High Low Price MT4 Indicator – Free MT4 Indicator

The High Low Price Forex trading strategy is a trading strategy for the forex market which identifies areas of support and resistance in price action, thereby providing a solid basis for the trader to trade along the prevailing trend. And to make this strategy easy for you to trade, we have made available the High Low Price MT4 Indicator to assist you in trading this strategy easier. This is a versatile approach to the market and can be used on all Forex pairs including Gold and Silver. If you like automated trading solutions that work, then you gotta check out this PROVEN MT4 solution.

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The High Low Price MT4 Indicator Trading Rules

The strategy is to allow the indicator to plot the blue resistance line and the red support line on the price charts. These lines demarcate the areas where price forms resistance as well as support. The indicator looks at the historical price action to identify where price has made highs and lows and proceeds to use these key areas to plot the resistance and support lines on which the trader can base future trades.

Once these lines have been traced by the indicator, the trader can then setup range trades by buying on support or selling on resistance.

Long Trade Entry Rules

A long trade entry is made when the following setup is displayed on the chart:

• Price bounce on the red support line. In other words, price touches the red support line but does not close below it. This is a sign that the support is not broken and is still a valid support.
• When the next candle opens, the trader should set-up a BUY LIMIT order using the price of the support line as the entry price. This will allow the price action pull back from the close of the previous candle to the support line so that entry is very precise and does not give away pips to the market.

In this chart, two areas where long trades can be setup are shown. We can see in the second trade that there are several points at which the trader may decide to take profit. Despite the fact that this snapshot was taken from a H4 chart, we can see how tight the stops are because of the precise trade entries made at the red support line.

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Stop Loss and Take Profit Settings

The entry made at the support line allows the trader to set very tight stops. The trader should look to some previous candles to see how low they went below the support before closing above it, and set the stop loss below the lows of these candles. The stop loss should be located below the support line.

The Take Profit point will naturally be at the next key area of resistance, which is the blue resistance line. However, it is essential to provide trade protection for the price action by setting a Trailing Stop once price action has moved to a certain distance into profit territory. There are no hard and fast rules as to where to set the trailing stop. This is purely at the trader’s discretion.

The trader may also decide to scalp off profits by closing trades manually when they are in some profit, and allowing the price to come back to the support line from where new long entries can be made. This works pretty well especially as most of the trades take a long time to move from one end of the range to another, as shown in our trade example. 

Short Trade Entry Rules:

A short entry is made when the following setup occurs on the charts:

• Price rises to touch the blue resistance line without closing above it. Sometimes the price will actually move above the blue resistance line but will fall back to close below it.
• When the next candle opens, the trader should setup a SELL LIMIT order using the price of the resistance line as the entry price. This will allow the price action pull back up from the close of the previous candle to the resistance so that entry is very precise and does not give away pips to the market.

High Low Price MT4 Indicator Short Trade Rules

High Low Price MT4 Indicator Stop Loss and Take Profit Settings

The entry made at the resistance line allows the trader to set very tight stops. The trader should set the stop loss above the resistance line and above the most recent candle highs so that any attempt by price to move above the resistance does not trigger off a stop loss.

The Take Profit point will naturally be at the next key area of support, which is at the red support line. However, the price action may take a while to get there and will dither along the way at several points. These points are areas where the trader may decide to close the trade manually in profit, or setup trade protection for the price action by setting a Trailing Stop. Trailing stop settings are purely at the trader’s discretion.

The trader may also decide to scalp off profits by closing trades manually when they are in some profit, and allowing the price to come back to the resistance line from where new short entries can be made. The best places to do this are where price action stalls as it heads downwards. This can be seen in the trade example above.

Time Frames
Technically speaking, you can use this indicator for all time frames. However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly. We recommend that you use higher time frames like the 4H for better consistency.