Higher Timeframe Indicator

Higher Timeframe Indicator

The Higher Timeframe indicator for MT4 displays the trend direction of any higher time frame of choice.

The Higher Time Frame indicator for MetaTrader 4 is a forex trading tool designed to help you keep a tab on the market structure in any higher timeframe of interest. It makes technical analysis a lot easier and enhances better trading decisions.

The above statement is valid because the act of trading along the direction of the timeframe which is higher has been established to be highly profitable, especially for day/intraday and swing forex traders. This implies that the indicator would ease the stress of always watching the market from a higher timeframe before making a trade decision.

Why are Higher Time Frames Better?
The higher time frames of a financial asset give a bigger picture of the overall trend direction of the market, while the smaller time frames follow suit. In other words, the lower time frames ultimately follow the direction of the higher time frames. So, if the daily time frame is bullish, for instance, a long-term buy setup would most likely play out more than a sell setup.

How to Use the Higher Timeframe Indicator

The above image shows the action of the indicator on the EURUSD currency pair in the H4 timeframe. It depicts the bullish trend in a higher timeframe with the lime-green bars, while the bearish trend with red bars.

The highlighted portion of the image shows that the trend condition of the daily candlestick is currently bullish, while the dotted lines are the highs/lows of the candlestick.

The indicator, by default, displays the trend bias of the daily (D1) candlestick; however, you may set it to display any timeframe (e.g. H4) of choice from the setting tab.

Conclusion
The Higher Timeframe Indicator for MT4 is recommended for both day/intraday and swing traders to keep a tab on the market structure on a higher timeframe. Finally, it is free to download.