Double Hammer and Shooting Star patterns mq (MT4) — review, price and free alternatives

The algorithm calculates wick-to-body ratios and relative position to recent swing highs and lows to reduce noise. It performs best on 15-minute to 4-hour charts during clear trend exhaustion or well-defined support and resistance zones. Risk management is implemented via recommended stop loss placement beneath the pattern low or above the pattern high and offers configurable position sizing based on account balance. Expected performance characteristics include moderate trade frequency, higher win rates on paired timeframe confirmation, and variable returns depending on risk per trade and market volatility. The review emphasizes transparent backtest results and encourages live-demo validation before committing capital.

The stop loss strategy places protective stops beyond the pattern extreme, typically 20 to 60 pips on forex majors or proportional ATR-based stops on crypto. Position sizing should be based on percent risk per trade, commonly 0.5% to 2% of account equity per signal to manage drawdown exposure. Vulnerabilities include extended trending moves that invalidate reversal patterns and low-liquidity sessions that produce false wicks. For most traders a recommended starting account size is $1,000 on micro accounts or $5,000 on standard accounts to accommodate typical stop placement and margin requirements when trading majors.

Attach the indicator to the desired chart and enable PC and mobile alerts in the properties panel. Key parameters to configure include confirmation candle, minimum pattern size, alert types, and position sizing presets. Recommended brokers are STP/ECN or reputable market makers with low spreads; avoid brokers with irregular spreads or poor execution. Optimal chart timeframes are 30 minutes to 4 hours for balance between signal quality and trade frequency. Begin with a demo account and run walk-forward tests for at least 90 days before live deployment.