The Forex Master Pattern is an alternative form of technical analysis that provides a framework which will help you to find and follow the hidden price pattern that reveals the true intentions of financial markets. This algorithm here does a good job detecting the Phase 1 of the Forex Master Pattern cycle, which is the contraction point (or Value).
On Phase 2 we get higher timeframe activation (also called Expansion), which is where price oscillates above and below the average price defined on Phase 1.
On Phase 3 is where we get a sustained deviation from value (the Trend).
In a very short time you will start noticing this pattern, even on naked charts. It is all a matter of training your eyes - the more time you invest studying the charts with this indicator (both historically and replaying the market on strategy tester), the faster you will become familiar with this method.
This indicator DOES NOT REPAINT. You can safely study the chart historically because what is printed historically is what prints real time.
Why do traditional based indicator systems fail over time? Because the markets move in cycles that constantly change structure. Those traditional indicator systems must be constantly optimized and settings tinkered with because of the changing market environment. There are an infinite number of variables that affect price so no exact technical system can work the same forever, which is also the reason why most bots/EA fail.
If you learn to spot the Forex Master Pattern and understand the sequence of the real cycles that drive the markets, you can more accurately forecast market behavior. By using traditional indicators you end up masking this pattern.
Use the insights provided by the Forex Master Pattern indicator to elevate your trading to the next level.
This method of analysis works in any liquid market and timeframe.
HOW DOES THIS INDICATOR WORKS?
After detecting a contraction point, a minor box and expansion line start printing on the chart. It is your 1st heads up for a potential new master pattern origin point. By default, the minor box is invisible and the minor expansion line is a dotted white line. If the minor box is confirmed as a major box, a blue box will appear on the chart with a thicker solid white line projecting from it, and also a buy or sell liquidity line (it depends of which side confirmed the box as major) from the lowest or highest price after the major box. You will understand it better when you replay it on the strategy tester.
The major and minor expansion lines will print until the next major box is confirmed. The liquidity lines will print until price hits them.
Just because an expansion line stays as minor does not mean you ignore it or itīs less important. It is just that the algorithm was coded in a way to highlight more important points (the ones that get price expansion above and below the contraction point). It was done like this to avoid too many major boxes/lines on the chart, which would only lead to confusion. But you have to learn to spot when a minor expansion line is in fact a good origin point.
VERY IMPORTANT:
The default setting of historical bars is set to 500. This is more than enough for day trading and ensures fast drawings loading time and stable performance. Bear in mind that, the more bars you choose to load historically, the longer it will take to draw everything. On my mid end computer it takes 1 minute to load 10K bars worth of boxes and lines on a 5min chart, for example. If you try to load too many bars historically in lots of different charts and on top of that other indicators, donīt come here and complain about performance issues (metatrader hanging, lagging, weird behaviors etc...)
I recommend that you use the strategy tester if you wanna analyze more than 10K bars historically. Instead of trying to load 20K, 30K bars for the algorithm to analyze and draw boxes, it is better if you configure the strategy tester to start where you want to perform your historical analysis, even better if you analyze in smaller segments of time adequate to the timeframe you wanna analyze. For example, if you wanna analyze the 1min timeframe, configure the strategy tester to run 1 month. If you wanna analyze the 5min timeframe, configure the strategy tester to run 3 months, etc... This is a better form of study as you can see the indicator working in real time.
I DONīT recommend that you save this indicator as part of a template. The reason being is that the template is gonna be saved with all the drawings made by the indicator, and when you load the template on another chart on another timeframe/symbol, it is gonna print all the boxes and lines saved as drawings from another symbol/timeframe. It is better if you just load the indicator freshly on that new chart. If you happen to change the timeframe after you loaded the indicator on a different timeframe, go to the indicator settings and change the number of max historical bars to be adequate to the new timeframe - this will also trigger the indicator to recalculate, cleaning up any drawings from the other timeframe.
Indicator Parameters:
They are all self-explanatory, except Type. You can choose between 1 and 2.
1 is better suited for LTF (M1 to M30)
2 is better suited for HTF (H1 and upwards)
However, this is my personal preference. You can of course experiment and choose what looks best for you.
