A trader creates a free, price-action based indicator that looks for a specific pattern in the market, the ABC pattern. The indicator is compatible with stocks, Forex, or crypto and is available for download from the trader’s website. The trader also recommends using the low-fee Forex broker, Hanger Trade. The trader demonstrates how to use the indicator for long and short trades and recommends combining it with the RSI indicator for better results.

The Amazing Free Price Action Indicator: A Santa’s Gift to Traders

Introduction

Christmas is just around the corner, and while everyone is excited to receive gifts, Forex trader and YouTuber, Trade with Trend, decided to be the Santa we all need in the trading world. In this article, we will take a closer look at Trade with Trend’s free indicator that uses price action and can be used for any market.

The ABC Pattern Formation

Using his extensive experience and analysis, Trade with Trend identified a specific pattern formation he calls the ABC Pattern. This formation has been successful in predicting market moves, and he guarantees that almost every great market move has started with this exact formation.

Live Trades and the RSI Indicator

To guide traders in using this pattern, Trade with Trend created a free indicator that automatically draws all the lines and points for traders. It even labels if it’s a long or short setup.

To enter a long trade, for example, traders must look for a downtrend that ends at point A, followed by an uptrend that starts moving upwards (point B) and a pullback that creates the final point (point C). Once point B breaks, traders can enter a long trade. Stop loss is set below point C, while take profit is set at a one to two risk to reward ratio.

To filter the good formations from the bad ones, Trade with Trend suggests adding the RSI indicator. The RSI indicator’s level line should be marked at 50. Only formations that occur above or below the 50 level should be considered good formations for entry.

Conclusion

Trade with Trend’s free price action indicator is a gift that keeps on giving. With the ability to predict market moves based on the ABC pattern formation, it is definitely worth trying out for traders who want to improve their trading strategies. Plus, with the added bonus of using the RSI indicator to filter good formations, traders can minimize bad trades and increase their chances of success. Santa might not be real, but Trade with Trend’s free indicator definitely is.