How to Use the Sakata's Five Methods Indicator: Reading 8 Patterns and Signal Timing on MT5
Sakata's five methods is an analysis technique that reads market reversals and continuations from the sequence of candlesticks. However, going back through the chart to find patterns such as Sanzan (triple top) or Sanpei (three soldiers) by yourself takes a lot of effort.
MT5 can draw candlesticks, but it has no function for detecting patterns. Installing an indicator lets you automate this search.
This article uses the Sakata's five methods indicator distributed by EdgeGraph FX as an example to explain how to read the 8 patterns and when their signals appear.
We distribute a Sakata's five methods indicator, with a user manual, that automatically detects Sanzan, Sansen, Sanku, Sanpei and Sanpo
Get the Sakata's five methods indicatorTable of Contents
The 5 patterns of Sakata's five methods
Sanzan (three mountains / triple top) is a pattern in which three peaks of about the same height are followed by a decline. It has traditionally been considered likely to appear in top zones.
Sansen (three rivers / triple bottom) is the opposite: a shape that turns upward from a bottom zone.
With both, once price breaks the neckline connecting the peaks or the troughs, the move is said to accelerate from there.
Sanku (three gaps) is a shape in which three gaps open in a row. In an uptrend it is seen as a sign of overheating; in a downtrend, as a sign of oversold conditions.
Sanpei (three soldiers) is a shape in which three candles in the same direction appear in a row. It signals that a trend is under way.
However, Akasanpei (three white soldiers) in a high zone is sometimes seen as the rally running out of steam, and Kurosanpei (three black crows) in a low zone as a precursor to a rebound.
Sanpo (three methods) is a shape in which a large move is followed by several small candles and then a break in the same direction again. It is regarded as a pattern in which the trend continues after a temporary pause.
Sansen is also sometimes explained as the morning star or evening star. This indicator detects a shape with three troughs in a row as Sansen.
The 8 patterns detected and when their signals appear
The indicator splits the 5 patterns by direction, up and down, and detects 8 in total.
The 8 patterns detected by EdgeGraph FX's Sakata's five methods indicator and when each signal appears
| Pattern | Shape condition | When the signal appears |
|---|---|---|
| Akasanpei (three white soldiers) | 3 consecutive bullish candles, each higher than the last | When the candle closes |
| Kurosanpei (three black crows) | 3 consecutive bearish candles, each lower than the last | When the candle closes |
| Sanku Fumiage (three upside gaps) | 3 consecutive rising candles with gaps up | When the candle closes |
| Sanku Tataki-komi (three downside gaps) | 3 consecutive falling candles with gaps down | When the candle closes |
| Age Sanpo (rising three methods) | Long bullish candle, then small candles, then a new high | When the candle closes |
| Sage Sanpo (falling three methods) | Long bearish candle, then small candles, then a new low | When the candle closes |
| Sanzan (triple top) | Three peaks at almost the same level | 3 candles after the peak is confirmed |
| Sansen (triple bottom) | Three troughs at almost the same level | 3 candles after the trough is confirmed |
The six patterns of Sanpei, Sanku and Sanpo are judged when the candle closes. The signal appears the moment the next candle starts to move.
The candle where a pattern appears shows the pattern name as the signal. By default, bullish patterns are shown in lime green and bearish patterns in red.
This indicator works while you are logged in to an EdgeGraph FX account on MT5.
Not sure how to add an indicator to MT5? Check out this article!
Why Sanzan and Sansen are displayed late
Sanzan and Sansen are judged using a method called a fractal. It checks whether a candle is a peak by comparing it with the candles on its left and right.
Until the candles on the right have formed, you cannot tell whether that point was truly a peak. This causes a time lag of the number of candles you set before confirmation.
The default is 3 candles. If a signal appears later than the actual peak or trough, it is not a malfunction.
This number can be changed in the settings. A larger value delays confirmation further, but small peaks and troughs are no longer picked up.
Gaps between machine detection and textbook shapes
Patterns are judged with simplified, mechanical rules. The indicator does not verify fine conditions such as wick length or body ratio.
For this reason, a signal may sometimes appear on a shape that differs slightly from the one you saw in a textbook.
A signal is only a way of picking up candidates. Check it against the trend direction and other indicators.
Available Settings
When you add it to a chart, the input parameters screen opens.
Main settings of EdgeGraph FX's Sakata's five methods indicator and their default values
| Setting | Default | What it changes |
|---|---|---|
| Fractal window | 3 | Larger values delay confirmation of Sanzan and Sansen |
| Tolerance for “same level” | 1.5% | Larger values make Sanzan and Sansen easier to detect |
| Long-candle multiplier | 1.3 | How many times the average body of the last 20 candles a candle must be to count as long |
In addition, you can switch detection ON/OFF for each of the 5 patterns. You can also change the text color and size and whether alerts are on.
FAQ
Summary
With Sakata's five methods, you have to look for the patterns yourself on MT5. Installing this indicator finds the 8 patterns automatically and displays signals.
The thing to remember is that only Sanzan and Sansen are judged late. Because they are displayed after the peak or trough is confirmed, it is best to use them to confirm a shape after it has completed.
Even when a signal appears, the market does not necessarily move accordingly. Judge it together with the trend direction and other indicators.
EdgeGraph FX distributes this indicator free of charge, with a user manual.
If you want to automate another analysis technique born in Japan on MT5, check out this article!
We distribute a Sakata's five methods indicator, with a user manual, that automatically detects Sanzan, Sansen, Sanku, Sanpei and Sanpo
Get the Sakata's five methods indicator
