The Price Action Scanner Forex Indicator is an automatic candlestick-pattern detector developed for MT4 users. It captures potential price structures that signal upcoming market trends.
The Price Action Scanner Forex Indicator closely tracks the price chart formations and highlights potential patterns using vertical boxes in three different colors. The blue and red boxes signal bullish and bearish patterns, respectively. Besides, the box in gold color indicates a neutral pattern.
Furthermore, the gold color box outlines the neutral candlestick patterns, which indicates indecision over the upcoming trend. Therefore, once you encounter such candle structures, wait for a clear price breakout for further confirmation of the fresh market momentum.
Since the Price Action Scanner Forex Indicator only highlights precise chart patterns, we recommend you consider additional trend-filtering tools before confirming an entry. Technically, moving averages and support/resistance are an ideal match for this indicator.
Buy Signal Generation With Price Action Scanner Forex Indicator
We’ll indeed look for a buying opportunity whenever the indicator plots a bullish price action pattern signal. However, the signals may not work as usual during choppy or overly volatile markets. Therefore, it is essential to consider other charting tools or trend indicators for verifying signal validity.
In the above chart, the price forms a higher low at the bottom. At the same time, the Price Action Scanner Forex Indicator plotted a blue box, indicating a bullish chart pattern. Upon receiving such confirmation, we can enter long at the break of the signal box high.
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Sell Signal Generation With Price Action Scanner Forex Indicator
The price rejecting a significant resistance at the top while the indicator shows a bearish chart pattern is an ideal sell confirmation like the above chart.
This trade setup confirms the price rejection at key resistance and the downtrend signal. So, we can place a sell order right below the low of the red box.