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Improved Point & Figure for MetaTrader 4

If you’ve never heard of Point & Figure charts before then this brief article will not be sufficient to fill that gap. You should take a look at Forex Factory or do a Google on it to get more information.

point and figure

That said the basic idea is quite simple and makes a great deal of sense and I’ve found a great indicator to make it even easier with MetaTrader 4.

Point & Figure charts allow you to see the movement of a currency in terms of price rather than time, which is what we’re used to with candlesticks etc. When price moves a pre-determined amount of pips a new box is drawn and if it moves against us a pre-determined amount of pips boxes are then drawn in the oppoiste direction.

An image may be useful here so take a look at this trade I took a few days ago and hopefully it should become clearer.

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From the image above you can see where I entered the trade based on one of the patterns that P&F uses. This great indicator gives alerts and warnings as patterns are forming and when they become fully formed. This was the most common, and to be honest the only one I really look for, the “Triple Top/Botton”. When price breaks by one box you enter with a stop loss placed at the top/bottom of the set of blocks that created the triple top/bottom plus one box. Take profit is up to you but I have just been using a straight 1:1 risk reward.

I’ve only been testing this particular indicator for the past two weeks which isn’t really enough to get too excited about but I must say the results have been impressive which is why I wanted to share it with you. I found the indictor on Forex Factory but had to edit it to allow for 5 decimal places.

Here’s how the trade turned out…

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Another simple, stress free trade that turned out profitable. Of course not every trade will be a winner but it’s amazing how just observing movements in terms of price and removing the distraction of time can give you a much better ‘feel’ for the currency. If you feel the price isn’t going the way you want it to you can just bail out with a small profit or minimal loss and wait for the next trade.

Here’s the indicator for you to test if you’re interested.

Point & Figure Inidcator for MetaTrader

I place it on a 1 minute chart with a box setting of 5 and a reversal of 3.

Good luck and hopefully you’ll enjoy success with this indicator.

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Category: Forex Articles, Forex Trading

About the Author (Author Profile)

Steve Fleming has been a professional programmer and Internet professional for over 15 years. AutomatedTradingSoftware.com is a way to empower the non-programmers and offers a FREE 5 day E-course showing how to build an EA (expert advisor). Steve also offers his mql programming services at very competitive rates and has programmed many, many strategies both for himself and his ever growing list of satisfied clients.

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