Price Action Awesome Indicator

The Price Action Awesome Indicator tool provides automated detection of key price action candlestick formations, including Inside Bars, Pin Bars, and Fakey patterns, to help traders identify potential reversals and continuations.

Usage

The indicator can be used to identify specific market structures that often precede price movements. Traders can look for the following signals:

• Inside Bars: Marked with "INSIDE" text and triangles. A green triangle below the bar indicates a bullish inside bar, while a red triangle above indicates a bearish inside bar. These represent periods of consolidation.
• Pin Bars: Marked with "PINBAR" text and triangles. These suggest price rejection at specific levels. Green triangles indicate bullish rejection, and red triangles indicate bearish rejection.
• Fakey Patterns: Highlighted with a background color (Green for bullish, Red for bearish). A Fakey occurs when a Pin Bar follows an Inside Bar, suggesting a false breakout and a potential move in the opposite direction.

Details

The script uses specific mathematical conditions to define each pattern:

• Inside Bars: Identified when the current candle's range is contained within the previous candle's range, with a smaller body size than the preceding bar.
• Pin Bars: Calculated by comparing the size of the wicks (shadows) to the body and the previous candle's range. A bullish Pin Bar requires a significant lower shadow and a lower low than the previous bar.
• Fakey: This is a multi-bar pattern where the previous bar was an Inside Bar, and the current bar is a Pin Bar, indicating a failed breakout of the Inside Bar's range.

Settings

As this script is a pure logic-based pattern detector based on fixed price action rules, there are no user-input parameters. The script automatically calculates:

• Inside Bar Logic: Based on price range containment.
• Pin Bar Logic: Based on wick-to-body ratios and relative highs/lows.
• Fakey Logic: Based on the sequence of an Inside Bar followed by a Pin Bar.

FAQ

How do I interpret the background colors?

The background colors indicate "Fakey" patterns. A green background suggests a bullish Fakey (false breakdown), while a red background suggests a bearish Fakey (false breakout).

Can I set alerts for these patterns?

Yes, the indicator includes alert conditions for all six signal types: Inside Bar Long/Short, Pin Bar Bullish/Bearish, and Fakey Bullish/Bearish.

How can I access the Price Action Awesome Indicator?

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