The 3 Days High Low Indicator For MT4
The 3 Days High Low Indicator For MT4 is a very simple but useful indicator that can provide you with some additional intel on where the market might be heading next. It also shows you some strong support and resistance levels that you might forget about if you weren’t using this indicator. The indicator shows you as the name suggests the lows and highs of the previous three days. Those are often strong support and resistance level.
In addition to these lows and highs of the previous days the indicator also shows you the range of the current day. This can help you to determine how much more the market might move this current day. Such things are especially useful for a daytrader or a scalper.
In this text you will learn a few different ways to use the 3 Days High Low Indicator For MT4 in your trading. At the end there will also be some trade examples with this indicator.
Usage of the 3 Days High Low Indicator For MT4
There are a few different ways to use the 3 Days High Low Indicator For MT4. The first and most general way is to just use the indicator as a support tool for your technical analysis. This indicator makes it really easy to spot some of the strongest support and resistance areas of the last three days. So the indicator can help you to spot those very fast and thus can save you some time as well.
The second way to use the 3 Days High Low Indicator For MT4 is to use it for breakout- or range-trading. The strong level that the indicator shows you are often very well respected by the price movement, which can be exploited by you. You could use the price action once the market reaches one of these strong areas to determine if the area will get broken or if price will bounce off of it to then place a range or breakout trade.
Trade examples using the 3 Days High Low Indicator For MT4
In the above picture you can see a possible trade entry that is based on the 3 Days High Low Indicator For MT4. This entry makes use of the very popular BPC or Break Pullback Continuation pattern. With this pattern you are first looking for a strong break of a support or resistance zone. Afterwards you are waiting for price to come back to this exact zone and watch the price action closely. If you don’t see any strong signs for a break of the zone to the other side, then you enter into the trend continuation.
This next screenshot even shows a bunch of different trade opportunities. The first two entries are typical range trades. You would observe the price action at the previous lows and highs very closely and then determine based on the price action, that the range will probably hold and you can trade it. The next entries in this picture are, like in the first one, based on the widely used Break Pullback Continuation pattern and again lead to very fast profits.
So summarized the 3 Days High Low Indicator For MT4 can be very useful if you know how to use it. I also don’t really see a downside to this indicator, since it doesn’t draw too many lines or other stuff that could disturb you while trading on your chart.