Discussing the article: "Introduction to MQL5 (Part 15): A Beginner's Guide to Building Custom Indicators (IV)"
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Check out the new article: Introduction to MQL5 (Part 15): A Beginner's Guide to Building Custom Indicators (IV).
In this article, you'll learn how to build a price action indicator in MQL5, focusing on key points like low (L), high (H), higher low (HL), higher high (HH), lower low (LL), and lower high (LH) for analyzing trends. You'll also explore how to identify the premium and discount zones, mark the 50% retracement level, and use the risk-reward ratio to calculate profit targets. The article also covers determining entry points, stop loss (SL), and take profit (TP) levels based on the trend structure.
The indicator will identify a low, high, higher low, and higher high to indicate an uptrend for buy signals. The 50% retracement level between the higher low and higher high will then be determined. A break in the structure above the higher high will initiate the entry, and the 50% retracement level will serve as the stop loss. A 1:1 risk-reward ratio will be the goal of Take Profit 1, and a 1:2 ratio will be the goal of Take Profit 2.
To identify a downtrend for sell signals, the indicator will first identify a high, low, lower high, and lower low. It will then compute the 50% retracement between the lower high and lower low. TP1 will be 1:1, TP2 will be 1:2, the stop loss will be at the 50% level, and the entry will take place on a break below the lower low.
Author: Israel Pelumi Abioye