Beginner Indicator
The Beginner indicator for MT4 displays the significant highs and lows of the price within a trading period.
Description
The Beginner indicator for MetaTrader 4 is an easy-to-use trend-following system that analyzes the financial market and then displays the significant highs and lows printed by the price. It does this by comparing the peaks and troughs of the prices with the trading range covered within a period.
Furthermore, the highs and lows identified by the indicator are zones of interest because they tend to act as support and resistance zones, especially when broken. Thus, the price may likely reverse when it gets to any of the zones or continue trending when it breaks and retest the zones.
Therefore, the indicator may be used to identify trend reversal or trend continuation buying/selling opportunities when the price approaches the highs/lows or breaks and retest it. However, it is important to mention that the indicator isn’t recommended to be used as a stand-alone tool because it redraws the dots at some point.
How to Trade With the Beginner Indicator
The above image depicts the action of the Beginner indicator on the EURUSD pair in the M30 timeframe. The indicator marks valid swing highs with red dots and lows with blue dots, which are potential resistance and support zones, respectively. However, the blue and red dots are not signals to buy or sell an asset but simply represent pivotal zones in the market.
So, the blue and red dots are zones you need to watch out for as the price approaches either of them for a possible buying or selling opportunity. Furthermore, you may also refer to the above image, which illustrates how a buy signal was generated after the price breaks and retest of the red (resistance) zone.
Conclusion
The Beginner indicator for MT4 is recommended to be used with price action/other technical indicators before making any trade decision. Furthermore, you can also download the indicator for free today.
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