It is an mt4 indicator used to draw daily, weekly, monthly, and yearly price levels on the chart in Metatrader 4. Retail traders widely use it.
The daily, weekly, monthly, and yearly levels are under the attention of big traders, and these levels act as key levels in the forex market. A Trend reversal is always expected from these high probability key levels.
Working of high low indicator in mt4
It isn’t easy to check the higher timeframe critical levels on all the timeframes and each currency pair. So this high low indicator helps us draw a simple line with a small text written below the line.
It will draw six types of levels on the chart
- Previous Day high (PDH)
- Previous Day low (PDL)
- Previous Week high (PWH)
- Previous Week low (PWL)
- Previous month high (PMH)
- Previous month low (PML)
- Previous year high (PYH)
- Previous year low (PYL)
These key levels are significant in intraday trading because the price trend reverses from these levels.
Usually, the high will act as a resistance, and the low will act as a support level.
When price reaches the high of daily, weekly, monthly, or yearly level, then wait for the formation of a bearish reversal candlestick pattern at that level. If a bearish candlestick pattern like a pin bar or bearish engulfing forms at any key level, place a sell order with stop loss above the candlestick pattern.
When price reaches any lower key level, wait for a bullish reversal candlestick pattern. If a bullish candlestick pattern like a pin bar or bullish engulfing pattern forms at any key level, place a buy order with stop loss below the candlestick.
The multi-timeframe is the best feature you can use in trading to increase the probability of winning. Because the key levels that form on higher timeframes become more valid on lower timeframes, so it is easy to use higher timeframe key levels in intraday trading using this high low indicator.