My Price Action Indicator

My Price Action Indicator is a simple tool for analyzing market buying or selling pressure. The tool can be used to handle open trades or as a trading strategy.

What is the My Price Action Indicator?

My Price Action is a custom indicator that identifies key candlesticks that may suggest a significant price change. The indicator provides various signs. To begin, it denotes lines above and below the candlesticks. The color of the arrows also shows price action.

The arrow indications, however, cannot be used as a stand-alone signal for buying or selling. As a result, you may need to learn about the various indicators and how to read them before using them in your trading.

Setting up the My Price Action Indicator
Setting up the My Price Action Indicator

My Price Action Strategy

The indicator’s main concept is based on the shadows of the candles. When a candle casts a shadow from below or above, you understand the meaning. It makes it simpler to identify buying or selling pressure at a given time.

On the downside, for example, you may notice a lengthy shadow. It indicates that buying pressure is growing. In such a case, you could search for a long opportunity.

Buy Signal

The following could be your checklist for a buy trade:

  • When the asset is in a bullish trend.
  • When the indicator displays a pink upward arrow and an “NLB” sign below the candlesticks.

Once these events occur:

  • You could open a buy position after you confirm your entry with bullish candlestick patterns.
  • You could set your stop loss just below the nearest swing low.
  • You could set your take profit at the nearest resistance zone, or you could exit trade when the indicator displays a green downward arrow and an “NLS” sign above the candlesticks.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
My Price Action Indicator Buy Setup
My Price Action Indicator Buy Setup

Sell Signal

The following could be your checklist for a sell trade:

  • When the asset is in a bearish trend.
  • When the indicator displays a green downward arrow and an “NLS” sign above the candlesticks.

Once these events occur:

  • You could open a sell position after you confirm your entry with bearish candlestick patterns.
  • You could set your stop loss just above the nearest swing high.
  • You could set your take profit at the nearest support zone, or you could exit trade when the indicator displays a pink upward arrow and an “NLB” sign below the candlesticks.
  • For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
My Price Action Indicator Sell Setup
My Price Action Indicator Sell Setup

My Price Action Pros & Cons

Pros

  • My Price Action Indicator can be used by traders to predict potential price reversal zones.
  • The indicator can be used to detect the probable trend direction.

Cons

  • My Price Action Indicator may sometimes mistake a trend reversal for a trend correction, and vice versa.
  • This indicator may not meet the trader’s expectations in a narrow-ranging market on smaller timeframes.

Conclusion

My Price Action Indicator could be worth including in your trading arsenal. A good forex indicator may boost your chances of success. Nonetheless, keep in mind the importance of having realistic expectations. My Price Action Indicator, like any other technical analysis tool, is not capable of providing 100% accurate signals. As a result, this forex indicator occasionally generates false signals. Its performance will be highly variable depending on market conditions. You are free to create your own trading system based on it.

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