Price Action

The Price Action indicator identifies key candlestick patterns like Pin Bars and Shaved Bars to provide a non-intrusive visual analysis of market sentiment and potential reversals.

Usage

The script can be used to identify specific price action setups that often precede trend reversals or continuations. Unlike traditional indicators that change candle colors, this tool uses shapes to maintain chart clarity.

• Pin Bars: Represented by triangles, these indicate price rejection. A bullish Pin Bar (triangle below the bar) suggests a rejection of lower prices at a local low, while a bearish Pin Bar (triangle above the bar) suggests a rejection of higher prices at a local high.
• Shaved Bars: Represented by squares, these indicate strong momentum. A bullish shaved bar (square above) shows the close is very near the high, suggesting strong buying pressure. A bearish shaved bar (square below) shows the close is near the low, suggesting strong selling pressure.

Details

This script is a refactored version of the Price Action concept by ChrisMoody, optimized for modern visual standards and performance. It focuses on two primary patterns:

1. Pin Bars: Filtered by a historical trend period to ensure the pattern is occurring at a relative high or low, increasing its reliability as a reversal signal.
2. Shaved Bars: Calculated based on a percentage tolerance of the total candle range, identifying candles where one side has little to no "wick," signaling dominant market control.

Settings

• Pin Bar Tolerance (%): Sets the threshold for how small the candle body must be relative to the range to qualify as a Pin Bar.
• Pin Bar Historical Trend Periods: The lookback period used to determine if a Pin Bar is occurring at a local high or low.
• Shaved Bar Tolerance (%): The maximum allowable wick size (as a percentage of the candle range) for a candle to be considered "shaved."
• Enable Pin Bars: Toggles the detection and display of Pin Bar patterns.
• Enable Shaved Bars: Toggles the detection and display of Shaved Bar patterns.

FAQ

How do I access Price Action?

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

What is the difference between a Pin Bar and a Shaved Bar?

A Pin Bar represents a sharp rejection and potential reversal, characterized by a long wick. A Shaved Bar represents strong, unidirectional momentum where the price closes very near the extreme of the candle.

Can I set alerts for these patterns?

Yes, the script includes built-in alert conditions for all four detected patterns (Bullish/Bearish Pin Bars and Bullish/Bearish Shaved Bars) which trigger upon bar close.