PriceAction indicator Indicator For MT4
Table Of Contents:
- PriceAction indicator Indicator For MT4
- Trading ideas with the PriceAction indicator Indicator For MT4
- PriceAction indicator Indicator For MT4 - Buy Entries
- PriceAction indicator Indicator For MT4 - Sell Entries
- PriceAction indicator Indicator For MT4 - Conclusion
The PriceAction indicator Indicator For MT4 is a very powerful tool that allows you to detect the reliable price action signals in the price charts. Blue bars in the indicator curve shows inside bar up. The green and red bar shows bullish and bearish pin bar respectively. On the contrary the dark green color shows the engulfing pattern at the critical trading zones.
The PriceAction indicator Indicator For MT4 analyzes the potential candlestick patterns in the chart. The new price action traders always complain that it is very hard to find the potential PA bars at the right time. They become confused when the chart shows price action patterns based on multiple candlesticks.
To solve this problem, the professional investors suggest using the price action indicator. This indicator draws colored bars on the chart based on the different formations of the price action signals. The lime color bars tell us we have a bullish pin bar and the red color bar suggests a bearish pin bar. The blue and orange bar tells us about the inside bar up and down respectively.
The price action indicator can also show us the engulfing patterns. Dark green tells us about the bullish engulfing pattern and the light coral tells us about the bearish engulfing pattern. When the retail traders get such bars from the indicator reading, they can easily boost their confidence level in their trade execution. But to earn enough money with confidence, a trader has to focus on the performance of their trading edge. If the success rate of the system is less than 65%, you have to revise your trading method.
Trading ideas with the PriceAction indicator Indicator For MT4
Every successful trader knows the importance of the system. To the experienced traders, an indicator is nothing but a simple tool that helps them to analyze the potential trade setup in a simple format. For instance, the Price Action indicator will show you 6 reliable candlestick pattern formation with six different colors.
But these six reliable candlestick patterns are often formed in the middle of nowhere. So, if you fail to analyze the critical support and resistance level with a high level of precision, you should not be expecting to win the trade by using this trading edge. To take the reading from the Price Action indicator in a more stable way, you should learn about the basic formation of the pin bar, inside the bar, and the engulfing pattern. These six patterns are highly reliable and it provides an extreme level of confidence to the retail traders.
But don’t take too much risk after spotting such patterns at the important support and resistance. To improve your performance, you have to know the proper way to limit the risk profile. Once you strategically do that, it will be an easy task to take the trades’ in the most critical zone. Now let’s move to the trade execution segment.
PriceAction indicator Indicator For MT4 - Buy Entries
The bullish pin bar is a very common pattern. In general, you have a small body and a long wick in the pin bar setup. The second pattern is the inside bar pattern. For the bullish inside bar pattern, you should see a small candle inside a long candle. The small candles are also known as the baby candle and the big candle is known as the mother candle.
The third pattern is the bullish engulfing pattern. The first candle is a strong bearish candle which is the part of the last bearish movement of the price. The second candle will be a strong bullish candle engulfing the first candle. As you spot any of these patterns at the important support level, you have to look for the lime, blue, or dark green bar in the chart.
Once you spot such a bar from the price action indicator, you can analyze the TP and SL levels. If the risk to reward ratio is better than 1:2, you can open the new long trade with strong confidence.
PriceAction indicator Indicator For MT4 - Sell Entries
The bearish pin bar is a very popular price action signal. It is formed with a small body and long tail pointing to the north side of the chart. In general, this pattern is spotted when the price rejects a critical resistance level. The inside bar pattern is similar to the bullish inside bar pattern. But in this case, the breakout will take place on the downside.
The bearish engulfing pattern is found at the top of an uptrend. The first candle is bullish but the second candle is bearish and it engulfs the first candle. When you spot these patterns, the price action indicator should show red, orange, or light coral patterns in the chart. As you spot such a pattern in the chart, you can easily take the trades.
But the news traders should be careful about the trading time frame. Trying to take the trades in the lower time frame based on the price action indicator imposes a great threat. Without having a strong risk management plan, it will be a tough task to make money and you might lose most of the trading capital due to a small mistake. So, master news trading before you take the data from the price action indicator.
PriceAction indicator Indicator For MT4 - Conclusion
News trading is only suitable for retail traders who have more than 1 year of experience. Being a new participant in the market, you can easily learn some classic trading methods. For instance, knowing about the six candlestick pattern stated in this article is a very easy task. And when you will take the confirmation from the price action indicator, you will become more confident.
But such setups often fails due to the release of major economic news. If you want to keep your trading account protected, you must learn to take the trades with low risk. First of all, study the impact of the key news so that you can take better decisions without having any major problems. The news analysis is not so easy to learn. You have to relate the news data with the technical format of your trading edge. And then you have to sync it with the reading of the price action indicator.
The overall process might take some time but you can easily master this technique by using the demo account. As you become good at analyzing these three essential factors, you can start taking the trades during the key news. But lower the risk to 1% since the market is extremely volatile in such a state.