Introduction to Barros swing indicator
Barros swing indicator is an mt4 technical indicator that identifies price swing points in form of an ABCD pattern.
This mt4 indicator is based on price action because it will identify the swing low or swing high of a price and will label that point.
How does Barros swing indicator work?
Price swing is a high or low point from where a trend reversal happens. It will identify those swing levels and will label them so a trader can pick exact reversal points on the chart.
Swing high is a point on the price chart that has two lower highs on the left and right sides.
Swing Low is a low point on the price chart that has two higher lows on the left and right sides.
When Barros indicator identifies swing point then it will label it “A”. After point A, the next swing will be labeled as “B”. Then point C and D.
It also draws a line from point to point to show the price pattern.
Buy / Sell signals
Barros indicator only plots the swing points and it will not generate buy or sell signals. It will also label the primary buy or sell level than a boundary and a maximum extension level.
There are a few conditions you need to follow to open a buy or sell order.
Place a buy order
Look for price action at the primary buy zone. It means a bullish candlestick pattern at the primary buy zone and boundary level. Stop-loss should be placed below the maximum extension level. Keep holding the trade until an opposite swing level forms.
Place a sell order
A bearish candlestick pattern at the primary sell zone or boundary level will generate a sell signal. Stop-loss should be placed above the maximum extension level. Keep holding the trade until an opposite swing level forms.
Conclusion
Barros swing indicator is not just an indicator but also a complete trading system. It is based on pure price action strategies that make it a more profitable indicator.
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