Introduction to the Horizontal Grid Lines Indicator
Most traders use technical analysis or fundamental analysis when trading the forex market. However, there are some traders who have outsmarted the forex market without the use of technical analysis. Some of these strategies are basically money management strategies that are quite out of the box. Some are basic money management strategies that allow traders to scale in and scale out of a trade. Others are riskier strategies which is aimed to outsmart the market.
These strategies often require traders to have a grid type of marker on the price chart to allow them to execute these strategies properly. The Horizontal Grid Lines Indicator is a tool which can be used if you are trying to explore such types of strategies.
What is the Horizontal Grid Lines Indicator?
The Horizontal Grid Lines Indicator is a technical indicator which plots a horizontal grid on the price chart, just as its name suggests. It is preset to plot horizontal lines with a spacing of 100 points or 10 pips in between each line. It also displays the number of points set as the spacing between each line on the upper right corner of the price chart.
How the Horizontal Grid Lines Indicator Works?
The Horizontal Grid Lines Indicator has a fairly simple algorithm within its program script. It has a preset grid spacing, which is labeled as “H-Grid Size in points”. The algorithm basically plots dashed horizontal lines based on the preset grid spacing, which is at 100 points.
How to use the Horizontal Grid Lines Indicator for MT4
The Horizontal Grid Lines Indicator allows traders to modify the spacing between each horizontal grid line. This can be modified on the “H-Grid Size in points” variable within the indicator’s settings.
It is important to note that the spacing unit is in points. Thus, for traders who are used to pips, simply add another zero to your desired spacing in pips, as this would be its equivalent in points.
There are also several aesthetic modifications which can be done within the settings. The style of line can be modified from a dashed line. The color of the line can also be modified from light slate gray. The width of the line can also be adjusted to make it thicker or thinner.
The label indicating the spacing between each line can also be removed using the “Show Label” toggle. Its color can also be changed and it can also be moved to different corners on the price chart.
This indicator does not produce technical analysis indications. However, it can be used for certain strategies that do not require technical analysis. This could be used for cost averaging money management strategies. It can also be used for trading grid straddling types of strategies. It can also be used as a basis for partially closing trades when scaling out of a trade or adding size when scaling into a trade.
Conclusion
The Horizontal Grid Lines indicator is not a technical indicator that produces trend or momentum direction indications and reversals. It does not indicate overbought or oversold price levels. More importantly, the gird lines it plots are not support and resistance levels. It is not an indicator which provides technical analysis indications.
Recommended MT4/MT5 Brokers
XM Broker
- Free $50 To Start Trading Instantly! (Withdraw-able Profit)
- Deposit Bonus up to $5,000
- Unlimited Loyalty Program
- Award Winning Forex Broker
- Additional Exclusive Bonuses Throughout The Year
>> Sign Up for XM Broker Account here <<
FBS Broker
- Trade 100 Bonus: Free $100 to kickstart your trading journey!
- 100% Deposit Bonus: Double your deposit up to $10,000 and trade with enhanced capital.
- Leverage up to 1:3000: Maximizing potential profits with one of the highest leverage options available.
- ‘Best Customer Service Broker Asia’ Award: Recognized excellence in customer support and service.
- Seasonal Promotions: Enjoy a variety of exclusive bonuses and promotional offers all year round.
>> Sign Up for FBS Broker Account here <<
(Free MT4 Indicators Download)
Click here below to download: