MT4 does not have indicators that allow you to analyze charts using the Price Action Method by default.
This indicator is free and will assist you in tackling this problem. We recommend that you read the description of this indicator in our article.
1. Price Action: Why Use It
2. The PriceActionScaner indicator with its features
1. Why use Price Action Scaner
Price Action is a method of chart analysis that relies only on primary data, namely the market price, to make trading decisions. This approach recommends using price patterns as a basic tool.
Analyzing charts in the reverse way is possible by using technical analysis indicators and trading robots or Expert Advisors (EA). They analyze data about prices and volumes to generate trading signals.
These approaches can both be used for Forex trading and are quite effective. MT4 does not have any Price Action tools. However, it has a lot of indicators from the second group.
2. The Price Action Scaner indicator with its features
PriceActionScaner, a free MT4 indicator, analyzes the chart and plots certain price patterns (setups).
PriceActionScaner shows price patterns for all timeframes on the MT4 terminal. It is important to keep in mind the priority of the timeframes when using it. The shorter the timeframe, less market noise will affect signals and the signal will be more accurate.
This indicator contains 7 price action patterns.
DBHLC and DBLHC patterns (Double bar lows higher close & Double bar highs lower close) or bullish/bearish configurations.
It consists of two candlesticks with the same lows/highs in shadows but with a higher/lower closing cost of the second candlestick.
Bullish and bearish setups are usually associated with a strong trend and signify its continuation.
TBH&TBL is a pattern that has two bars with the same high/low price.
This occurs when two candlesticks with the same highs/lows in shadows appear on a chart. This is when one trend is replaced with another.
Market points are more reliable when multiple analysis tools suggest opening positions. The price activity indicator is more useful when combined with other indicators and the primary trading system.
You will need to adjust the parameters of the indicator when you first use it.
The PriceAction_Scaner indicator is a valuable addition to your Forex trading platform.
This indicator can draw formations for all time frames, making it more universal. The chart will show trading situations that promise profits regardless of whether you are using swing trading, scalping or long-term trading.