Introduction To dayHL_Average Indicator For MT4
Table Of Contents:
- Introduction To dayHL_Average Indicator For MT4
- Trading Strategies Using DayHL_Average Indicator For MT4
- Bottom Line
dayHL_Average Indicator For MT4 plots, the intraday levels on the charts based on the High, low, and close of the previous day. These intraday levels help the traders to see the potential high, low, and close for the day ahead. By using this information, it is easier for the traders to make accurate trading decisions. Keep in mind that this indicator does not generate any trading signals, nor it follows the trend.
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Alerts In Real-Time When Divergences Occur
dayHL_Average Indicator For MT4 is not a leading or lagging indicator. It only plots the potential highs and lows for the intraday. This indicator prints the line above and below the price action, which indicates the high and low for the day. Also, this line acts as dynamic support and resistance. Hence it is essential to always pair this indicator with another indicator to generate accurate trading signals.
Trading Strategies Using DayHL_Average Indicator For MT4
As you know, the dayHL_Average Indicator For MT4 only plots the potential high and low for the day ahead. By pairing it with the famous RSI indicator, we are essentially combining its overbought and oversold areas of RSI with highs and lows of the DayHL_Average indicator to generate accurate trading signals.
RSI indicator stands for the Relative Strength Index. It is a leading indicator and one of the most popular ones in the forex industry. To find the overbought and oversold areas, the RSI indicator measures the magnitude of the price change. This indicator oscillates between the 0 and 100 levels; when it reaches a level 30, it indicates the oversold market, and when it reaches at 70 level it indicates the overbought market conditions.
FOR BUY
In an uptrend, first of all, look for the pullback where the indicator projected the low for the day. Secondly, when the RSI indicator reverses at the oversold area, it is an indication for us to go long.
The below CAD/JPY chart, the market was in an uptrend. On the 14th of October, it started to give the pullback. The very next day, dayHL_Average Indicator For MT4 projected the potential low at 81.81. You can see that the price action respects the 81.81 level and holds there for a couple of candles. Soon after the RSI indicator almost approached the oversold area, it gave us a sharp reversal, which is the sign of the continuation of a buy trend.
dayHL_Average Indicator For MT4 projected the 82.48 level as the high for the day. You can use that level to exit your whole position. If you are a position trader, wait for the next DayHL levels to load more positions in the trending market.
FOR SELL
When the market is in a downtrend, look for the pullback to the level where the dayHL_Average Indicator For MT4 indicator projected the high for the day. You can then go short when the RSI indicator reverses at the overbought area.
In the below EUR/GBP chart, the price pulled back for four consecutive days. On the 10th of October, when price action failed to go above the high of the day, we can see the sharp reversal of RSI at the overbought area. This indicates the potential selling opportunity.
For exiting your positions, always looks at the momentum of the price action, if the price action is strong enough, hold your positions for the deeper targets. If the original trend has a hard time to move, then use the most recent support/resistance or the oversold area of the RSI indicator. It's a good idea to put the stop loss just above the high of the recent candle. With enough experience, by using this strategy, you can easily make the 3 to 4R per trade.
Bottom Line
dayHL_Average Indicator For MT4 is a wonderful indicator to find out the intraday's potential high and low. From my own experience with this indicator, the success rate of this indicator is 70%. That is, seven out of ten trading signals were genuine. This indicator gives you particular areas for intraday trading, where you can plan your entry and exits. Since you can't use this indicator stand-alone, it is recommended to pair it with other credible indicators to identify accurate trading signals. Also, by using it in trending market conditions, you can easily filter the fake signals. We hope you liked this article. Happy Trading!
