From the article you will learn:
My warm greetings to all visitors and readers of our site. Today we will talk about the High low signal indicator, let's say, for a certain number of candles. In a way, it is signaling. After all, we will use it, as, shall we say, mortarmen, having signaled, it will go off the schedule and will not be used for some time.
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It is not a secret for anyone that indicators have become faithful companions in the life of every trader. Some people see indicators as evil, while others make them the culprit of all ills. In fact, none of them are right. In fact, any indicator is only an assistant. He, let's say, from his point of view, points us to a change in price dynamics.
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There are also some tools that, at first glance, are quite simple and unremarkable, but at the same time, in skillful hands, they can become an effective weapon in the struggle for profit. This very instrument is the High low signal indicator for a certain number of candles. At first glance, this is a fairly simple tool, but at the same time, it can also become quite effective if you approach the process of using it wisely.
First of all, you shouldn't expect anything supernatural from him. Any tool works strictly within the framework of the algorithm embedded in it. And this algorithm, of course, cannot cover all the important nuances within the price movement. Generally, no one knows where the price will go. It is impossible to work in such a way that you have profitable trades. In any case, losses in trading, as in any business, do exist and must be accepted.
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The fact is that many novice traders try to literally overlap with instruments in an attempt to avoid losses. They install a bunch of indicators on the chart, but this only makes it worse. In principle, human logic is quite simple and straightforward. He believes that a large number of instruments will allow him to qualitatively filter the situation on the market, capturing the smallest price fluctuations.
But, in practice, everything happens differently, and it so happens that the instruments simply begin to contradict each other. Here it turns out, some in the forest, some for firewood. How, then, to proceed, you ask? In fact, it's very simple - you need to learn to accept losses. It is pointless to fight what you cannot avoid.
Watch a video review of this signal High low instrument
Indeed, no matter how hard you try to avoid losses, you will still receive them. The most important thing here is to focus on ensuring that the profit for each trade is significantly higher than the stop. For example, if you use the 1k4 ratio, then 30% of profitable trades will be enough for you to remain stable in profit. It's just that you psychologically need to educate yourself so that you do not violate your own trading system. Nothing should force you to break the rules of your system. Do not care, even though there will be a meteor shower on the street, you have your system and you must comply with it.
It's just that many traders knowingly violate the rules of the strategy, and then wonder why they have only losses.
Description of the High low indicator for N candles
In fact, the N candle High low indicator is extremely easy to use. As you might have guessed from the name, this tool shows us High and Low for a certain period of time.
In fact, it can help those traders who still find it difficult to draw support and resistance. And how to draw levels with this tool, "like mortars", I will show you later. Simply, you have to understand that drawing levels is a subjective matter, each person sees something different.
For example, if you ask, say, 10 traders to draw levels under the same conditions, I assure you that most of them will draw levels differently. Where one sees a bunch of levels, the other trader will not see anything at all.
Want to try the method here that works on MT4
That is why methods such as VSA or Price Action cannot be automated. It's all about their subjectivity, and all the tools that are related to these techniques will still be focused on statistical data.
Details
If we talk about the High low instrument, then you can use it on any interval and on any currency pair. In fact, this tool is an assistant that can indicate to us that we are approaching one or another extreme of the market.
As you should understand, the price is not always able to break through this or that extremum right away, especially if it is very significant for the market. As a rule, from significant extremes occur, if not trend reversals, then at least protracted corrections.
How can this be used? For example, you have an indicator strategy and you have additionally installed the High low instrument on the chart. Your system tells you what to buy. But at the same time, you see that the price has reached an important maximum. And here you can do in two ways:
- Take risk in the hope that the price will overcome the maximum. But here you need to understand that this is a risk and the likelihood of a loss is very high.
- Realizing that the price can give a significant reaction to the extreme, do not enter the trade at all.
Here everyone will decide for himself what to do and how to do it. Again, everything is very subjective and no one can force you not to enter this or that deal, and vice versa, enter it. Of course, if you install this instrument on the chart and, for example, will stupidly work on rebounding from extremes, then this will also be of little use, because it will be a non-systematic approach. A non-systemic approach will always lead to losses.
As for the settings, there is only one variable within which you set for how many candles to search for the market minimum and maximum.
How can you use it in practice?
Remember, I told you that the High low signal tool can be used by those traders who still find it difficult to draw levels. Of course, I would not recommend that you dwell on such instruments for a long time, none of them will draw the level as well as the skillful hand of an experienced trader can do.
