Price Action All In One

22. Okt.

This indicator represents the most advanced level of price action indicators, incorporating six useful features: traditional gaps, shadow gaps, bar counting, moving averages, previous values, and IO pattern matching.
When I refer to price action, I mean the teachings of Dr. Al Brooks.

While you can find these features in other indicators, mine is more advanced. The default settings are designed to work on a 5-minute timeframe, but you can also use this indicator on other time periods if you prefer.

Gaps

• Traditional Gaps: Occurs when the lowest price of a bar is higher than the highest price of the previous bar, or the highest price of a bar is lower than the lowest price of the previous bar.
  
• Shadow/Tail Gaps: Occurs when the lowest price of a bar is higher than the highest price of the second last bar, or the highest price of a bar is lower than the lowest price of the second last bar.
  

Gaps indicate strength, and consecutive gaps in one direction are characteristic of a strong trend. They offer a perspective on the strength of a trend, signifying that limit orders on one side are at a loss with no opportunity to exit at breakeven. Can bulls or bears create gaps? Are the gaps they create filled, or do they remain open?


Traditional Gaps & Shadow/Tail Gaps

Bar Counting

• The ability to use different timeframes (e.g., to determine the minute within an hour or the hour within a week).
  
• Consistent display of 1; in other indicators, if you set intervals to 2, you see 2, 4, 6, etc., or 1, 2, 4, 6. In my indicator, you will see 1, 3, 5, etc.
  

In intraday trading, certain specific times are more important than others. For example, a form of reversal is more likely to occur at the midpoint of the trading day (if there are 80 candles in a day, the midpoint is at the 40th candle).

This doesn't mean you should make reversal trades at the 40th candle. The bar count feature simply reminds you of the current time, helping you gauge how long until the trading day ends. For instance, if there are 80 candles in a day and you're an intraday trader, you probably shouldn't make a swing trade at the 70th candle because there are only 10 candles left until the close—likely not enough time for a swing to develop.

Additionally, if you trade on a 5-minute timeframe, seeing candles numbered 3, 6, 9, etc. indicates the close of a 15-minute candle. This means that in addition to 5-minute timeframe traders, 15-minute timeframe traders will also pay attention to these candles, making them more significant. For the same reason, the 12th candle is crucial, as its close also marks the close of an hourly candle.


Day Time Frame & Week Time Frame

Moving Averages
Provides three EMAs. You can set different timeframes and choose between continuous or discrete modes.

Moving averages are excellent tools for determining trends. The 20 EMA is particularly popular, which increases its significance. Traders using different timeframes, such as 5-minute, 15-minute, and 1-hour, all utilize the 20 EMA. This indicator allows you to see what traders on 15-minute and 1-hour timeframes are observing, even when you're on a 5-minute timeframe.

Once again, the default settings of this indicator assume that the user is trading intraday on a 5-minute timeframe. However, if that's not the case, you can easily adjust the moving average periods. For instance, if you trade on a 1-hour timeframe and want to display the 4-hour and daily moving averages on your chart, this can be done effortlessly.


5m 20, 15m 20 & 1h 20

Previous Values
Features three previous value displays. You can set their sources and timeframes independently and define the range for all previous values.

For intraday trading, marking the previous day's high, low, and close prices can be crucial. While some other indicators provide this feature, mine does it better. You can set different timeframes and choose various sources. For example, you might want to display the average of (O+H+L+C)/4 for the last week.

In addition to setting the timeframe and source, you can also configure the display range:

• All: This will show the data in all positions. For example, you can see the high price from two days ago on yesterday's chart.
  
• Today: This will only display the previous day's high price on the current day's chart.
  
• Timeframe: This will display the data based on the specified timeframe you set.
  

Last Week High, Last Day Close & Low(Timeframe Display)

IO Pattern Matching
More advanced than other IO pattern matching indicators. For adjacent IIs, it merges to display as III, IIII, and so on. The same applies to OO patterns. Additionally, it automatically merges adjacent IOI and II into IOII, and adjacent OO and IOI into IIOI.

• II Pattern: This refers to two consecutive inside bar candles. On a lower timeframe, the II pattern forms a converging triangle, which is a breakout pattern. The II pattern could also potentially become a final flag, which is the last flag in a trend.
  
• OO Pattern: This refers to two consecutive outside bar candles. On a lower timeframe, the OO pattern forms an expanding triangle. You can use the OO pattern similarly to how you would use an expanding triangle.
  
• IOI Pattern: This pattern occurs when the first candle is contained within the second candle, and the third candle is also contained within the second candle. This is a breakout pattern and could similarly represent a terminal flag in a trend.
  

The appearance of II, OO, or IOI patterns does not necessarily mean you should make a reversal trade. These patterns are meant to mark potential moves in a lower timeframe within the current cycle, providing a new perspective on the market and reminding you to stay vigilant.

You shouldn't look for IO patterns in a tight trading range. There are many IO patterns in a tight trading range, but they don't hold much significance.


II, OO & IOI

23. Okt.

Versionshinweise

The indicator now supports calculating previous values based on the chart. This means if you use an RTH chart, select the previous value as the highest price, and enable the chart-based option, you will get the RTH high rather than the ETH high.