Introduction to the Grid Indicator
The Grid feature of the MT4 platform might be one of the most overlooked features that it has. It might seem like a nuance, but it is a useable feature especially for traders who use exotic trading strategies such as Cost Averaging and Grid Straddling.
The Grid Indicator was developed to improve on the basic Grid feature of the MT4 making it more modifiable for traders.
What is the Grid Indicator?
The Grid Indicator is a simple technical indicator which automatically plots a grid on the price chart according to the users preference.
This indicator plots a dot-dot-dash horizontal line with colors alternating dim gray and royal blue. The distance of the horizontal lines would depend on the number of point distance the user sets within the input settings. However, if this input field is unchanged, the indicator would automatically plot the lines based on the available price range on the price chart.
It also plots dashed vertical lines to separate periods based on the appropriate division of periods for the timeframe. For example, on the 1 hour chart, the indicator would separate periods by days with a deep pink line and by month with a gold vertical line.
How the Grid Indicator Works?
The Grid Indicator uses a simple algorithm that simply plots the horizontal lines and vertical lines. The horizontal lines are based on the round numbers spaced by the number of points set by the user. The spacing can be modified within the indicator settings. However, if left unchanged at zero, the indicator would plot the spacing based on the round numbers available on the price chart.
The indicator also plots vertical lines based on the period separators which is an option within the MT4 platform. It plots deep pink bars for the minor period separations such as days, and gold lines for major period separations such as on a month to month basis.
How to use the Grid Indicator for MT4
The Grid Indicator has just one variable which can be modified within its indicator settings.
This variable input allows users to modify the spacing between each horizontal line. This value is in points. The example shown above uses a 200 point spacing. This means that the spacing between each horizontal line would be per 200 points or 20 pips. Users who prefer using pips should just multiply their desired pip spacing by ten to convert it to a point based spacing.
Grid Indicator Versus MT4 Grid
The Grid Indicator is very similar to the Grid option which comes with the MT4 platform. The difference is that the MT4 Grid option does not allow users to modify the spacing between each horizontal line, while the Grid Indicator does. This allows for a more versatile grid spacing.
Grid Indicator Versus MT4 Period Separators
The vertical lines of the Grid Indicator are also very similar to the Period Separators option of the MT4. The difference is that the Grid Indicator differentiates between a major period and minor period separation such as that between months and days. Separations between months are in gold, while separations between days are in deep pink.
Conclusion
The Grid Indicator may seem like a redundant indicator as the MT4 platform already has a Grid and Period Separator option. However, it does have certain features that could be very helpful for traders.
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