You can get the indicator or try the demo here: https://www.mql5.com/en/market/product/80881?source=Unknown#description
If you wanna learn more about this tool and method, I recommend you to watch this video (and also all the other videos from the channel):
On Phase 2 we get higher timeframe activation (also called Expansion), which is where price oscillates above and below the average price defined on Phase 1.
On Phase 3 is where we get a sustained deviation from value (the Trend).
In a very short time you will start noticing this pattern, even on naked charts. It is all a matter of training your eyes - the more time you invest studying the charts with this indicator (both historically and replaying the market on strategy tester), the faster you will become familiar with this method.
This indicator DOES NOT REPAINT. You can safely study the chart historically because what is printed historically is what prints real time.
Why do traditional based indicator systems fail over time? Because the markets move in cycles that constantly change structure. Those traditional indicator systems must be constantly optimized and settings tinkered with because of the changing market environment. There are an infinite number of variables that affect price so no exact technical system can work the same forever, which is also the reason why most bots/EA fail.
If you learn to spot the Forex Master Pattern and understand the sequence of the real cycles that drive the markets, you can more accurately forecast market behavior. By using traditional indicators you end up masking this pattern.
Use the insights provided by the Forex Master Pattern indicator to elevate your trading to the next level.
This method of analysis works in any liquid market and timeframe.
HOW DOES THIS INDICATOR WORKS?
After detecting a contraction point, a minor box and expansion line start printing on the chart. It is your 1st heads up for a potential new master pattern origin point. By default, the minor box is invisible and the minor expansion line is a dotted white line. If the minor box is confirmed as a major box, a blue box will appear on the chart with a thicker solid white line projecting from it, and also a buy or sell liquidity line (it depends of which side confirmed the box as major) from the lowest or highest price after the major box. You will understand it better when you replay it on the strategy tester.
The major and minor expansion lines will print until the next major box is confirmed. The liquidity lines will print until price hits them.
Just because an expansion line stays as minor does not mean you ignore it or itīs less important. It is just that the algorithm was coded in a way to highlight more important points (the ones that get price expansion above and below the contraction point). It was done like this to avoid too many major boxes/lines on the chart, which would only lead to confusion. But you have to learn to spot when a minor expansion line is in fact a good origin point.
VERY IMPORTANT:
The default setting of historical bars is set to 500. This is more than enough for day trading and ensures fast drawings loading time and stable performance. Bear in mind that, the more bars you choose to load historically, the longer it will take to draw everything. On my mid end computer it takes 1 minute to load 10K bars worth of boxes and lines on a 5min chart, for example. If you try to load too many bars historically in lots of different charts and on top of that other indicators, donīt come here and complain about performance issues (metatrader hanging, lagging, weird behaviors etc...)
I recommend that you use the strategy tester if you wanna analyze more than 10K bars historically. Instead of trying to load 20K, 30K bars for the algorithm to analyze and draw boxes, it is better if you configure the strategy tester to start where you want to perform your historical analysis, even better if you analyze in smaller segments of time adequate to the timeframe you wanna analyze. For example, if you wanna analyze the 1min timeframe, configure the strategy tester to run 1 month. If you wanna analyze the 5min timeframe, configure the strategy tester to run 3 months, etc... This is a better form of study as you can see the indicator working in real time.
I DONīT recommend that you save this indicator as part of a template. The reason being is that the template is gonna be saved with all the drawings made by the indicator, and when you load the template on another chart on another timeframe/symbol, it is gonna print all the boxes and lines saved as drawings from another symbol/timeframe. It is better if you just load the indicator freshly on that new chart. If you happen to change the timeframe after you loaded the indicator on a different timeframe, go to the indicator settings and change the number of max historical bars to be adequate to the new timeframe - this will also trigger the indicator to recalculate, cleaning up any drawings from the other timeframe.
Indicator Parameters:
They are all self-explanatory, except Type. You can choose between 1 and 2.
1 is better suited for LTF (M1 to M30)
2 is better suited for HTF (H1 and upwards)
However, this is my personal preference. You can of course experiment and choose what looks best for you.
You can get the indicator or try the demo here: https://www.mql5.com/en/market/product/80881?source=Unknown#description
If you wanna learn more about this tool and method, I recommend you to watch this video (and also all the other videos from the channel):
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