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.

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.

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 but had to edit it to allow for 5 decimal places.

Here’s how the trade turned out…

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.

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