All About Price Action - page 4

 

Price Action Analysis Toolkit Development (Part 17): TrendLoom EA Tool

Price Action Analysis Toolkit Development (Part 17): TrendLoom EA Tool

Market analysis and entry confirmation methods differ among trend analysts. Many traders review multiple timeframes such as M1, M5 and M15 or H1, H4 and W1 to validate their entries and boost signal reliability. Instead of changing timeframes to gauge the overall trend, you simply press a button and get an on-time update or get updated automatically. Have you ever seen a lower timeframe selling, entered a trade, and then opened a higher timeframe chart only to discover a buying trend?
Price Action Analysis Toolkit Development (Part 17): TrendLoom EA Tool
Price Action Analysis Toolkit Development (Part 17): TrendLoom EA Tool
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As a price action observer and trader, I've noticed that when a trend is confirmed by multiple timeframes, it usually continues in that direction. What may vary is how long the trend lasts, and this depends on the type of trader you are, whether you hold positions for the long term or engage in scalping. The timeframes you choose for confirmation play a crucial role. Check out this article for a quick, automated system that helps you analyze the overall trend across different timeframes with just a button click or regular updates.
 

Price Action Toolkit Development (Part 18): Introducing Quarters Theory (III) — Quarters Board

Price Action Toolkit Development (Part 18): Introducing Quarters Theory (III) — Quarters Board

In our introduction to Quarters Theory, we began with the Quarters Drawer script, which is its first component. This script automates drawing quarter levels on a chart and features Boolean toggles to control the visibility of each level.
Price Action Toolkit Development (Part 18): Introducing Quarters Theory (III) — Quarters Board
Price Action Toolkit Development (Part 18): Introducing Quarters Theory (III) — Quarters Board
  • www.mql5.com
In this article, we enhance the original Quarters Script by introducing the Quarters Board, a tool that lets you toggle quarter levels directly on the chart without needing to revisit the code. You can easily activate or deactivate specific levels, and the EA also provides trend direction commentary to help you better understand market movements.
 

Price Action Analysis Toolkit Development (Part 20): External Flow (IV) — Correlation Pathfinder

Price Action Analysis Toolkit Development (Part 20): External Flow (IV) — Correlation Pathfinder

This article explains how to add currency correlation analysis to your trading toolkit. It offers practical insights and actionable strategies to enhance trading performance.
Price Action Analysis Toolkit Development (Part 20): External Flow (IV) — Correlation Pathfinder
Price Action Analysis Toolkit Development (Part 20): External Flow (IV) — Correlation Pathfinder
  • www.mql5.com
Correlation Pathfinder offers a fresh approach to understanding currency pair dynamics as part of the Price Action Analysis Toolkit Development Series. This tool automates data collection and analysis, providing insight into how pairs like EUR/USD and GBP/USD interact. Enhance your trading strategy with practical, real-time information that helps you manage risk and spot opportunities more effectively.
 

Price Action Analysis Toolkit Development (Part 21): Market Structure Flip Detector Tool

Price Action Analysis Toolkit Development (Part 21): Market Structure Flip Detector Tool

This EA tackles one of the toughest challenges in trading: false reversal signals. Choppy price action throws off simple pivot routines, trapping traders in whipsaws. The Market Structure Flip Detector solves this by converting ATR into a flexible bar-count filter. It ignores minor swings, captures only valid highs and lows, and then flags a bearish flip when a higher-high becomes a lower-high or a bullish flip when a lower-low turns into a higher-low.
Price Action Analysis Toolkit Development (Part 21): Market Structure Flip Detector Tool
Price Action Analysis Toolkit Development (Part 21): Market Structure Flip Detector Tool
  • www.mql5.com
The Market Structure Flip Detector Expert Advisor (EA) acts as your vigilant partner, constantly observing shifts in market sentiment. By utilizing Average True Range (ATR)-based thresholds, it effectively detects structure flips and labels each Higher Low and Lower High with clear indicators. Thanks to MQL5’s swift execution and flexible API, this tool offers real-time analysis that adjusts the display for optimal readability and provides a live dashboard to monitor flip counts and timings. Furthermore, customizable sound and push notifications guarantee that you stay informed of critical signals, allowing you to see how straightforward inputs and helper routines can transform price movements into actionable strategies.
 

Price Action Analysis Toolkit Development (Part 22): Correlation Dashboard

Price Action Analysis Toolkit Development (Part 22): Correlation Dashboard

Correlation is a statistical measure of how two variables move in relation to one another. Financial markets reflect the degree to which two instruments rise and fall together (positive correlation) or in opposite directions (negative correlation). Importantly, correlation describes relationships, not causation.

Price Action Analysis Toolkit Development (Part 22): Correlation Dashboard
Price Action Analysis Toolkit Development (Part 22): Correlation Dashboard
  • www.mql5.com
This tool is a Correlation Dashboard that calculates and displays real-time correlation coefficients across multiple currency pairs. By visualizing how pairs move in relation to one another, it adds valuable context to your price-action analysis and helps you anticipate inter-market dynamics. Read on to explore its features and applications.
 

