The Pain MT5 custom trading tool is short for price action indicator,and is an amazing technical study that shows the OHL#C candlestick price ratio over a define time period.
The Pain Metatrader 5 indicator has two input parameters in use:
Period – defines the period deployed in the calculation;
Method – defines the method used for the calculation.
The formula that defines the Price Action Indicator is quite simple:
Pain = (3*MA(Close) – MA(Open) – MA(High) – MA(Low)) / 2
MA – moving average with the Period time period and the Method calculation method.
The Pain Metatrader 5 indicator has a light sea green line that oscillates around the zero center line.
This gauge allows trader determine bullish (when the light sea green line is above the zero mark) and bearish (when the light sea green line dips below the zero level) market sentiment.
It is also possible to trade divergences when using the Pain MT5 indicator, all that’s needed to wait for price to make higher highs while indicator develops a corresponding lower lows (for bearish divergence).
If price makes lower highs while the light sea green line of the indicator triggers a corresponding higher highs (for bullish divergence).
The Pain MT5 indicator is not a standalone type, hence a fine blend with other technical tools is needed to bring out the best.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Period, Method) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the Pain.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)