So what's the point of this approach? In this case, you sequentially set the instrument on the chart with the price, changing the period, for example, to the following parameters: 50, 100, 150, 200, 250, 300, 350. Thus, we will “fire”, like mortars, a certain part of the chart, and, figuratively speaking, the funnels will become levels for us.
This amount will be enough for you to get quality levels. Let's try.
Here we set our High low with a period of 50. It automatically marked the levels for us. We duplicate them with horizontal lines and remove it from the chart. It turns out like this:
Now, we put it back on the chart, go to the High low settings, and change the period to 100.
Additionally, High low marked this extremum. We draw a line along it and one more level is obtained.
Now we already have 3 strong enough levels that can be used. Well, by analogy, we carry out the same manipulations for the remaining number series, which I indicated to you. In the end, we get the following picture:
Concepts High and Low in Forex refer to the basic terms of the foreign exchange market. This is the basic knowledge that beginners get to know first. What it is? How are candle highs and lows used in Forex trading?
What is High and Low in Forex?
Hai(from the English word high) - the maximum price of a financial instrument that took place in the market during a certain period of time. On the currency exchange, time periods are usually called timeframes.
They are the basic value for conducting technical analysis of the market situation. In the popular trading platform MetaTrader 4, there are several standard time frames - from minutes to weekly and monthly. High, the maximum price of a currency pair, different for each timeframe.
Lowe(from the English word low) - the minimum price that at least once was on the market for a currency pair or other asset during the period under consideration. High and Low are the upper and lower price boundaries of the minute, hour, day, week, month (depending on the timeframe).
High and low can be determined visually in Forex. To do this, you just need to look at the candle of the period that you need. The high of a candlestick is the highest high point, the end of its shadow or body. The low of the candle is the lowest point. High and Low form the price range of the time period in which you are considering them. For the daily timeframe, using High and Low, you can see the price movement corridor throughout the day. These levels are also strong support and resistance, but more on that later.
Trading methods using the minimum and maximum price values
As mentioned above, the boundary candlestick levels are strong support or resistance. Therefore, you can use breakout strategies in trading. As for the choice of the timeframe, it is recommended to trade on the daily timeframe. Market entries are allowed on H4. There are a lot of false signals at shorter time intervals. Recommended broker - company Forex4You or Alpari.
At the beginning of a new trading day, you need to draw two lines on the chart of the currency pair - High and Low in Forex. Outside these boundaries, pending orders should be set - buy stop above the maximum price of the previous day (for the daily timeframe) and sell stop below the minimum of the previous trading day. You should place orders at a distance of 10-15 points from the lows and highs so that the random noise of the market does not touch them.
After opening one of the orders, the second one must be removed by placing a stop loss for the first one in its place. The size of the take profit depends on the market situation. It is worth fixing profits at strong reversal levels, or using the possibility of a floating stop, having previously transferred the transaction to breakeven.
The downside to this strategy is that it only works well in trending markets. If a currency pair is in the flat stage, the system will give a lot of false signals.
Double high-Double low strategy
The next strategy relates to the Price Action methodology. From the name it is clear that we need to look for candlesticks with a double high or low in Forex. What do they look like and why is it needed?
The Price Action trading strategy involves the search for candlestick patterns - figures consisting of several candles of a certain shape. The Double High formation looks like two candlesticks with the same highs. Of course, you shouldn't look for absolutely exact matches down to one point. An error of 1-2 points is allowed.
The same is with the Double low pattern. The two candles must have the same lows. In this case, it is not at all necessary that they be located next to each other. A situation is allowed when 1-2 candles are located between them, however, they can go beyond the local extrema only as a shadow. It is believed that the probability of breaking through this level is higher than in the case when the candles inside the pattern do not go beyond its minimum or maximum.
The appearance of a double High and Low on the Forex chart of a currency pair indicates the emergence of an obstacle for the price, which sellers (“bears”) or buyers (“bulls”) did not let them go lower or higher. Accordingly, serious resistance should be expected at this point, which suggests trading on a rebound from the level. When and how should you enter the market?
The method of trading based on the Double High and Double Low patterns is considered trending, just like the pattern itself. Entering the market after the emergence of a candlestick formation should be in the direction of the main trend. After the formation of the Double high or Double low level, you should wait for the retest and follow the trend from the line on which the same price highs or lows were fixed.
Stop loss is placed outside the level formed by the patterns. There are no hard and fast rules regarding take profit. Since you are trading with the trend, you should not close the trade when the minimum profit is reached. Analyze the situation, find nearby strong levels, near which the price will provide further resistance to growth or decline, and set take profit near these lines.
