What is the Previous High-Low Indicator for MT4?
The previous high-low indicator (PHL) is a technical indicator that helps traders identify oversold and overbought conditions in the market. The PHL is calculated by subtracting the latest value of the closing price from the previous day’s opening price. When values are below 0, this indicates an oversold condition, while when they are above 0, it signals an overbought one.
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How to use the Previous High-Low Indicator for MT4?
The indicator works by analyzing the prices of two different assets – one that has been rising and another that has been declining – over a specific period. The idea is to find the intersection point between these two groups of values, indicating the market’s phase. From there, you can use this information to make informed trading decisions.
Previous High-Low Indicator MT4 trading settings
There are several settings you can tweak when using the PHL, including:
– Max distance between current and previous high or low values: This setting determines how far apart past highs and lows should be weighted for the indicator to work correctly. Higher numbers mean more importance is given to recent data, while lower numbers emphasize older data.
– Length of moving average used: You can choose whether or not a 12-, 24-, or 36-hour Moving Average (MA) is used. MA’s improve accuracy by smoothing out small movements over time and reducing noise caused by individual trades.
– Thresholds for triggering buy/sell orders: You can set different sell thresholds above which your account will automatically open buy positions; similarly, you can set minimum purchase thresholds below which your account will automatically close sell positions.
Previous High-Low Indicator Advantages
1. It alerts you when prices are about to change direction. The PHL can help identify shifts in trends early on, which can lead to profitable trades.
2. It provides stability and predictability during volatile times. When the PHL is stable and anchored close to the bottom band, it reduces volatility and makes market conditions more predictable for investors; this allows them to make more informed investment decisions with less worry about price fluctuations.”
3. It confirms trends and provides confirmation signals. The PHL helps you determine whether a trend has been established. If prices remain within the confines of the upper band over time, that is usually an indication that there is strong momentum driving prices higher). This can be a confirmation signal for future buy or sell decisions.”
Previous High-Low Indicator Disadvantages
Using a previous high-low indicator can be helpful when you’re trading forex. However, there are some disadvantages to using this type of indicator. Here are a few examples:
1) It can lead to overtrading and excessive market volatility.
2) The indicators may not always reflect the actual market conditions accurately.
3) They may be unsuitable for day traders who want immediate feedback on their trades.
Previous HL Indicator installation on MT4
Forex Previous High-Low Indicator installation on MT4 can allow you to identify the best time to enter/exit a position in forex. The indicator is based on two moving averages and signals when a market has crossed below or above the respective average. This allows traders to take appropriate action, such as selling or buying, before the prices move too far away from their original positions.
To install Forex’s Previous High-Low Indicator:
1) Open MT4 and click “Indicators” at the top of your screen.
2) Click on “Symbols” and select “Metatrader 4“.
3) Under the category of “Technical Analysis,” find “Previous High-Low” and drag it onto your chart area (you can also type its name into the search bar if it’s not visible).
4) Double-click on “Previous High-Low” to open its settings box.
5) In the first section, choose “Daily bars” under Time Frame. In the second section, under Settings, ensure that both Moving Averages are set to 0%.
6) Click OK to close the settings box after setting up your preferences.
When activated, the indicator will show a red line on your chart that indicates when prices have crossed below or above the respective average.
Previous High-Low Indicator mt4 free download
Conclusion
Previous High-Low Indicator installation on MT4 can improve your trading skills by allowing you to identify good entry and exit points.
