How the daily H-L indicator MT4 works?
The Daily H-L for MT4 analyzes both the HIGH and the LOW values for any timeframe and then displays them on the present chart. Forex traders who employ strategies for trading that utilize HIGH and LOW to determine the entry and exit points will benefit from this indicator. In addition, it can serve in the role of a trend gauge since forex traders can discern BULLISH or BEARISH market conditions as it plots the highs and lows in one continuous line.
The indicator is a great tool to use by both experienced and new forex traders. It is effective across all intraday time frames and in weekly, daily, or monthly charts. For the best performance, the indicator needs to be used in conjunction with other price indicators to confirm reversals necessary for entry signals.
Trading with Daily H-L
The above EURUSD H1 chart displays an indicator for the daily H-L of the MT4 hand in action. The arrow shows its highs of the day in LIME while the lower in RED is an uninterrupted line. Additionally, the indicator can determine the low and high of any time frame and plot them on the present chart.
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Forex traders who have a trading strategy based on the daily high lows can buy when the price is at the everyday low. In this case, the daily Low serves as a support and serves as the opportunity for traders to make a Buy trade.
The ideal stop loss to place in this trade is lower than the previous low of the swing. This strategy gives the market the needed gap for fluctuation while offering the most effective stop loss to prevent whipsaws. However, the most profitable take-profit options for this type of trade will be the daily high.
The price fluctuates from the daily HIGH, forex traders can take a SELL, and the high serve as resistance. The position can hold until it hits the daily LOW, which is the ideal way to profit. The best stopping point for such types of positions may be the previous high of the swing.
Trends by H-L indicator
Additionally, forex traders can use both the high and low indicators to determine the direction of the trend. For instance, if a price keeps breaking the lows, it indicates a highly BEARISH trend. However, If the market consistently exceeds the high, it is a sign that the current BULLISH trend is strong.
The indicator Daily H-L for MT4 can be utilized to trade a multi-timeframe (MTF) chart. Trends that are higher in the time frame are more likely to last longer. Forex traders can recognize trends in the upper timeframe and then enter the market on the lower timeframe.
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Inputs of Daily H-L indicator
The following table shows the input parameters of daily H-L. Feel accessible to experiments with these parameters for perfect results.
The Daily H-L indicator is ideal for forex traders who BUY at Lows and SELL at high levels. Since the indicator plots value continuously, the output can be used in automated trading systems. In addition, forex traders can download the indicator for free and install it without difficulty.
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