The “Double Low” and “Double High” patterns are quite rare, however, it is almost always worked out in a profit during a trending market. A variation of the pattern is the Double Top or Double Bottom candlestick formation. At the same time, not one or two candles are located between the same highs and lows, but at least ten or more.
There are a lot of strategies based on the minimum and maximum price levels. Their main message is the same - the price has “tried” the mark and is not yet ready to move on. Next time, it will either behave in the same way, or it will be broken. Most trading systems do not disprove the fact that the high and low lines are significant in terms of a likely break or bounce and strong subsequent movement in the direction of the trend, allowing traders to make the most of the current trend.
Today's article will be useful mainly for beginners, as it will sanctify two basic concepts - High and Low Japanese candlesticks, without knowledge of which it will not be possible to understand any trading strategy or indicator. But for "advanced beginners" we also prepared special bonus- description of the trading strategy of the same name.
First of all, let's figure it out what is high and low in trading... Literally translated from English high means "high" or "highest point"... In other words, this is a local extremum of a certain value, which cannot be overcome at a given time interval, while any part of the system can act as an interval, depending on the goals set by the researchers.
It is not difficult to guess, and after the first glance at a regular chart it becomes simply obvious that in financial markets minutes, hours, days, weeks, etc. act as such a site. Unlike other systems, where the starting point of reference is selected by the user and tied to the first experiment (or other action), the high in Forex is calculated for rigidly fixed time intervals.
It sounds somewhat confusing, so in order to better understand the essence of what has been said, we suggest paying attention to the illustration below:
Of course, you can independently use scripts and advisors to build charts, the hourly candles of which will start, for example, from 15 minutes, but this is an extra waste of time, since on any exchange "round" periods have become the rule and all market maker robots are adjusted to the standard time. By the way, this is why candlestick analysis does not lose its relevance, as it is rigidly tied to time.
All of the above will be true for low on Forex, with the only difference that in translation from English this term means "the lowest level", which is represented on the chart by the minimum price of the candle.
Separately, it should be noted that absolutely every candlestick has its own high and low, in the example above we simply expanded the minute chart in order to better understand the structure and formation of the hour, but each minute also has a maximum and minimum price.
A controversial situation can arise only if only one quotation has been received. In this case, it is visually impossible to identify high and low, since they are simply equal, but formally, when exporting the archive of quotes from the terminal, the minimum and maximum will be indicated in the table, for example:
Another important nuance that should be taken into account when studying high and low on Forex is related to the regulations of dealing centers (hereinafter DC). The fact is that each company itself determines the time of the end of trading before the weekend, so the high and low of a Friday day candle in one company may occasionally differ from the values in other companies.
Why is this situation rare? Because in 90% of cases, by the evening of Friday, practically nothing happens, the market is lateral, and a deviation of 1-5 points is not critical, but against the background of geopolitical tensions (for example, missile strikes on certain territories, etc.) or of important international events (summits, forums) speculators in the spot market can start massively fixing positions in the very last hour of trading, when most DCs have already left for the weekend.
As a result, real daily high and low on Forex may differ from the "picture" in a particular terminal.
Forex strategy "high low"
In the context of the aforementioned trading system, highs and lows are used as signal levels when trading on daily charts. The fact is that in the overwhelming majority of cases the high and low of the previous day become strong resistance and support levels, respectively, since speculators place orders around them.
Without exaggeration, we note that almost every novice trader sooner or later notices this pattern, after which he makes a fatal mistake - he tries to work from these levels, i.e. makes counter-trend transactions. In fact, if you trade not on a pullback, but on a breakout high and low, then the financial result of the set of transactions improves markedly, but this will require the following steps:
- Open the D1 chart, mark the horizontal levels at yesterday's high and low;
- We place two pending orders, the first is a buy-stop for yesterday's high, the second is a sell-stop for a low;
- We mark the stop-losses of the pending orders in the reverse order, i.e. for a buy order - for low, and for a sell order - for high. The logic of this approach is extremely simple and follows from the above about the strength of levels;
- Take profit is set either in the size of the stop on the deal, or we replace it with trailing (the best option);
- We are waiting for the "activation" of one of the orders. An example of such a situation is shown in the figure below:
At the end of the day, it is necessary to put things in order in the deals, for which we delete all irrelevant pending deposits and update the markup taking into account the new high and low. At the same time, if there is a floating profit on an open position, we transfer it to the next day, but if the order turned out to be unprofitable, we close it.
In conclusion, we note that if the potential stop loss for a trade exceeds all reasonable limits, for example, for the EURUSD pair this value is more than 40 pips, then you can go in two ways, the first is to ignore the entry, the second is to reverse the hourly chart and place a stop behind the nearest one. minimum (for purchases) or maximum (for sales).
