Point and Figure Trading | Forex indicator download- MT4/MT5 resources

I first became interested in point trading twenty years ago when I was trading stocks. Before the advent of personal computers, P&F charts had to be created and maintained manually using graph paper, but this work required very little time per day. I've had a lot of success and am happy with this method.

If you are not familiar with P&F theory, search it on the Internet. Investopedia has a good basic article on this topic. Several books on P&F can also be found at your local library. It's probably not a good idea to discuss this topic further without a basic understanding of P&F basics, so don't neglect to do this research.

I have been trading the spot FX market for two years and have often thought that there might be a way to implement this excellent filtering method for the FX market (this is the basic principle of P&F charts) using MT4. I did some research and tried a few very interesting indicators, but finally decided to write my own. I abandoned the concept of actually creating X's and O's on the chart (although this is possible in MQL4) in favor of an approach that is more suitable for MT4 functionality.

Let me briefly introduce my background. I'm a retired computer programmer with over forty years of experience. I have forgotten more programming languages ​​than most people know, but have relatively little experience with MQL4, so if you are an expert in the language, please correct any errors in the coding of the indicators posted here and send me an explanation of what you did and why - I love learning new things.

Below you will find an MT4 indicator and an MT4 expert advisor. They are:

P&F.mq4 - P&F levels will be plotted on the chart. Entry points are indicated by up or down arrows.

P&F_Expert.mq4 - I almost didn't publish this EA because there are many misunderstandings about the expected results of the EA. I do not recommend trading this EA with real money. I wrote it with the aim of optimizing the parameters used in the P&F.mq4 indicator. I have some experience with trading bots and can only say that when you start using a trading bot, at least more problems will arise than you think. My ultimate plan is to get this expert working well enough so that I can have it trade while I sleep (I live in the Chicago area and miss a lot of the great trades that start during the Europe/London conferences), but the EA posted here is not ready for that. Again, if you are an MQL4 expert and want to improve my code, please share your expertise.

How to use this indicator:

When MT4 is not running, copy P&F.mq4 to the Metatrader \Experts\Indicators folder. This indicator will be available to add to your charts when MT4 is launched. I didn't include a template because everyone likes their own color scheme.

The blue lines on the chart are equivalent to the top/bottom columns of X's and O's shown on a traditional P&F chart. The black dashed line shows the point at which the trend will reverse and a new X or O column will begin. Green/red arrows indicate bars crossed by reverse lines.

Some notes...

I'm definitely not antisocial - just very busy, so please don't ask me "how to put indicators on a chart" type questions. Answers to such questions can be found in the MT4 Help or the Beginners Q&A Forum. Also, try not to message me privately - if you have a really good question, ask it in the forum. Others may have better answers than me.

I have no intention of modifying the P&F.mq4 indicator to provide any kind of alerts. They don't work for me and I'd rather spend my time implementing ideas that might make this approach more profitable.

If you decide to use this method for scalping, please note that I have not found any combination of parameters that brings profit on a time frame smaller than M15. This doesn’t mean that scalpers with the right market savvy can’t earn ideas. Use your own judgment.

I have tested this method very thoroughly on EURUSD on the M15 and H1 timeframes. There are signs that it works on other currency pairs as well. If you find something that works well, please share it with all of us. You need to experiment with stops, box sizes, and reversal lines to find what works. This can be done using P&F_Trader, or using P&F_Expert and the MT4 Optimizer.

I haven't posted any charts yet. The reason is that I'd rather see if anyone is interested in this approach before I spend more time sharing it. Every other thread I've found (on this forum and others) disappears after a few posts. I don't know why - maybe it's not flashy enough or has too few indicators.