PricePosition Indicator For MT4
Table Of Contents:
- PricePosition Indicator For MT4
- Trading ideas with the PricePosition Indicator For MT4
- PricePosition Indicator For MT4 - Buy Entries
- PricePosition Indicator For MT4 - Conclusion
The PricePosition Indicator For MT4 displays the relative location of price with respect to an angle section line. It also shows the current price (OHLC) and generates an alert when the angle section line changes its direction.
Trading ideas with the PricePosition Indicator For MT4
This indicator indicates to you the buy or sell sentiment by constantly referring to the angle line. If the price action is above this angled line then the market is good for looking for buy trades and when it is below then the market is good for looking for sell trades.
As you can see the price is trading above the 105.772 level as deduced from the angle line which is also displayed below the BUY display text. Through this indicator, we will have a good foundation to build on in terms of knowing which is the likely signal we will look for.
In this example, we will look for buy trades but we should not do so in a way that is devoid of further analysis to draw conclusive and probable trading motives.
The market shows that the market is bullish on the four-hour chart. This is great because we know that on the lower time frames we will exclusively look for suitable buy entires in the market to allow us to make probable trades.
PricePosition Indicator For MT4 - Buy Entries
The next step is for us to switch over down to the lower time frames. I will switch down to the fifteen-minute chart because this the chart that offers good trades for both short-term and medium-term trade perspectives.
The image below shows the fifteen-minute chart - what is perfect about this opportunity is that the indicator is also showing a buy-market. This coincides with the consensus that was confirmed on the higher time frame (four-hour chart).
The market has just initiated a breakout beyond the 106.297 region. This region is important because it is highlighted as a strong region of resistance therefore with strong resistance or support levels you will notice that these levels have a strong gravitational force (if you wish). So even though the market has broken out to the upside - the chances of it retracing back to the resistance level (106.297) is more than likely.
Just note that the market does not necessarily have to come back and touch this level. We are just looking for a movement and behavior around this price level which illustrates to us that the preceding resistance line has now evolved into a support line therefore buying would be in our best interests.
As soon as this level is reached or approached I will open a buy position. But you need to allow the bearish candles to close completely. You can even go as far as to wait for the bullish reversal patterns to form - such as bullish engulfing patterns or bullish Doji candlestick patterns.
These patterns tend to give a strong loss of bearish momentum thus opening the market for buying. So be on the lookout for such patterns. Sometimes you will notice that you need not have to wait for such patterns. The image below gives a hint as to why I am of that view.
You see that in the market there was a narrow channel created during the Asian session. This is an ideal pattern or price activity that happens from time to time because the market will breakout from this narrow channel to maybe create the low or high of the day. In the image above you will notice that there was a sharp accentuated V created after the market broke down and below the low of the Asian session.
This pronounced V is actually stophunt - it is not the intended direction for the better part of the next trading session or the rest of the day. Hence why you see that the market rallied up sharply and even broke the high of the Asian range. Therefore, the retest is enough for us to just open our trade. That V is your last swing low so our stop loss will go just below it - whereas our take profit target will be positioned the same distance above the entry point - this will give us a risk to reward ratio of 1 is to 1.
If you would like to generate more profits - you can just lock your profits as the market goes in your favor by trailing your stop loss. So as it rallies up progressively you can take some profit and let the market run with your trade when you have your stop-loss trailed into the profit zone.<
PricePosition Indicator For MT4 - Conclusion
The PricePosition indicator is one indicator that has one of the most simple designs because it is easy to use and easy to interpret. It is also a useful tool.
It adds a lot of depth to your analysis so that you do not get into trades without taking diligent analytical steps. In this example, I have highlighted a way in which you can use this indicator to your advantage without complicating your pre-existing ways of analyzing the market.