Introduction to Heat Map Indicator

For identifying breakout price levels and price ranges, traders often use historical price movements and their volume. These indicators are commonly called Heat Maps because they show traders which price range saw the highest trading volume.

What's the Heat Map Indicator?

The Heat Map Indicator, a customized technical indicator that identifies price areas or price ranges in which price activity is most likely to be active, is called a Heat Map Indicator. The indicator plots a red line around the area where it projects that price will be most active. The indicator also plots the red bars in gradients. The higher the activity in the area, the darker the red. The activity of price in the area will be lower if it is a lighter color. Heat Map Indicator is a name for the darker color red, which indicates that the price area is hotter.

How does the Heat Map Indicator Work?

The program script of this indicator uses a simple algorithm. It starts by identifying the last median price action. The indicator then uses the median as its starting point or middlepoint in the heat map. The indicator then creates a preset price range, which it measures starting at the midpoint. The heat map is then plotted based on the distance between the current midpoint of the price and the preset price range. It also determines the volume of transactions over a predetermined number of periods. The volume data is used to determine the red color gradient for each price zone.

How to Use the Heat Map Indicator in MT4

A few settings can be used by traders to alter the range of the Heat Map Indicator.

"HMPeriod", refers to how many bars the Heat Map indicator uses in order to identify price activity in a particular price zone.

Scale refers to the multiplier that is used to measure distance between the high and low points of the range.

"NbZone", refers to the range that would be used to measure the price zone's range from its midpoint.

The Heat Map color gradients can be used to help traders make an informed prediction about where prices are likely to move. Some traders believe that high volume and price action areas are more difficult to exit than areas with lower trade activity. Some traders trade breakouts in the direction that is lighter colored.

Others might think the exact opposite. They would trade reversals within the area if they knew that the darker gradient had the most transactions.

Conclusion

The Heat Map Indicator does not provide an objective indicator of where price might break out or reverse. The Heat Map Indicator only shows color gradients that are based on past transactions. Traders can still use this information to determine their trade direction. This indicator can be used with other technical analysis-based trade setups.

Indicators - Download Instructions

Heat Map Indicator for MT4 (Metatrader 4 or MT4) is a Metatrader 4-indicator. Its purpose is to transform the accumulated historical data.

The Heat Map Indicator for MT4 allows you to spot patterns and peculiarities in price dynamics that are not visible to the naked eye.

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How do I install the Heat Map Indicator in MT4.mq4

• Heat Map Indicator to MT4.mq4 Download
• Copy Heat Map Indicator MT4.mq4 for Metatrader Directory Experts / Indicators
• Metatrader 4 Client can be restarted or started
• Choose Chart and Timeframe to test your MT4 indicator
• You can search "Custom Indicators" using your Navigator, mostly left in your Metatrader4 Client
• Right click Heat Map Indicator to access MT4.mq4
• Attach a chart
• Change settings or click ok
• Your Chart has the Indicator Heatmap Indicator for Mt4.mq4.

How do I remove the Heat Map Indicator from Metatrader Chart for MT4.mq4?

• Select the Chart in which the Indicator is running in your Metatrader4 Client
• Right-click to open the Chart
• "Indicators list"
• Select the indicator and click delete

Heatmap Indicator for Microsoft MT4 (Free download)

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