Critical Points - technical indicator of trading levels for MT4
The Critical Points trading indicator is a technical analysis algorithm for MetaTrader 4. The essence of this technical indicator is to transform the accumulated history data. This tool provides an opportunity to detect various peculiarities and patterns in price dynamics, which are invisible to the naked eye.
The indicator consists of 10 lines indicating significant trading levels near which price reversals are possible. Five lines above the current price indicate overbought levels and a possible change in the direction of the price. The other five lines below the price level indicate oversold levels and a possible trend reversal near these levels. The further from the current price the level is, the more power and probability of a price reversal it has.
As an additional confirmation of the trading decision, the indicator has a built-in moving average algorithm that is displayed on the chart.
The Critical Points indicator has the following parameter settings:
MAPeriod. This parameter is the standard setting for a Moving Average, which determines its period.
MAType. This parameter also applies to MA correction and sets its type.
Fib1, Fib2, Fib3, Fib4, Fib5. The group of these parameters determines the calculated distance factor of the levels from each other. Fib1 - levels closest to the price, Fib5 - farthest.
Color1,2,3,4,5. These parameters define the line color for each level.
The ease of implementation of Critical Points helps you quickly understand how it works and learn how to navigate to its levels. On the other hand, this simplicity does not make it possible to build a full-fledged trading system based only on this indicator. We recommend using this algorithm as an auxiliary tool when building a trading strategy. It can serve as a good complement for calculating stop loss and take profit levels in your trading idea.