November 23, 2022Posted by: Forex Wiki TeamCategory: Free Forex EA
Price Action Scanner Indicator Review
Trend reversals and their continuation are shown by the Price Action Scanner Indicator for MT4.
On all of the forex MT4 timeframes, the price Action Scanner indicator generates price patterns. Timelines should only be used after careful consideration of their significance. Less forex market noise will be taken into account, and the longer the timeframe, the more precise the entry signals will be.
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How and why the Price Action Scanner Indicator functions
The free MT4 indicator Price Action Scanner analyzes the chart of the chosen asset and automatically plots particular price patterns (setups) on it.
There are a total of 7 Price Action patterns in the indicator:
Pattern DBHLC & DBLHC
This is a bullish/bearish setup (Double Bar Lows Higher Close & Double Bar Highs Lower Close). Bullish and bearish setups typically occur during a strong trend and signal the continuation of that trend.
Two bars with the same high and low price are known as a “Two Bars High & Two Bars Low” pattern. It happens when two candlesticks with identical shadow highs and lows emerge on the chart. When one trend is replaced by another, this pattern can be seen at the price extremes.
The pattern in this instance suggests that purchasers lack the power to increase their activities.
It typically sends indications when there is a strong trend. It functions as a trend continuation or trend completion pattern depending on where it is located on the chart.
Long candlesticks with brief shadows are required. A set of candlesticks in this arrangement shows that traders on the forex market are very active. If so, trading signals may be more trustworthy.
Engulfing or the OVB pattern (Bullish and Bearish pattern)
Two candlesticks make up the template. In comparison to the first candlestick, the second one has a lower opening price and a higher closing price (for the Buy trend; the converse is true for the Sell trend). The second candlestick’s body entirely engulfs the first one, which is why the pattern is known as engulfing (not allowing for its shadows).
Reversal point or PPR (Reversal Pivot Point) pattern
There are three candlesticks in this arrangement. Instead than signaling the continuation of the trend, the pattern typically shows potential turning moments.
In this instance, the third chart candlestick reaches a new extreme rather than closing below the low or above the high of the second candlestick.
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.
Widening bars or the WRB (Wide Range Bar) pattern
Two bullish or bearish candlesticks are simultaneously highlighted by WRB. The pattern frequently appears after the retracement move has ended and denotes the continuation of the main trend.
You must spend some time setting up the indicator’s parameters before using it for the first time.
Eventually, the Price Action Scanner indicator may prove to be a useful addition to your Forex trading strategy.
The indicator generates forms across all timeframes, making it more universal. Therefore, the chart will always show trading situations with the potential for profits, regardless of the style of trading you employ (swing trading, scalping, intraday trading, or long-term trading).
Price Action Scanner Indicator Free Download
We highly recommend trying the Price Action Scanner Indicator with ICMarket demo account. Also, familiarize yourself with and understand how this system works before using it on a live account.
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Price Action Scanner Indicator MT4 Free – Forex Wiki Trading
Trend reversals shown by the Price Action Scanner Indicator for MT4. On all timeframes, the price Action Scanner indicator generates price patterns.