Previous Close Indicator plots a line to remind you the previous candle close level. It comes very helpful especially when trading intraday strategies. When market moves sideways, the chances of price returning back to these levels is high, it has a tendency to respect these levels during corrective moves, before continuing.
While it’s not a good idea to merely trade these levels without further consideration, a closer look at what price is doing when it moves near them, is a very good confirmation to our trading strategy.
As you can see from the H1 chart below, the price reaches the previous day close level several time during the current day.
- File: previous_close.mq4
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