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Price Position Indicator Review – Detecting Market Direction with Precision

What Is the Price Position Indicator

The Price Position Indicator for MT4 is a custom trading tool designed to help traders quickly identify whether the market is favoring buying or selling opportunities. Instead of relying on complex analysis or multiple chart overlays, this indicator gives traders a simple yet powerful display showing whether the current price is trading above or below a key turning point.

In practical terms, the Price Position Indicator visually tells you the position of the price in relation to its average direction. When the indicator detects that price has crossed above a certain calculated level, it signals a potential BUY opportunity. Conversely, when the price drops below that level, it highlights a possible SELL condition.

This indicator is especially helpful for beginner and intermediate traders who want an easy-to-read system that simplifies their decision-making process. By combining moving averages and real-time price data, the Price Position Indicator shows the “angle” or turning point of the market—allowing traders to gauge whether momentum is shifting up or down.

If you are looking for an intuitive and visual indicator that doesn’t overload your chart, the Price Position Indicator is one of the best custom indicators for MT4 to start with.

See also: PSAR Oscillator MTF Heatmap

How It Works – Price Position Indicator

The Price Position Indicator calculates and displays where the current market price stands relative to its recent movement. It does this by combining two underlying moving averages—one slower and one faster—and finding the mid-point between them. This midpoint acts as a “signal line” that represents a short-term equilibrium between buyers and sellers.

Here’s how it functions step by step:

Calculation of Moving Averages
The indicator uses two moving averages (typically a 26-period and a 20-period) to smooth out price data. These averages help identify whether the current price is trending upward or downward.

Determining the Turning Point
By comparing the open and close prices with this midpoint, the indicator determines whether the price has turned up (crossing above the midpoint) or down (crossing below it). This turning point becomes the key reference level, visually displayed on the chart.

Visual Display
The Price Position Indicator prints a large, clear label on your chart that says BUY or SELL in color-coded text.

• BUY signal (Aqua) appears when the current price is above the turning point, indicating upward momentum.
• SELL signal (Orange Red) appears when the price is below the turning point, indicating downward movement.
• When there’s no clear direction, the label turns Yellow, meaning the market is in a neutral or waiting phase.

Real-Time Price Data
Alongside the direction label, the indicator displays real-time Open, High, Low, and Close (OHLC) prices. This lets traders quickly assess current market conditions without having to look elsewhere on the platform.

Built-in Alerts
The indicator can generate alerts whenever a new signal appears. You can enable or disable this feature in the settings. When enabled, it will alert you with a message such as:

• “BUY above [price level]”
• “SELL below [price level]”
  This helps traders stay aware of new market changes, even when they are analyzing multiple charts.

Simple Visualization for Decision-Making
Instead of showing lines, arrows, or histograms, the Price Position Indicator provides clean, minimal on-chart information. This makes it ideal for traders who prefer uncluttered visuals while still maintaining awareness of market direction.

By continuously tracking where price is relative to its equilibrium line, the Price Position Indicator helps traders stay on the right side of the trend and avoid emotional trading decisions.

Price Position Indicator Settings

One of the strengths of this indicator is its customizable settings, which let traders adjust visual preferences and alert options according to their trading style. Here are the main settings you can modify:

• Corner Position – Choose whether the indicator panel appears on the right-hand or left-hand side of your chart. This helps fit your preferred layout or existing setup.
• Turn On Alert (Yes/No) – Enable or disable alert notifications. Turning it on ensures you never miss a signal, while turning it off keeps your chart silent.
• Buy Color / Sell Color / No Trend Color – Customize the display colors for different market conditions. The default colors are Aqua (BUY), Orange Red (SELL), and Yellow (Neutral).
• Font and Size – The indicator uses clear, bold text for the BUY/SELL signals and smaller text for OHLC values. You can adjust these through the MT4 object properties if needed.

These settings make the Price Position Indicator flexible enough for any trading style—from short-term scalping to long-term swing trading.

Why Use the Price Position Indicator

The Price Position Indicator provides several key advantages that make it one of the free forex indicators for beginners worth trying:

• Instant Market Direction
  It gives a direct, visual cue whether the price action supports a buy or sell scenario. No guesswork—just clear direction.
• Combines Simplicity with Accuracy
  By blending moving averages into one dynamic signal level, it captures trend shifts early without overcomplicating the chart.
• Great for Learning Market Behavior
  For traders still learning how to use indicators in forex trading, this tool serves as an excellent educational companion. It demonstrates how prices behave around equilibrium zones.
• Enhances Trading Confidence
  Having a clear BUY or SELL label helps eliminate hesitation, making trade entries more consistent and disciplined.
• Supports Strategy Development
  You can use the Price Position Indicator as part of a broader trading strategy. For example, combine it with support and resistance levels, or use it alongside oscillators to confirm entries. This aligns perfectly with technical indicators for forex strategies and helps in improving forex trading results with indicators.

Trading Tips and Best Practices

While the Price Position Indicator simplifies direction analysis, it’s important to remember that no indicator should be used alone. For best results:

• Confirm signals with price action or another indicator (e.g., RSI, MACD, or trendlines).
• Avoid entering trades immediately at signal change—wait for a candle close for confirmation.
• Practice good risk management, such as using stop-loss orders and proper position sizing.
• Test the indicator on a demo account first to get familiar with its signals and behavior.

By integrating the Price Position Indicator into your daily trading routine, you can gradually develop a better sense of market rhythm and decision-making discipline.

How to Instal “Price Position” Indicator for Metatrader 4

1. Open your Metatrader 4 platform.
2. Download and save the “Price Position” indicator to your desktop or any other folder located on your local computer.
3. Choose “File” then “Open Data Folder” (Ctrl + Shift + D) on your Metatrader 4 platform.
4. Explore the following folder: MQL4 > Indicators.
5. Copy and paste the “Price Position” indicator into this folder.
6. Restart Metatrader 4.
7. “Price Position” indicators are stored by default in the custom indicator folder.
8. To access these indicators, go to Top Menu > Insert > Indicators > Custom.
9. In order to add a “Price Position” indicator to any of your Metatrader 4 charts, you will need to select a forex chart with one mouse click, then go to Top Menu > Insert > Indicators > Custom > click the “Price Position”.
10. Done!

See a complete guide How To Install Metatrader 4 Custom Indicators

Final Thoughts

The Price Position Indicator for MT4 is a simple yet effective tool for detecting directional changes and potential entry points in the forex market. It’s especially useful for traders who want to avoid complicated chart setups and instead focus on what matters most—clear, actionable market direction.

If you’re looking for a clean, visual way to enhance your trading performance and gain confidence in your decisions, this indicator is a great addition to your toolkit.

You can try this tool directly by downloading it below.

Free Download Price Position indicator for Metatrader 4