Price Action Analysis Toolkit Development (Part 23): Currency Strength Meter

Price Action Analysis Toolkit Development (Part 23): Currency Strength Meter

In this article, we will develop an MQL5 tool that measures currency strength by analyzing each symbol’s performance across multiple pairs. This approach enables you to identify the strongest and weakest currencies reliably, empowering you to trade with greater confidence.
Price Action Analysis Toolkit Development (Part 23): Currency Strength Meter
Price Action Analysis Toolkit Development (Part 23): Currency Strength Meter
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Do you know what really drives a currency pair’s direction? It’s the strength of each individual currency. In this article, we’ll measure a currency’s strength by looping through every pair it appears in. That insight lets us predict how those pairs may move based on their relative strengths. Read on to learn more.
 
From your experience, what part of it actually worked for you in live trading?
Structure? Breakouts? Candlestick patterns?  
Would love to hear what gave you the most consistent results in real conditions
 

Price Action Analysis Toolkit Development (Part 24): Price Action Quantification Analysis Tool

Price Action Analysis Toolkit Development (Part 24): Price Action Quantification Analysis Tool

We’ve developed the Price Action Quantification Analysis EA for MetaTrader 5 to address this challenge. This Expert Advisor:

  1. Automatically scans a configurable number of recent bars for four widely respected price‑action patterns.
  2. Marks each detected pattern on the chart with arrows and labels, offering clear visual cues.
  3. Issues alert and records the subsequent bar’s pip movement to help you gauge signal strength.
  4. Provides built‑in backtest statistics by treating each pattern as a “trade” and calculating an overall win rate.

In the following sections, we’ll dive into the EA’s structure, walk through its customizable settings, and show how its performance metrics can sharpen your price‑action trading approach. Let’s start by exploring the specific candlestick patterns this EA watches for, examining each candle’s anatomy and the calculations used to pinpoint them.

Price Action Analysis Toolkit Development (Part 24): Price Action Quantification Analysis Tool
Price Action Analysis Toolkit Development (Part 24): Price Action Quantification Analysis Tool
  • www.mql5.com
Candlestick patterns offer valuable insights into potential market moves. Some single candles signal continuation of the current trend, while others foreshadow reversals, depending on their position within the price action. This article introduces an EA that automatically identifies four key candlestick formations. Explore the following sections to learn how this tool can enhance your price-action analysis.
 

Price Action Analysis Toolkit Development (Part 26): Pin Bar, Engulfing Patterns and RSI Divergence (Multi-Pattern) Tool

Price Action Analysis Toolkit Development (Part 26): Pin Bar, Engulfing Patterns and RSI Divergence (Multi-Pattern) Tool

In my previous article, I focused on identifying four candlestick formations: pin bar, doji, engulfing, and marubozu. These patterns were used to generate buy or sell signals immediately upon recognition. However, this approach sometimes produced false signals because the confirmation relied solely on pattern recognition without additional filters.

This article introduces a new tool that concentrates on two key patterns: pin bar and engulfing. These patterns are combined with RSI divergence to confirm each signal. RSI divergence is a tool I developed in the past as a standalone indicator based on price action. By integrating pattern recognition with RSI divergence, we create a more robust and powerful analytical method, offering more profound insights and improving trading accuracy through comprehensive price action analysis.

Price Action Analysis Toolkit Development (Part 26): Pin Bar, Engulfing Patterns and RSI Divergence (Multi-Pattern) Tool
Price Action Analysis Toolkit Development (Part 26): Pin Bar, Engulfing Patterns and RSI Divergence (Multi-Pattern) Tool
  • www.mql5.com
Aligned with our goal of developing practical price-action tools, this article explores the creation of an EA that detects pin bar and engulfing patterns, using RSI divergence as a confirmation trigger before generating any trading signals.
 

Price Action Analysis Toolkit Development (Part 27): Liquidity Sweep With MA Filter Tool

Price Action Analysis Toolkit Development (Part 27): Liquidity Sweep With MA Filter Tool

In this article, we will develop an MQL5 Expert Advisor designed to identify liquidity sweeps as they unfold. The EA begins by analyzing candles that break below or above previous swing points, then close back within the range, indicators of potential liquidity absorption. It incorporates optional filters, such as candlestick color changes or moving average confirmations, to ensure the signals align with your market bias. When a valid pattern is detected, the EA visually marks it on the chart with arrows or labels and generates an alert.

By the end of the tutorial, you will have a comprehensive, clear, and straightforward Expert Advisor highlighting liquidity sweeps immediately. You will learn how the EA detects these specific market patterns, how it employs filters to reduce false signals, and how it helps you stay aligned with the actions of the smart money. With this tool in your arsenal, you can anticipate institutional moves before they trap your stop-loss, providing a strategic advantage in any trading environment.

Price Action Analysis Toolkit Development (Part 27): Liquidity Sweep With MA Filter Tool
Price Action Analysis Toolkit Development (Part 27): Liquidity Sweep With MA Filter Tool
  • www.mql5.com
Understanding the subtle dynamics behind price movements can give you a critical edge. One such phenomenon is the liquidity sweep, a deliberate strategy that large traders, especially institutions, use to push prices through key support or resistance levels. These levels often coincide with clusters of retail stop-loss orders, creating pockets of liquidity that big players can exploit to enter or exit sizeable positions with minimal slippage.