Forex-High-Low-Indicator
Watch the testing video here:
Forex-High-Low-Indicator
Forex High Low Indicator for MT4 shows the high and low of the price of the security during the specific time period. When it comes to Forex, there are countless tools and measures available, however, some of them are very complex and difficult to use, especially for beginners. The High Low indicator can be very helpful here in the sense that it is a very simple measurement and easy to utilize in the currency analysis.
On the charts, this indicator is represented with two horizontal lines. For example, the hourly chart below shows EUR/USD exchange rates during the previous week and two black flat lines denote weekly high and low during the same period:
Using the MT4 high low indicator might be helpful in several ways.
Traders using a scalping or day trading style can use this information during their decision making. One strategy to do this is to buy near weekly lows for example and sell when the price is approaching the weekly high.
The second method would be to utilize a high low indicator for breakout strategy. For example, if the pair breaches the previous weeks high and overcomes the resistance in the process, then it might be a sign for a breakout and the trader might consider opening a long position. The opposite is also true if the pair breaks down below previous lows, then it might be interpreted as a good selling opportunity.
Finally, comparing the recent highs and lows to the previous periods can be helpful for trend analysis. For example, if the weekly or daily highs are constantly getting lower, then this might be a sign of the formation of the downward channel and potentially downtrend as well.
