Photon Price Action Scanner

The Photon Price Action Scanner indicator automates the detection of over 15 candlestick patterns while applying multiple confirmation layers to filter out market noise. By combining pattern recognition with trend alignment, volume-weighted strength scoring, and an adaptive neural bias filter, the tool aims to identify high-probability reversal and continuation setups.

Usage

The indicator can be used to identify specific price action setups across various timeframes. Users can choose to display all detected patterns or only those that pass the internal confirmation filters.

• Reversal Trading: Look for "BUY" or "SELL" actions appearing at key support or resistance levels. Confirm that the Neural Bias aligns with the trade direction before entry.
• Trend Continuation: Use the dashboard to identify the prevailing trend and prioritize bullish patterns in uptrends (or bearish patterns in downtrends). "Ultra" signals represent the highest conviction continuation setups.
• Noise Reduction: By enabling filters like "Velocity Confirmation" and increasing the "Pattern Strength Filter," users can remove low-conviction signals and focus on setups with significant momentum and volume.

Details

The indicator utilizes a multi-layered approach to validate price action:

• Pattern Strength Scoring: Calculates a value based on the ratio of current volume to average volume and the relative body size of the candle.
• Adaptive Neural Bias Filter: A custom momentum-adjusted EMA that adapts to recent price behavior. It accelerates during strong trends and smooths out during consolidation to prevent counter-trend signals.
• Velocity Confirmation: Measures the rate of change (ROC) against its average to ensure there is sufficient momentum behind a detected pattern.
• Classification System: Signals are tiered into "Strong" (passes basic filters), "Ultra" (includes gaps and high velocity), and "Watch" (pattern detected but filters not fully met).

Settings

Scanner Core Settings

• Scan Sensitivity: A multiplier used to adjust the overall detection sensitivity.
• Pattern Strength Filter: The minimum strength score required for a pattern to be classified as a "Strong" signal.
• Trend Period: The lookback period for the EMA used to determine trend alignment.
• Show All Patterns: When enabled, displays every detected candlestick pattern regardless of filter status.
• Advanced Patterns: Toggles the detection of complex patterns like Three White Soldiers, Three Black Crows, and Tweezers.
• Gap Analysis: Enables the detection and visual highlighting of price gaps.
• Velocity Confirmation: Requires price momentum to exceed a specific threshold for a signal to be validated.
• Neural Bias Filter: Enables the adaptive momentum-adjusted trend filter.
• Neural Period / Learning Rate: Controls the lookback and adaptation speed of the neural filter.

FAQ

How do I access Photon Price Action Scanner?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Which timeframes are best for this tool?

While it works on all timeframes, the 1H-4H charts typically offer the best balance between signal frequency and reliability.

What do the "Ultra" signals mean?

"Ultra" signals occur when a strong pattern is detected alongside a price gap in the same direction and confirmed by high price velocity.