What is price action?
Reads the structure of highs, lows and closed candles to spot a confirmed swing break.
What is Price Action?
Reads the structure of highs, lows and closed candles to spot a confirmed swing break.
Illustrative signals of the rule on simulated data — not a trading recommendation.
Rule: Break of a confirmed swing high/low (2 candles on each side): buy/sell. Entry = close of the signal candle; SL = entry ∓ 1.5 × ATR(14); TP1/TP2/TP3 = 1R/2R/3R.
How to read Price Action signals
How Price Action produces its number, and what each shape on the chart means.
Formula and how it works
A swing high or low is confirmed when it is higher or lower than two candles on each side. A close beyond the latest swing is a structure-break signal; the rule only uses closed candles.
State which swing is used, the timeframe and the candle-close condition in the EA brief.
Recommended MT5 parameters for Price Action
Values used in the illustration; confirm them before deploying an EA.
| Parameter | Description |
|---|---|
| Swing | Two candles on the left and two on the right to confirm a high/low. |
Frequently asked questions about Price Action
Does Price Action on this page use real or simulated data?
The chart on this page uses a deterministic simulated candle series; it is not market prices or trading results.
Can Price Action be used in an EA?
You can describe the rule and parameters in a Custom EA brief. It needs independent testing with real data and server time.
How are the SL and TP levels on the Price Action chart calculated?
Entry is the close of the signal candle. SL is 1.5 times ATR(14) away from entry; TP1, TP2 and TP3 are 1R, 2R and 3R away from entry.
Using Price Action in an EA, and further reading
State the candle-close condition, parameters and server time clearly when you put the rule into an EA. See the EAs available on the marketplace to compare options, or read how to read MT5 backtest results before judging any EA.
Other price action indicators
Indicators in the same price action group, often used instead of or alongside Price Action.
An indicator draws signals, but when to enter, where to stop out and how much to risk are still your set of rules. Send those rules and DinexSpace builds them into an EA.