MW Tetris

M&W Patterns Free Indicator MT4

I would like to talk about M&W Patterns (old fashionned Patterns) that are constantly drawn on Forex market. It happens on regular basis on low time frame like (M30 & H1). Patterns on higher TF are more reliable but it doesn’t happen that much (H4 & D1).

MW Tetris
MW Tetris

M&W Patterns are repetitive structure price left on the cycle move. A “M” Pattern is the way the market is producing a double bottom (creating a support zone) that could be interesting to look at. A Long opportunity can be detected there. On the opposite side, when market (chart) draws a “W” Pattern, it creates a resistance level which could be interesting to look for short opportunities. In the video, I show the W that happened. I entered short on the top of the W.

Since I got interested on these patterns, I have notice a particular point where market could also react. It’s in fact the Kel level to watch for further direction or time to reverse the initial position. I called it “CP” Center Point. It’s the middle price level of the structure of the pattern. In the video I placed Takeprofit on that “CP” level. Another great thing of this strategy is the Risk/Reward. SL is always tight as we are supposed to enter on support or resistance… if market goes into the opposite of the trade and so breaking out M base or W roof… it is pointless to keep alive the position.

I have created the M&W Pattern Indicator for MT4, so it draws the patterns on your chart and you get real time signals. The indicator can be downloaded for free until end of December 2016 on http://www.forexfactory.com/showthread.php?t=541364.

Download the last version on Post 1. On August the last free version will be released.

It is also include CSA (Currency Strenght Analyser): A powerful tool that indicates in realtime the strongest currency vs the weakest currency. The total points is great to get an idea on how global market is volatile.

  • Minimum 60 to 80: Market is really quiet
  • 80 to 120: Could be not o quiet for some pairs
  • 120 to 170: Market is volatile (High news impacts market
  • over 170 to around 200 (Maximum seen so far): Global market is impacted and some pairs are really extended… huge spikes. Don’t go against the massive trend.

There are a lot of examples are presented into the thread, also on the blog (refer post 1)

Only set CSA = true for 1 chart only while using the Indicator.

I hope this indicator will help you to filter trades while using your own trading style.

Enjoy.

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