i-High Low Indicator for MT5

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i-High Low Indicator for MT5

Introduction to the i-High Low Indicator

The i-High Low Indicator is an indicator which makes use of the range of price action in determining the general trend and momentum direction of price. It is a channel type of indicator which is based on the highs and lows of the price range.

What is the i-High Low Indicator?

This indicator plots three lines. It plots a gray middle line, a blue upper line, and a magenta lower line. The upper and lower lines indicate the range of the recent price action movements, while the middle line indicates the average of the price range.

i-High Low Indicator for MT5

How the i-High Low Indicator Works?

This indicator plots the outer lines based on the highs and lows of recent price candles preset at 20 candles back. It also adds an offset from these price extremes preset at 50 points from the extremes.

Using these presets, the upper line is the highest high of the last 20 bars with an offset of 50 points above the high. Inversely, the lower line is the lowest low of the last 20 bars with an offset of 50 points below the lowest low.

The middle line is simply the median of the high and low and is calculated by adding the high and low, then dividing it by two.

How to use the i-High Low Indicator for MT5

This indicator has three variables which traders can use to adjust the i-High Low channel.

“The number of candles for determining extremum” refers to the number of bars which the highest high and lowest low of price will be based on.

“Width of the offset from the candlestick in points” refers to the number of points which would be added to the highest high and subtracted to the lowest low to determine the channel range.

“Horizontal shift of the indicator bars” allows users to shift the channel forward or back.

How to use the i-High Low Indicator for MT5

This indicator can be used to determine trend or momentum direction based on which half of the channel price action generally is residing.

Traders can also use the middle line as a basis for pullbacks during a trending market condition.

Buy Trade Setup

When to Enter?

Price action should generally be on the upper half of the channel. Wait for price to pullback towards the middle line. Open a buy order as price forms a bullish reversal pattern near the middle line. Set the stop loss below the pattern.

When to Exit?

Close the trade as price action shows signs of a bearish reversal.

How to use the i-High Low Indicator for MT5 - Buy Trade

Sell Trade Setup

When to Enter?

Price action should generally be on the lower half of the channel. Wait for price to pullback towards the middle line. Open a sell order as price forms a bearish reversal pattern near the middle line. Set the stop loss above the pattern.

When to Exit?

Close the trade as price action shows signs of a bullish reversal.

How to use the i-High Low Indicator for MT5 - Sell Trade

Conclusion

The i-High Low Indicator is a tool which can be effectively used for determining trend and momentum direction. Price typically stays on the upper half of the channel in an uptrend, and on the lower half of the channel in a downtrend. However, price action would typically crisscross over the middle line during non-trending markets.

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