Hello everyone, Alexander Norkin is in touch. I continue a series of articles related to indicators showing the minimum and maximum prices of the previous days.
I think the developers did not think long about the name of the indicator being considered today. As for me, the name "Hi Low (v. 1) MTF", to put it mildly, is nothing. But, as often happens, behind an inconspicuous name, lies a huge potential.
Of the entire pack of indicators marking the maximum and minimum, I liked this indicator the most. I even, in order to keep the intrigue, wanted to leave it for last, but today I sat down to the description and accidentally stumbled upon it. Well, well, he means he. It seems destiny to be one of the first to describe it.
Hi Low (v. 1) MTF indicator settings
The indicator has a great variety of settings. To fit the full set of things that can be changed, I even had to make two screenshots, which I post below.
By activating the indicator, by the way Hi Low (v. 1) MTF is not included in the standard set of the MT4 platform, it needs to be downloaded separately, more on that below, a standard settings panel opens in front of us, in which, as usual, we see 5 tabs:
- About the program. A little information about the programmer, etc.
- Are common. The tab includes a standard set of settings related to attaching various libraries.
- Input parameters. Let's dwell on this tab in more detail, read on.
- Colors. Sets the color of the indicator, but in this case the tab is not involved in the settings.
- Display. There is a choice of timeframes on which the installed indicator should be displayed.
In general terms, we got acquainted with the settings, now let's figure it out more closely with the most important settings, the "Input parameters" tab.
As you can see, there are really a lot of settings. Before writing the article, I dig deeper into almost everyone and I must say everything is done at the highest level.
- CountDays. The value of the number of days of interest to be displayed by the indicator is set.
- Show_LABELS. The "true" command activates all the labels, the "false" command deactivates all the labels.
- Show_CurrDaily. The "true" command activates the display of the current maximum and minimum price levels, the "false" command deactivates.
- Shift_CurrDaily_LABEL. Sets the indent from the right edge.
- Show_CurrWeekly. The "true" command activates the display of the high and low price levels of the current week, the "false" command deactivates.
- Shift_CurrWeekly_LABEL. Sets the indent from the right edge.
- Show_CurrMonthly. The "true" command activates the display of the level of the maximum and minimum prices of the current month, the "false" command deactivates.
- Shift_CurrMonthly_LABEL. Sets the indent from the right edge.
- line_color_CurrDailyUPPER. Select the color of the line of the current day's high price level.
- line_color_CurrDailyLOWER. Select the color of the line for the current day's low price level.
- line_color_CurrWeeklyUPPER. Select the color of the line for the high price level of the current week.
- line_color_CurrWeeklyLOWER. Select the color of the line for the lowest price level of the current week.
- line_color_CurrMonthlyUPPER. Select the color of the line for the high price level of the current month.
- line_color_CurrMonthlyLOWER. Select the color of the line for the minimum price level of the current month.
- CurrDaily_LineStyle, CurrWeekly_LineStyle, CurrMonthly_LineStyle. The variable offers to set the line type for the daily, weekly and monthly levels, respectively.
These are the basic settings for visualizing the Hi Low (v. 1) MTF indicator, I think you will figure it out for yourself, the more the principle is the same.
Hi Low (v. 1) MTF indicator on the chart
After the settings have been made, the indicator will mark all Hi and Low, as well as sign the levels and display as shown in the figure below.
A more global display is not visible on this screen, but still, using the example of marking the maximum and minimum prices of the previous day, we can see the following: yesterday's Hi and Low are marked with lines, but not on yesterday, but on today, thereby making our work easier. Now you can immediately see whether the price has broken through the indicated level or not.
Exactly the same happens with longer periods.
Setting the Hi Low indicator (v. 1) MTF
As mentioned above, the Hi Low (v. 1) MTF indicator is not included in the standard set of the MT4 terminal, it will have to be downloaded and installed, therefore, below I give a link to download the indicator:
The archive contains only one file with the .ql4 extension, which means that the developers do not mind that users, if necessary, modify the indicator. Therefore, whoever knows the programming language and has "what to say", realize your fantasies and do not forget to share your creation.
By the way, if anyone does not know how indicators are installed in the MT4 trading terminal, be sure to read.
Conclusion on the indicator Hi Low (v. 1) MTF
In this article, I talked about the indicator that displays the high and low prices of the previous days Hi Low (v. 1) MTF. We got acquainted with the settings in detail and saw how it looks on the chart.
