Free Forex Indicators (MT4), Trend Following Indicators

Horizontal Grid Lines Indicator

The Horizontal Grid Lines Indicator is automatic support and resistance identifying tool for MT4 platforms. This indicator is an ideal creation for the newbie trend-following forex traders who seek true support/resistance of the price while scalping in the market.

Horizontal support and resistance levels help traders to spot potential areas for activating the trades during trend-following and sidelined conditions of the market. Besides, it identifies key breakout levels of the price throughout the busiest forex trading sessions.

In this guide, we’ll discuss what is Horizontal Grid Lines Indicator and how to trade using auto support/resistance tool in live markets.

Horizontal Grid Lines Indicator Overview

After installing the Horizontal Grid Lines indicator in your MT4 platform, you’ll find multiple horizontal levels in your chart. These levels represent the grid lines that show the possible reversal areas of the price.

Horizontal Grid Lines Indicator Overview

The Horizontal Grid Lines Indicator uses a very simple technique for displaying the daily S/R levels of the price. So, besides experts, newbie traders find it quite useful for carrying out the daily technical analysis job. When you apply Horizontal Grid Lines on your MT4 chart, you never worry about missing out on key market levels.

Horizontal Grid Lines Indicator Explanation

The horizontal Grid Lines Indicator uses the last 10-weeks of price data for plotting the grid lines. Each of the lines is plotted based on a previous high or low of the price. If you can read how the price is reacting at the grid lines, you’ll be able to identify potential trade opportunities near the key support/resistance levels of the price.

Horizontal Grid Lines Indicator Explanation

Some basic price reversal patterns like a pin bar or false break are quite useful for detecting the trade opportunities at the horizontal grid levels. For example, a bullish pin bar at the horizontal support indicates the price is most likely to hit the nearest grid resistance next. Also, a bearish candle closes below the grid support means the price has just plotted a bearish breakout.

A false break at the grid-line suggests the price has failed to break a significant S/R level and intends to initiate a reversal move.

Check Out: Best Forex Brokers in South Africa

Horizontal Grid Lines Indicator: Buy Conditions

Horizontal Grid Buy Parameters
  • The Price shows a bullish reversal pattern at the grid support
  • The price breaks above the grid resistance
  • Place a buy limit near the support or a buy stop above the resistance
  • Place SL below the nearest grid support

Horizontal Grid Lines Indicator: Sell Conditions

Horizontal Grid Sell Parameters
  • The Price plots a bearish reversal pattern at the grid resistance
  • The price breaks below the grid support
  • Place a sell limit near the resistance or a sell stop below the horizontal support
  • Place SL above the nearest grid resistance
Share on:

I have been actively trading the financial markets since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

Leave a Comment

About Trend Following System

Trend Following System's goal is to share as many Forex trading systems, strategies as possible to the retail traders so that you can make real money.

Risk Warning: Trading in the forex market is very risky. Thus, it is may not be for everyone. A highly leveraged position can work against the trader when the trade does not work as expected. Trading in the forex market can cause to lose a significant portion of the capital or all of the capital. It is crucial to learn about the trading and gain enough experience in the demo account before trading with real money. The trading strategies published on this website do not guarantee profit as the market is dynamic and unpredictable. The past performance of a strategy is not the indicative of future performance. Trend Following System will not accept any kind of liability or damage caused by trading the strategies published on this website.