The guys at Pipnotic have taken the challenge to make an MT4 indicator to help the price action trader conquer the currency markets. Specialising in Forex, trading psychology and developing Price Action Pro, the only MT4 indicator the price action trader will ever need, Pipnotic have managed to create a tool that appears to have greatly increased the chances of success in the hands of the disciplined trader. Let’s have a closer look at what they are up to.
For those of you who are unfamiliar with the concept of price action, simply put, it’s the study of the price behaviour for a given financial instrument. Many traders plaster their charts with different types of indicators in an attempt to convince themselves that when all of them are pointing in the same direction, one can simply enter a trade. The problem with this approach is that due to the nature of lagging indicators, by the time they are all lined up, the optimal trade entry has already come and gone, introducing a great deal of risk associated with the given trade. Studying price action is the act and the art of looking at price, and making trading decisions based on recognisable patterns such as levels of support and resistance (e.g. pivots, previous highs/lows, Fibonacci levels).
After having read the Price Action Pro installation and Configuration Guide, one can quickly gauge the nature of what this particular indicator is doing and how it can be used. I have long been interested in challenging programming tasks, and this area in particular seems to be one many have tried to master for years. High Frequency Trading (HFT) is a very large topic and one some of the largest financial institutions in the world invest millions in developing strategies within. Neural Networks (NN) may the the perfect fit for this kind of programming task and perhaps one I may delve a little into in the future.
The guys at Pipnotic are busy with their MT4 indicator and promise more useful functionality. I’ll keep my eye on them and continue to explore this topic for myself.
Thanks for reading.