Automated Forex Trading Systems (EAs)

An Expert Advisor (EA) is actually a small piece of software that plugs in a Forex Platform and trades the Foreign Exchange without human intervention

Fully-automated trading systems have become widely popular among Forex Traders, these systems are commonly called Expert Advisors (EAs) or Forex Robots.

What is an Expert Advisor (EA)?

An Expert Advisor is actually a small piece of software that plugs in a Forex Platform and trades the Foreign Exchange without human intervention. The most popular platform for automated trading is MetaTrader4, but other Forex Platforms can be used as well, such as JForex, CTrader, TradeStation, ZuluTrader, and NinjaTrader. Most commonly Forex traders prefer MetaTrader4 based on the variety of providers for automated trading.

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EA BUILDER (Custom EA Builder)

■ Creating Free Indicators

■ Build your Custom Expert Advisor

■ Creating paid EAs

■ Trading Forex, Stocks, Commodities, ETFs

■ Platforms: MetaTrader4, MetaTrader5, TradeStation

■ Fully Customized EA Building

■ Multiple Functions including Time, Trendlines, Support and Resistance

■ EA Money Management Control

■ Indicators Building with alerts (email, audio and on-screen)

■ Free for creating Indicators

■ 97 USD for EA building (One-Time purchase)

■ Unlimited Real and Demo Accounts

» Review the EA Builder


■ Forex Scalping



■ Multiple Timeframes

■ Platforms: MetaTrader4 / MetaTrader5

■ 4/5 Digits trading

■ Focus on Risk Protection, Spread & Slippage Control

■ 299 USD

■ 3 Real Accounts and unlimited Demo

■ Omega Indicator Free


» Review the Wallstreet Forex


■ Mid-Term trading

■ 100% Rule Based Trading



■ Multiple Timeframes

■ Platforms: MetaTrader4

■ High Performance: 20,000 pips over three years

■ Easy to set up with video and PDF guide

■ Easy to follow, audio, visual, email and MT4 push signals

■ Full Support Available

■ 149 USD

■ Lifetime license


» Review the 1000pip Climber



■ Forex Scalping

■ Multiple Timeframes

■ Platforms: MetaTrader4

■ Visualize Risk Management / 3 Filters

■ High Reward/Risk ratio

■ 237 USD

■ Free Lifetime Updates

■ 1 Real Account and 2 Demo Accounts




■ Forex Scalping


■ M15 Timeframe

■ Platforms: MetaTrader4

■ Spread & Slippage Protection

■ Trend, Retrace and Countertrend Algorithms

■ Dynamic Take Profit and Stop-Loss

■ 279 USD

■ 1 Real Account and unlimited Demo

■ Free Future Updates

» Review the Forex Diamond

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Chart pattern recognition is a machine learning process. This means developers train and customize their system based on historical price data (supervised process) in order to use it for forecasting future price behavior (unsupervised process).Forex Pattern Recognition

What is Chart Pattern Recognition?

Chart Pattern Recognition refers to computer algorithms designed to recognize regularities in the price data series of a financial instrument, price regularities identified as chart patterns. Chart pattern recognition is a machine learning process. This means developers train and customize their system based on historical price data (supervised process) in order to use it for forecasting future price behavior (unsupervised process).


5-step process, generally used by pattern recognition systemsIntroduction to Chart Pattern Recognition

Chart pattern recognition systems belong to technical analysis software. Their aim is to analyze and to identify recognizable patterns that may occur in the price chart of a Forex pair, an index, a commodity, etc. There are hundreds of different recognizable patterns. The recognition process involves several technical analysis theories such as Elliott Waves, Fibonacci Ratios, Harmonic Patterns, etc. These patterns are more reliable when identified on long timeframes, such as the 1-Hour, 4-Hours, and 1-Day.

Chart pattern recognition software includes:

Indicators that plug-in into a trading platform (MT4, MT5, etc.) and operate fully autonomous, without any human intervention

Computer algorithms that run on a web-server and distribute their findings (identified chart patterns) to a list of subscribers


The 5-Step Process for Identifying Chart Patterns

Chart pattern recognition systems incorporate advanced algorithms designed not only to identify general chart patterns, but also to filter them, and then to calculate its trigger and target levels.

This is a 5-step process, generally used by pattern recognition systems:

(i) Analyzing simultaneously different financial instruments on all available timeframes

(ii) Identifying general potential patterns (based on Elliott Waves, Harmonic Ratios, etc)

(iii) Filtering the results to exclude false or weak patterns

(iv) Calculating trigger levels (enter) & target levels (pattern completion / exit)

(v) Drawing the full deployment of the pattern in the corresponding chart/timeframe

..Start all over again {(i)}


Chart Pattern Recognition Systems

These are some popular pattern recognition systems. Most systems are commercial and web-based, but there are also two free indicators for MT4.


