The Higher High Lower Low (HHLL) indicator is a simple indicator that visually represents to the user if a higher high or a lower low has been made.
If a higher high has been made, an up bar in the chosen color will be drawn. If a lower low has been made, a down bar in the chosen color will be drawn. Should a higher high and a lower low be made in the same bar, a bar up and down bar will be drawn in a third color of choice. If an inside-bar is rendered, then no up or down bars will be drawn.
This visual configuration makes it easy for the user to identify if bars are making higher highs or lower lows.
- UP Color – The color of the up bar drawn when a higher high is made.
- DOWN Color – The color of the down bar drawn when a lower low is made.
- BOTH Color – The color of the up and down bar drawn when both a higher high and a lower low is made.
- Trends are usually indicated by the consecutive creation of higher highs or lower lows.
- Using the HHLL indicator, one can easily wait for a certain number of consecutive higher highs or lower lows indicating the start of a new trade.
- Once a new trend has been identified, simply enter into the direction of the trend!
This indicator was developed exclusively by MooMooForex. Additional reading may be found inside the Research blog.