The Price Action Scanner forex Indicator for MT4 shows trend reversals and their continuation.
The price Action Scanner indicator creates price patterns on all mt4 timeframes of the forex MT4 interface. We should consider the importance of timelines before employing them. The entry signals will be more precise since less forex market noise will be considered and the greater the timeframe.
Working and purpose of Price Action Scanner Indicator
Price Action Scanner is a free MT4 indicator that analyzes the chart of the selected asset and automatically plots specific price patterns (setups) on it.
The indicator includes a total of 7 Price Action patterns:
DBHLC & DBLHC pattern.
This is Double Bar Lows Higher Close & Double Bar Highs Lower Close) or bullish/bearish setups. As a rule, bullish and bearish setups occur during a strong trend and indicate its continuation.
This is a (Two Bars High & Two Bars Low) pattern or two bars having the same High/Low price. It occurs when two candlesticks having the same highs/lows of shadows appear on the chart. This pattern can be seen at the price extremes when another replaces one trend.
In this case, the pattern indicates that buyers don’t have the strength to boost their activity further.
It usually gives signals during a strong trend. Depending on its position on the chart, it acts as a trend continuation or trend completion pattern.
The candlesticks must be long and have short shadows. Such a configuration of candlesticks indicates the high activity of Forex market participants. If this is the case, trading signals can be more reliable.
OVB pattern (Bullish pattern & Bearish pattern) or engulfing.
The template is made up of two candlesticks. The second candlestick has a lower opening price and a higher closing price (for the Buy trend; the opposite is true for the Sell trend) relative to the first one. Therefore, the pattern is called engulfing – visually, the second candlestick’s body completely engulfs that of the first one (not allowing for its shadows).
PPR (Reversal Pivot Point) pattern or reversal point.
This formation consists of three candlesticks. Usually, the pattern indicates potential trend reversal points rather than its continuation.
In this case, the third chart candlestick doesn’t close below the low or above the high of the second candlestick but hits a new extreme.
Pin-Bar pattern or pin-bar
A pin bar looks like a candlestick with a long shadow, and its opening and closing prices are close to each other. This pattern often acts as a trend-reversal signal. Due to its easy use and efficiency, it’s popular enough among Forex market participants.
WRB (Wide Range Bar) pattern or widening bar.
WRB highlights two bullish/bearish candlesticks simultaneously. The pattern often forms when the retracement move has been completed and signals the resumption of the major trend.
When you use the indicator for the first time, you’ll need to spend some time customizing its parameters.
The Price Action Scanner indicator can eventually be a valuable complement to your Forex trading system.
The indicator draws formations on all timeframes, which makes it more one-size-fits-all. So, no matter which approach you practice in trading (swing trading, scalping, intraday trading, or long-term trading), the chart will always display trading situations with the promise of profits.