E.G. Price Action
$487 Lifetime Plan
The E.G. Price Action is an indicator implemented for the NinjaTrader 8 platform, useful for entry confirmations for traders using the E.G. Trigger Point. Price action is the study of a security’s historical price movement. Traders using price action strategies study historical prices to identify clues on where the market could move next.
The most commonly used price action indicator is price bars or candlesticks, which give details such as a market’s opening and closing prices and its high and low price levels during a specific period. Analyzing this information is the core of price action trading. Price action is the study of the actions of all the buyers and sellers actively involved in any given market. Therefore, analyzing what the rest of the market participants are doing can give traders a unique edge in their trading decisions.
Thus, the E.G. Price Action adds more confluence to your trading when considering the E.G. Trigger Point levels for position entries. The indicator identifies the market reaction (price action) when the market reaches the area around the Trigger Point levels; it analyzes the candlestick patterns and automatically generates signals (arrows and sounds) for you.
The E.G. Price Action is seamlessly integrated with the E.G. Trigger Point levels attached to your chart; it generates an alert (i.e., sound or an arrow sign appears on your chart) when one of the following types of candle patterns are observed once the market reaches the E.G. Trigger Point levels:
- Key Reversal Candlestick (Engulfing) – A reversal candle shows a clear sign of change in trend direction. For the bullish reversal setup, the price opens below the previous low and closes above the previous high. For a bearish reversal setup, the price opens above the previous high and closes below the previous low. According to the definition, the key reversal candle must have a gap-up opening.
The first candle represents the mass participation of the buyer and seller in a particular direction, as shown in our example the first candle was a big bearish candle which shows the seller’s participation. The second candle opens the gap down, indicating a powerful down thrust. As in the second candle, such a gap-down move is rejected and the price did close above the previous high. Essentially a key reversal candle hints a change of market direction. - Three/Two Candle Pattern – three/two consecutive candles with identical colors.
- Pin Candle – It has a long tail, it represents a rejection of price which is an indication of a possible reversal in the direction of a trend. For the bullish pin candle, the lower tail takes up most of the candle. For the bearish pin candle, it is the upper tail that dominates. It has a long tail which graphically represents a sharp rejection of price. With a long-tail pin, a candle breaks a support level, and resistance tricks the trader into entering in the wrong direction.
Trading platforms: NinjaTrader 8.
Instruments: All the instruments that the E.G. Trigger Point supports.
The video below demonstrates how the E.G. Price Action signals are presented on your chart; Long signals (green arrows) and Short signals (red arrows).
To demonstrate the potential return of trading using the E.G. Price Action, we developed an automatic strategy designed to take the divergence signals off of the trigger points.
The video below explains more about the E.G. Automatic Strategies:
