The Sideways Price Action Forex Detector indicator for Metatrader 4 identifies and paints interesting areas of sideways price action on the trading chart.
The indicator draws a blue rectangle around the sideways price action area.
These range-bound areas can be used to trade powerful breakouts in both directions.
Buy & Sell Trade Example
- Open a buy trade when the price closes above the blue rectangle and the underlying trend is up.
- Open a sell trade when the price closes below the blue rectangle and the underlying trend is down.
The indicator works for any Metatrader 4 instrument.
The Sideways PA indicator is very reliable, lightweight, and will not slow down your trading platform.
Free Download
Download the “SidewaysDetector.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The picture below shows the Sideways Price Action Forex Detector mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit strategy when trading with the Sideways Price Action Forex Detector indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Price action
Does the indicator repaint? No.
Sideways Price Action Detector + Forex Trend Scanner Scalping Strategy for MT4
This scalping strategy combines the Sideways Price Action Forex Detector MT4 with the Forex Trend Scanner MT4 to capture short, precise trades in fast-moving markets.
The Sideways Price Action Detector identifies consolidation zones with blue rectangles, helping traders spot breakout points.
The Forex Trend Scanner confirms trend direction using color-coded candlesticks: green for bullish and red for bearish trends.
This setup is ideal for scalpers who trade lower time frames like M1, M5, and M15.
It works best during volatile sessions when breakouts are likely, such as the London or New York sessions.
The strategy allows traders to quickly capture small price movements while aligning with the prevailing market trend.
Buy Entry Rules
- Wait for the underlying trend to be bullish, indicated by green candlesticks on the Forex Trend Scanner.
- Enter a buy trade when the price closes above the top of the blue rectangle on the Sideways Price Action Detector.
- Set a stop loss just below the bottom of the blue rectangle or recent swing low.
- Take profit after 15–25 pips or trail the stop as the trend continues upward.
Sell Entry Rules
- Wait for the underlying trend to be bearish, indicated by red candlesticks on the Forex Trend Scanner.
- Enter a sell trade when the price closes below the bottom of the blue rectangle on the Sideways Price Action Detector.
- Set a stop loss just above the top of the blue rectangle or recent swing high.
- Take profit after 15–25 pips or trail the stop as the trend continues downward.
Advantages
- Combines breakout detection with trend confirmation for higher probability trades.
- Clear visual signals make it easy to identify entry points quickly.
- Works well on multiple pairs, especially EURUSD, GBPUSD, and USDJPY.
- Helps traders capture fast intraday moves while staying aligned with the trend.
- Minimal chart clutter; signals are easy to interpret for quick decision-making.
Drawbacks
- Can give false signals during low volatility periods when price moves sideways without momentum.
- Breakouts can fail, leading to stop loss hits if the market reverses quickly.
- Requires constant monitoring because trades can develop and close quickly on lower time frames.
Case Study 1: EURUSD M5 – London Session
During the London open, EURUSD formed a consolidation rectangle between 1.0805 and 1.0815.
The Forex Trend Scanner indicated a bullish trend with green candlesticks.
Price closed above the rectangle at 1.0816, triggering a buy trade with a stop loss at 1.0804.
Within 25 minutes, price reached 1.0835, yielding a 19-pip profit.
This trade demonstrated how combining trend confirmation with breakout detection can provide fast and reliable scalp entries.
Case Study 2: GBPUSD M1 – New York Session
GBPUSD was consolidating between 1.2780 and 1.2790 with red candlesticks on the Forex Trend Scanner, indicating a bearish trend.
Price closed below the rectangle at 1.2778, triggering a sell trade with a stop loss at 1.2792.
Within 15 minutes, the pair fell to 1.2760, yielding an 18-pip profit.
The combination of breakout detection and trend alignment allowed for an effective short scalp in a volatile session.
Strategy Tips
- Focus on major trading sessions to increase the likelihood of strong breakouts.
- Avoid trading during low-volume periods when rectangles may produce false breakouts.
When applied consistently, the Sideways Price Action Detector and Forex Trend Scanner MT4 strategy offers a structured approach to scalping.
By waiting for both trend alignment and breakout confirmation, traders can capture rapid intraday movements while managing risk effectively.
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Download the “SidewaysDetector.mq4” indicator for Metatrader 4
