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Using Previous-Day High, Low, and Average Price as Chart Levels

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Summary

This document describes a MetaTrader 4 chart utility that calculates three reference levels from the prior trading day: the high, the low, and an average price. It draws them as horizontal lines, with user-adjustable color, thickness, and line style. The levels offer a visual way to compare current price action with the previous session’s range and midpoint-like reference, which some traders may use when watching for support, resistance, or turning points.

The document explains the display function but does not specify how the average is calculated, how trading sessions or markets with different hours are handled, or how the levels should trigger entries and exits. It provides no backtest or evidence that these lines predict reversals. The tool is therefore a charting aid; any trading rule built from the levels would require independent definition and testing.

Key ideas

  • The utility plots the previous session’s high, low, and average price as horizontal chart references.
  • Line appearance can be customized through color, thickness, and style settings.
  • The levels may help traders contextualize current prices against the prior day’s range.
  • The document gives no calculation details for the average or evidence of predictive performance.

Tags

Technical indicatorsEquitiesForex

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.