What is the Swing High Low Indicator on MT4?
The swing high low indicator on MT4 is similar to the ZigZag indicator. However, there are many false indicators on the market, so be wary when selecting an indicator that indicates swing highs and lows.
Instead of indicating the real swing highs and lows, these indicators repeat the same swing.
However, this indicator correctly recognizes the leading and minor swing highs/lows. We recommend that you avoid trading the tiny swing highs and lows because they will be subject to faster price movements. Therefore, you are more at risk of dealing with a loss in this scenario.
Ensure that you are only trading on more significant high and low swings.
When the price action gives you a low and it is promptly followed by two subsequent higher lows, this is called a swing low.
Similarly, a swing high occurs when price action produces a high that is supported by two straight lower highs.
Swing High Low Indicator MT4: Default Settings
The default settings of the swing high low indicator on MT4 are given below. You can adjust these to your liking once you recognize your unique trading style and gain substantial experience.
- Minor Swing Period is set to 5.
- The major Swing Period is set to 13.
- The size of a Major Swing is set to 3.
- The size of a Minor Swing is initially 1.
- The Moving Average Period is set to 55.
How To Use The Swing High Low Indicator on MT4
The Swing High Low Indicator is an MT4 indicator that provides information about recent swings. You may quickly go long or short by using it.
The indicator includes major/minor swing colors, sizes, and a moving average. Furthermore, any time there is a trend shift, the indicator creates a minor and major circle.
The moving average serves as a warning reference to validate swing lows and highs. As a result, if a trend shifts, you have the option to trade appropriately.
As previously said, swing point highs and lows provide an overall view of recent price swing lows and highs. Moreover, it is the simplest to follow since it informs you precisely when to input long or short.
The EMA included with the indication serves as a signal confirmation. This is especially useful when there is a lot of market volatility since it filters out all redundant market noise.
Different Trading Strategies with the Swing High Low Indicator on MT4 You Can Employ
It is best to try and find what strategy works best. That is done by completely understanding how the indicator works.
The majority of the market's current indicators are only effective in trending markets. However, you may also use the swing high low indicator MT4 to trade non-trending market circumstances.
Swing highs and swing lows are features shared by all trading charts. This approach may be used for any market, regardless of when you trade.
Understanding how to swing highs and lows function allows you to day trade and swing trade the market.
Swing High Low Indicator MT4 Strategies
If you are trading in greater time frames, such as 60 or 240, you may utilize the default 55-period values in this approach. However, if you are trading on smaller periods, such as 5 and 15, choose even lower EMA values.
The method is straightforward. When the 55-day EMA value falls below the price action and the Swing high low indicator MT4 prints a lower high, the purchasing trend is about to resume.
You may create 3 to 4 consecutive trades in a solid trend by employing this indicator. Then it might go sideways for a while, allowing the new trend to begin.
Swing high low indicator on MT4 also displays higher lows, indicating that we should execute our sell trade. Set your stop loss slightly above the most recent high and exit the trade when the market sends you the opposite indication.
Swing High Low Indicator MT4 Strategies
Trend lines are a popular and important tool for technical traders. They reflect a market trend or consolidation period. A trend line links price swing lows with swing highs. When the price climbs, so does the swing low as well.
As shown, this indicator indicates both the minor and major swing highs and lows. Modest swing high lows, as the name implies, provide minor trading indications that may be used for scalping. We will teach you how to exploit the significant swing high lows to generate some substantial money in the market with this method.
Suppose you use this indicator in conjunction with a rising trend line. In that case, you should accept purchase transactions and avoid sell trades. Conversely, if you pair it with a declining trend line, you should only take sell trades.
Prices often follow the trend line; therefore, always set the stop loss below the most recent low. If the market is very volatile, employ a larger stop loss. When the market prints a large swing high, you should close your trade.
The trend lines and the swing high low indicator MT4 are excellent tools for highlighting short-term trends within the larger trend.
For example, when the price declines, so does the swing high. A descending trend line will be formed by linking these swing highs with a line. This indicates that the trend is downward.
You may even scale your selling trade if the prices reach the trend line and respect the area. However, when prices break the trend line, you should close your whole trade.
You may use the swing high low indicator mt4 on any timeline. The 55-period EMA will assist you in reducing market noise. However, because there is no holy grail method, the indicator does have the potential for loss.
You may use the indicator in conjunction with oscillators such as the RSI or Stochastics to corroborate the indications and produce the best results.
Have you used this indicator? Post your comments below.