Introduction to the Prior Day Open Close Line Indiator

The closing price of the day is one of the most important price points experienced traders monitor. It allows traders to see how the market performed during the day, and what it might indicate for the next day. This price point is used as a support level or resistance level for price movements.

What's the Prior Day Close Line Indicator (or )?

The Prior Day Open Close Line indicator is an indicator that identifies the closing price of the previous day as a potential horizontal support or resistance line from which the price could break out from, or reverse. This indicator plots the closing of the previous day's price as a dot/dot-dashed line.

How does the Prior Day Close Line Indicator Work?

The Prior Day Open Close Line Indicator pulls the close price for the previous day from the broker price feed. The indicator plots a horizontal line dot-dot dashed from the beginning of the current day. This would indicate the horizontal support line or resistance line, based on the close of the previous day.

How do you use the Prior Day Close Line Indicator to MT4?

There are a few variables that traders can use to alter the timing of the Prior Day Open Close Line Indicator. The most important of the two is "TimeZoneOfData".

The field "TimeZoneOfData", refers to which time zone the server uses. This field changes the hour that the indicator uses to determine the close of the day price, based on the server’s time zone.

This support or resistance line can be traded in many ways. This support line could be used to stop price from falling intraday. This could be a breakout level, where price can rally or fall with strong momentum after breaking it.

Below is an example of a breakout at the close price levels. Trades are opened after a pullback, which could occur after the initial breakout.

Trade Setup

How to Enter?

Wait for the price to break above yesterday's closing price line, then pull back towards the line. As soon as a bullish pattern of reversal develops along this line, open a buy order. Place the stop loss below this pattern.

When do you want to exit?

If price action indicates a bearish reversal, close the trade immediately.

Setup for Trades

How to Enter?

Wait for the price to fall below the previous day’s closing price line, then pull back towards the line. As soon as a bearish pattern of reversal develops along the line, place a sell order. Place the stop loss at the top of the pattern.

When do you want to exit?

If price action indicates a possible bullish trend reversal, close the trade immediately.

Conclusion

This indicator offers traders unique opportunities to trade breakouts and reversals. It is rare for traders to use the closing of the previous day's trading session as a horizontal support level or resistance level. However, historical price action shows that there are instances when this line might be an effective support level or resistance level.

Indicators - Download Instructions

Prior Day Open Close Line For MT4 Is a Metatrader4 (MT4) indicator. The essence of this indicator is to transform the accumulated historical data.

The Prior Day Open Close Line 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 you install Prior Day Open Close Line Indicator on MT4.mq4

• Download the Prior Day Open Close Line indicator for MT4.mq4
• Copy the Prior Day Open Close Line indicator for MT4.mq4 and add it to your 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 on Prior Day Close Line Indicator to access MT4.mq4
• Attach a chart
• Change settings or click ok
• Your Chart contains the Indicator Prior Day Close Line Indicator For MT4.mq4.

How do I remove the Prior Day Open Close Line indicator 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

Prior Day Close Line Indicator for the MT4 (Free download)

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