Price action system/indicator
Contents
The analysis of real price patterns và actions of large players make a basis of successful trade without indicators.
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Key provisions of a technique
Various events & indicators can be catalysts of the market movement, but the trader sees và analyses only the kết thúc result as all of them are already considered in dynamics of the price. Today Price kích hoạt indicators Forex use the shift of balance of market demand/offer & also market psychology – the conflicts of interests between small participants of the market và market makers.
Price Action patterns are special schemes of trade bars (the Japanese candles) which characterize key market situations not only for the purpose of definition of the current direction, but also for assessment of the most probable reaction – a turn or continuation of a trkết thúc.
Indicators Price kích hoạt are developed for all trading platforms, are installed by a standard way, analyse the price chart và designate models by standard names, which have to be included in the analysis mechanism.
Main patterns of PA
There are a lot of PA models are described, it is difficult lớn reveal everything on graphics especially as sometimes they appear nearby & contradict each other. It is especially dangerous if to lớn consider that Price kích hoạt indicators shall specify khổng lồ the trader the most profitable direction of an entrance to lớn the market.
There are no universal tools for recognition, and popular options show the strongest combinations, such as PIN-Bar, Internal Bar & Model of Engulfing − graphic schemes of these patterns are shown below.
After emergence of Mã Sản Phẩm it is enough lớn open the schedule of an asphối, to check a trover & presence of svào price levels then khổng lồ make the trade decision.
On the periods below H1 the use of any RA patterns is ineffective!
The name & structure of parameters differ, but any Price kích hoạt indicator has lớn include without fail the following settings:
barsback − the number of bars for identification of a PA pattern;M5-MN1− an opportunity lớn switch off tìm kiếm of patterns on a part of time frames;arrows, arrowform size, bullarrow, beararrow — the mode, the kích thước, color of arrows at emergence of a phối up;standard names of PA patterns for identification.Irrespective of the visual khung − graphic, signal or oscillator − indicators Price Action are not redrawn!
Indicator Three-in-One
The system consists of three MTF_IB_SCAN indicators («Internal bar»); MTF_OB_SCAN («Engulfing model»); MTF_PB_SCAN («PIN-bar»).
In case of appearance of a PA phối up on currency pair (or any other asmix − raw materials, stocks) on the periods from M5 lớn W1 the indicator will signal about it. Arrows of the appropriate direction for determination of entry point appear on a graphics.
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PA oscillator
For MetaTrader 4(5) there are versions of Price kích hoạt trading indicators which output information in the lower window, have no information panel & work only at the current period. The analysis of mix ups is in that case we carried out on indicator columns.
The red column indicating a negative tendency, green − the growing trover. The analysis is carried out from the first column from the zero line.
Price Action Forex Indicator InfoPanel
We specify several trade assets in the Symbols parameter, for example, with EURUSD, GBPUSD, USDJPY, we choose a way và type of sorting of the table.
Further we adjust the PIN bar in which the main MaxBodyTailRatio parameter – the maximum ratio of a body khổng lồ a tail.
After the adjusting of DoubleBar and Model of Engulfing we receive on the price schedule the table of the relevant PA models in which the asmix symbol, time frame, the directions (bull/bear), names of a pattern, «age» of bar, the closing price after a thiết đặt is visible.
CandleStiông xã Pattern Indicator
The chất lượng expert who automatically distinguishes more than 30 patterns of the PA system, at least, such number of them are contained in an indicator algorithm.
It is required a real experience of the trader on PA technique, because the CPI indicator shows not only the most productive models, but also weaker which demvà obligatory confirmation of trade signals. At detection of a pattern there is a color arrow with the name of the formed formation, and the indicator gives a sound signal.
The CPI indicator has well proved on small time frames from M15 to lớn H1, including on the weak volatility assets. It is desirable that there were not less than 20-30 bars between patterns of one direction.
Several practical remarks
Only patterns in a turn zone is considered a trade signal therefore tìm kiếm of the PA models should be begun with determination of strong price levels.
Signals of PA indicators can"t be trusted during the periods of the speculative or thin market.
It is necessary lớn place StopLoss on three-four sizes of the average created candle from a pattern, including a toàn thân & a shadow, & to expose TakeProfit at the following operating cấp độ. An example of effective system on the basis of Price kích hoạt − the strategy of Jarroo.
The PA technique has no effect of delay, but it is impossible to construct full strategy only on Price Action Forex indicators. Use of Price Action is allowed only in a phối with ordinary trend tools, for example, in moving averages & options of turning levels.
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