fans who believe candles tell a story—validated by momentum and governed by risk math.

Final Notes & Risk Disclaimer

SwingTrade Candle Patterns EA V1.0 MT4 aims for stable swing trading with low drawdown and steady growth, especially when used with conservative risk and clear prop-firm rules. Still, markets can be unpredictable. Past performance does not guarantee future results. Always test on a demo first, verify broker conditions, and never risk money you can’t afford to lose.

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