Price Magnet: Advanced Price Density & Institutional Levels
Price Magnet is a professional-grade analytical tool for cTrader designed to reveal where "Smart Money" accumulates positions. Unlike standard oscillators or trend indicators, Price Magnet uses a mathematical approach to identify zones of maximum market interest by calculating Price Density.
How It Works
The market often returns to levels where it has spent the most time. These are the "Magnets". This indicator scans a specific historical depth, clusters price action into frequency groups, and highlights the strongest levels that are likely to act as future magnets for the price.
Detailed Parameter Guide
To get the most out of Price Magnet, it is essential to understand its configuration:
- Analysis Depth (Bars): Determines how many historical candles the indicator analyzes.
- Short-term (50-100): Best for scalping and day trading.
- Long-term (300-500): Best for identifying major institutional "S&R" zones.
- Back Shift: Allows you to shift the analysis window back into the past. Useful for backtesting how historical density zones influenced subsequent price movements.
- Grouping Step (Price): The most critical setting. It defines the "sensitivity" of the magnet.
- Price Source: Choose which part of the candle to analyze.
- Close: Standard analysis.
- Median / Typical: Often more accurate as it accounts for the entire range of the candle.
- Levels To Display: Defines how many magnetic levels to draw (from 1 to 10). The most frequent level is always drawn with a thicker line.
- Visual Settings (Show Density Zone/Lines): Toggle the background rectangle (Zone) and horizontal lines. The Zone represents the total boundaries of the analyzed price action, providing a clear visual of the current trading range.
Trading Strategy Tips
- Mean Reversion: When the price deviates significantly from the "Main Magnet Line," look for exhaustion signals to trade a return to the magnet.
- Breakout Confirmation: If the price breaks through a strong Magnet Level and retests it, that level often flips from resistance to support.
- Take Profit Targets: Use secondary magnetic levels as objective targets for your trades.
Price Magnet simplifies complex market profile data into actionable visual levels, giving you a professional edge in any market condition.
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