New article: Price Action. Automating the Inside Bar Trading Strategy
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New article Price Action. Automating the Inside Bar Trading Strategy has been published on mql5.com:
The article describes the development of a MetaTrader 4 Expert Advisor based on the Inside Bar strategy, including Inside Bar detection principles, as well as pending and stop order setting rules. Test and optimization results are provided as well.
All Forex traders come across the Price Action at some point. This is not a mere chart analysis technique but the entire system for defining the possible future price movement direction. In this article, we will look at the Inside Bar pattern in details and develop an EA for tracking the Inside Bar and performing trades based on the pattern.
The Price Action is a non-indicator price movement detection method using simple and complex patterns, as well as auxiliary chart elements (horizontal, vertical and trend lines, Fibo levels, support/resistance levels, etc.).
At first glance, the method may seem rather complicated but actually this is not the case. The method is gaining popularity from year to year, since its advantages are evident, for example, when compared to the methods involving technical indicators.
Inside Bar
Inside Bar is a bar having its body and wicks contained entirely within the range of the previous (mother) bar. The inside bar's High lies lower and Low is located higher than the mother bar's ones. Mother and inside bars form a pattern considered to be a potential entry signal.
This is a two-sided pattern, since it may indicate either a reversal, or a trend continuation.
Fig. 2. Inside Bar pattern layout
Author: Dmitry Iglakov