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.
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.
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.
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Horizontal Grid Lines Indicator: Buy Conditions
- 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
- 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