1. Forex Trendy

Forex Trendy scans simultaneously 34 Forex pairs in 9 basic time frames Type: Trend Detector / Recognizing Triangles, Flags, and Wedges

■ Assets / Timeframes:  34 Forex pairs / 9 timeframes

■ Platforms: Web-Based System (delivers signals via SMS, Audible Alert, On-Screen, and eMail)

■ Price: $37 every four months

Forex Trendy

Forex Trendy scans simultaneously 34 Forex pairs in 9 basic time frames (from one minute to one month). The software recognizes trend patterns and generates trading signals. Forex Trendy is focusing exclusively on price action without the use of any indicator. It comes with a book (.PDF) explaining methods and software specifications.

  • No installs (web-based software, servers in Florida, US)
  • Live charts of the best trending pairs among 34 Forex pairs and 9 timeframes
  • Extra (free) indicator for recognizing Triangles, Flags, and Wedges on 34 Forex pairs and all time frames
  • Focusing on real price action by aiming to identify the master trend and to generate trading signals
  • Adapts any market conditions (flat and trending markets)
  • Recognizing Break-Out Patterns
  • Audible alerts, SMS alerts, email alerts, on-screen alerts

Forex Trendy Website


2. Autochartist Software

Autochartist is a very popular pattern recognition software that supports the automatic identification of basic chart patterns and formations.■ Type: Web-Based Pattern Recognition

■ Assets / Timeframes: All Financial Assets / All Timeframes

■ Platforms: Web-Based, MetaTrader-4 Plug-in

■ Price: Commercial Software / Price Depends on the Forex Broker

Autochartist is a very popular pattern recognition software that supports the automatic identification of basic chart patterns and formations.


  • Chart patterns and Fibonacci patterns
  • Includes ABCD patterns, Butterfly and Gartley formations
  • Analyze any financial asset in any timeframe
  • Autochartist can integrate with MT4 (via plug-in)
  • Trading alerts (visual and audio alerts)
  • Customizable searches
  • Autochartist PowerStats (information about the moves of Forex Pairs)

Forex Brokers offering the AutoChartist software:

FXCC (FX Central Clearing)


3. Pips Wizard Trend Recognition

■ Type: Trend Recognition / Trading Signals Generator

■ Assets / Timeframes: All Financial Instruments / M15 to D1

■ Platforms: MetaTrader-4 (Indicator)

■ Price: $87 one-off payment

Pips Wizard Pro

Pips Wizard Pro is an MT4 trend indicator designed for generating buying/selling signals. Pips Wizard presents two basic lines:

(i) The blue line, which indicates the buying areas

(ii) The orange line, which indicates the selling areas


  • Alerts via email, audible pop-ups, or SMS
  • Analyzes any chart on timeframes from M15 to D1
  • Pips Wizard works on any Currency Pair, Share, Index, Commodity, or Bond

The alerts contain the following information:

(i) Financial Instrument and the timeframe where the signal was recognized

(ii) Entry Price, Take-Profit, and Stop-loss Level

Pips Wizard Pro Website

4. Two Free Indicators/Plugins for MT4

■ Type: Plugins for MT4

■ Assets / Timeframes: Forex Assets / All timeframes

■ Platforms: MetaTrader-4

■ Price: Free

These are two free Chart Recognition Indicators for MT4:

(1) Flag and Pennant Indicator for MetaTrader 4

This MT4 indicator identifies Flag and Pennant patterns. The trend detection uses a linear regression, while the “breather” detection uses a channel.

(2) Pattern Recognition v1.0 for MT4

The indicator identifies the following patterns: Bullish Engulfing pattern, Three Outside-up pattern, Bullish Harami pattern, Three Inside-up pattern, Piercing Line pattern, Three White Soldiers pattern, and Morning Doji Star.

100% Free for Creating MT4 Indicators -Paid only for Creating EAs


Conclusions and Guidelines Regarding Chart Pattern Recognition

Learning to recognize and to use efficiently chart patterns can increase significantly your probabilities of entering profitable trades (up to 75%). Beginners should better use a friendly recognition system such is the ForexTrendy. More advanced traders can test their skills using a more sophisticated system such is the Autochartist software.

In any case, these are some key guidelines:

(i) Prepare with caution some set-ups in order to enter the right trades at the right time (timing is everything)

(ii) Don’t enter the trade before the pattern formation is properly confirmed

(iii) Trust pattern recognition in timeframes M30 and above (longer timeframes are more reliable)

(iv) Confirm that there are no controversial patterns in different timeframes of the same instrument

(v) Even if you can achieve 75% winning ratio via a pattern recognition system, never underestimate the remaining 25%. This 25% can easily blow up your account

(vi) It is highly recommended to implement tight money management, especially if you are not familiar with trading such patterns

(vii) Combine the findings of pattern recognition software with the readings of a reliable indicator (for example the MACD, and/or the MACD Divergences)



Trade Strategies: » Building MT4 EAs » Breakout Strategy | » Carry Trading | » Forex Correlations | » Forex Fundamentals


Forex Chart Recognition Systems (c)


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A trading system is a set of specific processes and rules that can help traders to optimize their trading process, or to develop automated trading strategies (EAs):

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