Predicting the next up or down candle is a strategy many of you learn. Especially if you are trading Binary Options this is even more important. Currently, there is no effective method to find this job.

Candlestick pattern 212, whose author ReyesWhite thinks that it is possible to predict the color of the next candle, ie the next candle is bullish or bearish. According to the author, this pattern predicts a 70% chance of the next candle. Sounds interesting, right?
According to the above illustration (taken from the original article), candle 1-2 increases continuously, candlestick 3 decreases, candlestick 4-5 increases continuously => completed pattern 212 => candle 6 decreases.

According to the author, you should always pay attention to the candle before the 1st candle. The candle before the 1st candle must have a different color from the 1st candle for a good pattern. Here are a few examples of incorrect setup from the author

Next is candlestick 212 patterns predicting the next correct bullish or bearish candle
The author also advised some more advice as follows
  • Use the 50 EMA and 200 EMA to filter the signals (I think only look for a 212 bullish pattern if the 50 EMA is above 200 and only look for a bearish 212 pattern if the 50 EMA is below 200)
  • The 212 patterns are only used to predict the 6th candle, not to predict the candles after the 6th day.

Indicator and EA code are available for the 212 model

This result of the EA 212_pattern_EA.mql is attached below
There are some EA (Expert Advisors - automated trading software also known as a trading bot)

Indicator named: _212_pattern.mq4, the other one is EA

Install the pattern indicator 212 on MT4 and open it on the eurusd H1 chart. The result, surprisingly, is true of 6/7 nearest models

Switch to the daily chart also of eur usd, the correct rate is 4/10.