There is no fantasy in the indicator. Who needs an indicator to display Hi and Low, without additional chips, is ideal. And yet, I am a little mischievous and will offer an addition in the form of Alerts. In my opinion, if a warning signal sounded at the intersection of Hi or Low, it would be much more interesting. After all, we are not always at the computer. But in general, the product is solid and, I think, you can use it.
I will end on this. Good luck with the installation and subsequent trading. Until new articles.
Reading time: 6 minutes
Sometimes simplicity is strength.
This is especially true if you are new to the analysis and trading of the Forex and CFD markets.
There are several modern tools out there, but their complexity can often be a hindrance to their use.
If you are new to Forex trading, you are probably looking for easy-to-use tools.
A useful tool that meets these requirements is.
Simply put, High Low indicator
- displays horizontal lines on the chart that
- represent a high and low price for a certain period.
Why is the High Low indicator useful?
Because it has to do with how we process information.
For most people, information is easier to digest when presented visually.
In fact, it is for this reason that we use in the first place.
Without the High-Low indicator, we would need to compare daily highs and lows with recent trading ranges by looking at the raw numbers:
It would be tiresome at best.
The High Low indicator displays daily highs and lows as horizontal lines, so you can see at a glance how the current day is coming up in the context of the latest market indicators.
If you have never traded with this indicator, you are probably still using the original version of the MetaTrader 4 platform.
The High Low indicator comes bundled with (MT4SE).
What it is?
Among other things, the High-Low indicator is just one of the many additional indicators and tools offered by the MT4SE plugin.
High Low indicator - what is its importance
First, let's talk about how the High-Low MT4 indicator can improve the quality of your trading.
One of the most widely used methods for assessing price movement is comparing current highs and lows with previous ones.
This method is a bit dated, but its main advantage lies in how widely it is used by other traders.
For example, if the current high is below the recent highs, it could cause other traders to view the current trading price as cheap.
In turn, this can create buying pressure and lead to higher prices.
Likewise, if the low is higher than recent lows, it can attract sellers to the market.
After that, he can reduce prices.
This is basically how the levels are formed.
Of course, the market is less predictable and therefore may not always react in this way.
Nevertheless, using the High-Low indicator is a good starting point for predicting price movements.
The High-Low indicator is also very easy to use.
This simplicity means that even beginners can learn how to use it in no time.
So, if you want to get additional features of MetaTrader 4, but don't know where to start:
Below we will talk about some of the MT4SE features.
For now, let's take a look at how to use the High-Low indicator.
Using the MT4 High Low indicator
After installing MT4SE, you will be able to see all additional indicators listed in the Navigator on the left.
From there, launching the High-Low indicator will be just a couple of clicks.
When you run it, a window will appear indicating the various variables used by the indicator.
The tool may seem simplistic at first, but it also offers a high degree of flexibility:
Because you can change any of the listed indicator variables.
These variables include:
- Timeframes for Highs and Lows
- whether to start from the current or previous bar
- number of bars to include
- daily time range
- line color and style
- offsets for expansion from maximum to minimum
- alert settings.
If you're happy with the defaults, click OK.
The indicator will be applied to your chart at the same time.
The picture above shows the daily EUR / USD chart with the high and low of the current day.
Can you see how easy it is to compare the current day's range with the latest market figures?
Changing variables in the High-Low indicator settings
When it comes to customizing the High-Low indicator for your needs, there are no limits.
Some of the changes are pretty trivial and straightforward, like changing the color of the lines.
But some changes are less obvious, such as changes to a variable.
It's a very simple process - you just need to double-click on the corresponding field when you first add the indicator.
Alternatively, you can change the indicator you have already added:
- go to the "Charts" tab
- select a list of indicators
- select Admiral High-Low
- click "Change".
For example, in the image above, I:
- Double clicked on the field next to the timeframe for highs and lows
- changed the value to W1.
The default value corresponds to the chart timeframe.
By changing the value to W1, I switched the timeframe to weekly.
Setting up alerts in the High-Low Forex indicator
Another useful feature is the ability to set alerts for a price that crosses a high or low line.
What is the advantage?
Alerts let you know when a key level is violated, even if you are working on a different chart.
In addition, you can customize the alerts to your liking, for example by setting them as text or sound.
Summing Up: Forex High Low MT4 Indicator
In this article, we have tried to explain that the High-Low indicator:
- is a simple and easy-to-use trading tool that
- allows you to quickly compare the high and low of a specific period with the latest market ranges, and
- this is a good way to start exploring the powerful tools provided in the MT4SE plugin, such as proven indicators such as Donchian channels and Keltner channels.
As with other indicators, the High-Low indicator will probably work best when combined with other tools:
Which you can practice for free at.
Continue your Forex training
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