Robust MT4 "HighLowMiddleLine" Indicator
The Don Chiang channel is an indicator that draws highs and lows for a certain period on a chart.
The indicator "HighLowMiddleLine (HLML)" for Metatrader 4 introduced this time is added to this Don Chiang channel. In particular, HLML should help those who trade breakout strategies.
Example of displaying this indicator on the EuroDollar hourly chart
This indicator draws three lines on the chart. The function of each line is as follows:
- Top line (red line): Highest value during a certain period (set in the parameter “Period”)
- Middle line (green line): Average of top line and bottom line
- Bottom line (blue line): Lowest price over a certain period
Tips for use:
1. Use this indicator in a breakout strategy
For example, if you break out of the red line at the closing price, look to place a buy order. The logic of this breakout strategy is that the idea of "beyond the highest price in a certain period at the close price = buying momentum is strong". Of course, if the price breaks below the blue line at the closing price, you can also aim for a sell order.
2. Utilize the middle line
Use the middle line for trading. For example, it can be considered that the trend is bullish (or bearish) if the price is higher (or lower) than the middle line = uptrend (or downtrend). It is also good to observe the slope of the middle line and interpret it as an uptrend (or downtrend) if the slope is upward (or downward).
In addition, this center line can be used for placing stop losses. For example, if you place a buy order after exceeding the red line, you may want to put a stop loss behind this middle line.
- Period - Defines the period used for indicator calculation
Download the "HighLowMiddleLine" indicator from the button below
Tip: Can’t open the downloaded archive file (ZIP or RAR)?
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.