The Daily High Low Indicator is a technical analysis tool that helps traders identify potential price levels for a stock or other financial instrument.
It plots the highest and lowest prices for a given period on a chart, typically the daily or intraday time frame. This can provide traders with key levels of support and resistance, helping them make more informed decisions about when to enter or exit a trade.
The Daily High Low Indicator is available on most charting platforms and can be customized to suit the trader’s preferences, such as the period of time used to calculate the high and low prices.
It is also easy to read and interpret, making it a popular choice among traders of all experience levels.
The Daily High Low Indicator relies on horizontal support-resistance levels that guide traders through key trend reversal, price breakouts, and pullback buy-sell zones.
The indicator is plotted as two lines on the chart, one representing the daily high and the other representing the daily low. The daily high line is plotted at the highest price reached during that day, while the daily low line is plotted at the lowest price reached during that day.
These lines can be used to identify key levels of support and resistance for the stock or other financial instrument being analyzed.
- The price rejects a daily high-low support or exceeds a resistance.
- Set stop loss below the immediate support.
- Exit long when the price fails to move above a resistance.
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- The price rejects a daily high-low resistance or drops below a support.
- Set stop loss above the immediate resistance.
- Exit short when the price fails to break a support.