• The high-low indicator is a simple trading indicator that can be used by novice traders
• This indicator helps traders identify potential support and resistance levels
• The MT4 high-low indicator is a channel-type indicator, which marks extremes of price action in the chart
• This indicator uses a special algorithm to identify the highest highs and lowest lows over the past periods, which can be individually chosen by traders

If you are new to technical analysis, you need to start with something simple and easy to use. A great option for such traders is the high-low indicator. When used, this indicator plots two horizontal lines on the chart, which represent the high and the low of a certain period. One might ask, why is the daily High and Low indicator useful?

The main reason behind it is quite simple. For many people, perceiving information when it is displayed visually is a lot easier. Without this indicator, you would have to compare the prices by looking at raw numbers, which is not exactly the best and most efficient way to do analyses.

The main idea behind using this indicator is to identify the highs and lows with just one look at the indicator. The high-low indicator comes built-in with the MetaTrader 4 trading platform, so there is usually no need to download it separately.

The MT4 daily high-low indicator can be used by Forex traders to identify short-term support levels in the market, as well as the short-term resistance level. Support in Forex occurs where a downtrend is expected to end, and resistance occurs where the uptrend is expected to pause. These can be viewed as the maximum points to which the price will potentially increase or decrease.

You can further confirm the information that you have received from using this indicator by employing fundamental analysis and closely following the market news. 

The best thing about this indicator is that it can be used with many different trading strategies. While most people use it for short-term strategies, it is also quite helpful for long or mid-term trading strategies.

How can you use it?

We have already discussed that this indicator can be used by traders to determine the support and resistance levels when trading Forex. But, how do you identify the high and low of the day in Forex by using this indicator? That is actually quite easy, as this indicator provides you with information that can be easily understood with just one look at the chart.

As already noted, this indicator does not require a separate download as it comes pre-installed with MetaTrader 4 and is built-in to most trading platforms. Once you open the trading platform, you can simply go to the “Navigator” section, look for “Indicators”, and search for the “daily high-low indicator”.

After doing so, you can simply double-click the indicator, set the settings according to your personal needs, and let the indicator do its job. This makes the indicator very easy to use. You can also set the colors of the indicator according to your preference. 

This indicator can be used for numerous reasons in the Forex trading market. Among many others, it can be used to formulate breakout strategies. Many traders can use this indicator to add value to their individual experiences. It is a widely adopted method to use this indicator to assess price movements and compare the current highs and lows to previous ones. 

As we have already discussed above, this indicator is very frequently used in the market to identify support and resistance levels, which further increases the importance of the previous high and low. 

Finding support and resistance levels in the Forex trading market is very important for creating a trading plan. Having a well-developed plan is pivotal for making it in the Forex trading market. This way, you will know exactly what to do at any given moment while trading.

Analyzing trends with the best high-low indicator

A huge advantage of the daily, weekly, and monthly high-low indicator in MT4 is that it can also be used for identifying trends in the Forex trading market. For example, if you use it on a chart that has shown a gradual downtrend in the price movement, you can tell that there is a negative trend in the market. 

Paired with other indicators, traders can also find possible points on the chart where the trends could change. 

As with anything else in the Forex trading market, the MT4 high-low indicator also comes with numerous advantages and disadvantages that traders should know about. 

While this indicator can be an amazing tool for beginners to determine the price movements in the market, it can also be insufficient for more experienced traders. We will discuss the major pros and cons of this indicator below.

Advantages

• Is very easy to use even for the least experienced Forex traders in the market
• Comes built-in with MetaTrader 4 and does not require a separate download
• Visually represents price movements in the market, making it easier to comprehend
• Indicators of high and low prices in Forex can be used by traders to determine support and resistance levels
• The previous day's high-low indicator is great for short-term strategies, and can also be used by long-term traders

Disadvantages

• For some traders, the information received from the high-low indicator is simply not enough
• On its own, it is not absolutely accurate. It is usually used in conjunction with other indicators, as well as fundamental analysis

• High-low channel indicators are a great option for beginner traders as it is very easy to comprehend
• This indicator works by visually representing the highest highs and lowest lows over certain periods, making it easier for traders to perceive information
• A high-low indicator can be very easily tweaked and changed according to traders’ individual preferences on the MT4 platform