Swing High Low Indicator MT4
Hello everybody! Today on Best MT4 Indicators we are going to give a review about the swing high low indicator mt4. The Swing High low indicator MT4 displays swing highs as well as swing lows about price movement as it fluctuates.
This indicator is indeed a zigzag indicator but is a lot more improved than the zigzag indicator that comes embedded in the MT4 charts.
From this indicator, the following can be identified, and they are:
1. Trend lines
3. Support and resistance levels
4. Additional chart patterns such as ascending or descending triangle are included.
Drawing Trendlines Using the Indicator
When drawing upward trend lines, identify a minimum of two (2) blue dots, then you draw it like this:
When drawing downward trend lines (to show downtrend), identify a minimum of two (2) red dots then you draw it like this:
Drawing Channels Using The Swing High Low Indicator MT4
The indicator can also be used to draw the following:
1. Downward price channels
2. Upward price channels
3. Sideways price channels
The following chart exemplifies upward price channel:
The Swing High Low Indicator Mt4 is suitable for drawing price MT4 chart patterns
An indicator is a valuable tool in assisting the trader in identifying price charts. A good example is the following ascending triangle chart that is generated:
Be very careful while attempting to choose an indicator that comes across as Swing high low Indicator MT4 since there are countless false indicators out there. A good number of them try to repaint the same movement (swing) every time instead of identifying the real Swing highs and lows. However, this indicator detects the minor and major swing highs/lows correctly. You are kindly advised to avoid using minor swing highs and lows. Is this indicator the best non repainting forex indicator for day trading? Well that is a bit personal off course. Some traders will prefer other trading indicators.
Trading on major swing highs/lows is strongly advised. Swing low occurs when price action displays a low and immediately is followed by 2 succeeding higher lows. Similarly, swing high occurs when price action hits a high and gets supported by two succeeding lower highs. You can combine this indicator with one off the best volume indicator on the market.
Essential Parameters in the Indicator
Before using the Swing High Low Indicator, consider the following default settings that come with the indicator. Changing them to suit your trading style and strategy is up to you. They include:
Size of the minor swing – 1
Size of the Major swing – 3
Minor swing period – 5
Major swing period – 13
Moving Average Period – 55
Strategies For Forex Trading Using Swing High Low Indicator Mt4
Adequate knowledge of the indicator can afford the trader the ability to play around varying trading strategies. Many of the current indicators in the forex market perform excellently in only trending markets. On the contrary, the indicator can significantly assist in trading non-trending market scenarios as well.
This indicator is common to all the existing trading charts. Regardless of timeframe and market, this concept works for all. Having a good grasp of how the lows and highs of a swing function will sharpen a trader to be able to day trade and also swing trade on the market. TIP: Read our latest proven best forex indicators article and see which indicators can help you with your trading.
Using this strategy, we employ the default 55-period figures if trading in bigger time frames such as 60 minutes and 240 minutes. On the other hand, when trading smaller time frames like 5 minutes, 15 minutes, choose lower EMA values.
Example of a Buy Trade
It goes thus, as the 55-day EMA figure reduces lower than the price action and the Indicator prints lower high, which implies the existing buying trend is set to continue. With this indicator, one can produce three to four successive trades in a god trend. Afterwards, it turns sideways for a while for the new trend to begin.
As shown in the chart below, 55 days EMA stood lower than the price action, so our indicator offered four buying trades concerning the EURGBP pair. Fifty-five days EMA can also be described as the golden time EMA, even spotting the smaller timeframe trend on a complete trend. Kindly close your trade position when as EMA moves past price action, as well as the indicator shows a lower high.
Example of a Sell Trade
In the EURJPY chart below, this market was seen to move a range. Our EMA was also moving, but between the price, so when it moved higher than the market price action, the indicator likewise prints higher low, a clear signal for a trader to activate a sell trade. Don’t forget to place the stop loss higher than the latest high and end your trade as the market produces a contrary signal.
Strategy 2 – Using the Indicator and Trend line trading strategy
In Forex Trade market, trend lines are one of the commonest and valuable instruments for technical traders. As an indicator, Swing High Low picks out a trend or consolidation stage in the market. Trend lines connect the swing highs and swing lows in price. As the price goes up, the swing low follows suit.
Buy Trade Example
In the chart that follows below, the market was on the uptrend. Swing Point Highs and Lows Indicator for MT4 and ascending trend line were paired to spot the trading signals. Recall, this indicator can identify both the minor and major swing high as well as lows. Slight swing high lows produce minor trading signals which are useful for scalping.
If you pair ascending trend line with this indicator, take buy trades while avoiding sell trades. On the other hand, if you pair it and descending trend line, make sell trades only.
The chart below shows the ascending trend line paired with the indicator to detect the buying trades. Immediately the market meets the lower trend line; the indicator also produces swing low, a hint for the trader to pick the buy position.
It has been observed that prices usually respect a trend line; hence, always place your stop loss lower than the recent low. When the market is very volatile, make use of a broader stop loss. End your position if market prints a key (major) swing high.
Sell Trade Example
Both Trend lines and the indicator are useful tools that have the potential to display short-term trends in the general trend. As the price goes down, the swing high goes up. By joining the swing highs with one line, a descending trend line will be obtained. This implies that the trend has fallen.
As depicted in the following chart, this strategy produced four successive sell signals in just one pair. As the prices meet the trend line; in addition, it respects the zone, one can even scale his selling trade. The chart shows that the market produced 4chances to scale the trade. End your full position as prices break through the trend line.
Conclusion for Swing High Low Indicator MT4
The Swing High Low Indicator occupies a leading position in the ladder of profitable tools and Indicators in the Forex Industry. As opposed to other indicators, it won’t just repaint swing high lows made for the trader. For day traders, scalpers, investors and chartists this indicator is handy as it easily works in all market conditions as well as on all trading timeframes. A trader can also use this indicator in combination with other top 10 mt4 indicators to identify more precise trading signals.
You should always trade with this indicator after consulting other tools and techniques for sensible trade decisions. Our website has a range of tools and Indicators that any trader would find very valuable in advancing his trading skills and increasing profits. So, please take advantage of it and improve your earnings through this link.
Lastly, how do you use this indicator to trade the market? Feel free to leave us a comment below