Price Action indicator
The Price Action Oscillator indicator is a rather interesting technical analysis tool that complements the system quite well, allowing the trader to obtain an additional trade signal filter. It is equally relevant for beginners and experienced speculators alike, especially in situations where it is difficult to determine the existence of a particular pattern.
This tool is not self-contained. That is, only the Price Action Oscillator indicator should not be used. It is necessary to possess the theory of patterns on this system, as well as to be able to determine the levels of support and resistance on which these models are formed.
Characteristics of the indicator
Trading Platform: Metatraider 4
Timeframes: from Н4 and above
Currency pairs: the indicator works with any currency pair
Features in installation
To set this market Forex indicator, you need to open a trading platform.
The File menu is located in the upper right corner.
Click Open Data Catalog.
A folder window opens.
In this window, you must open the MQL4 folder and then the Indicators folder.
Here the indicator is copied, after which the trading platform Forex platform is reloaded. The Price Action Oscillator indicator is now set and ready for use. Before working with the indicator, it is recommended to carefully study the Price Action patterns, as they are the basis of the system.
Entry and Exit Rules
This indicator, as noted above, is an auxiliary indicator. Therefore, its signals should be perceived only in a complex, if there are entry points on the Price Action system (naturally, taking into account levels of support and resistance).
The strongest signal is the first crossing of the zero mark indicator by the bar. At the same time, Forex price chart should show the price action model at the level of resistance or support. Only then can you consider opening an item.
On the other hand, there are situations when the signals of this indicator are rather weak. This means that the appearance of a bar of the opposite color has no further continuation. In such situations, it is necessary to rely even more on setapes and levels. At the same time, it is important to monitor the development of the trend. As soon as a signal appears that it may end, it is recommended that you close the transaction.
Peculiarities of operation with indicator
When working with the Price Action Oscillator indicator, there may be situations where there is no trend line in the market. At such moments it is better to refrain from trading, as the price action methodology is designed to analyze the dynamics of price changes. Therefore, the use of the indicator at these points will not be quite correct.
Working with the indicator is best during directional movements. In addition, potential profits increase significantly during such periods. Most importantly, it is competent to analyze the situation and remember the need to identify setups and find levels of support and resistance.
The Price Action Oscillator indicator is an excellent assistant to any Forex trader who is going to work with this technique. It is not self-contained, but it is by no means a disadvantage, as the instrument is really unique.