What is High Minus Low Indicator (Trading Strategy)

High Minus low indicator is the difference between high price and low price of the period. this indicates a sudden spike of the price,when the indicator line is rising upward this means, a difference of the high and low is higher than a period candle.

High Minus Low

Increasing the volatility of the share will detect this indicator because when volatility increasing then the difference between the high & low price of the share price will increase. then the indicator line will rise up.

Calculaton

Formula: (High price – Low Price ) of the period.

High Minus low indicator Calculation
see above the chart, last candle high price is 485.75 & Low price is 484.50. so the calculation will be =485.75-484.50. so the result is 1.25. you can see above the chart where 1.25 value in the indicator line.

How High Minus low indicator works,

When this indicator is started rising this means high and low price distance is increasing. the share price is can be rising or falling in both the situation & indicator value will rise. so, the line will rise up with value. this indicator will not tell you the direction of the price movement.

HML value will fall when the difference between the high and low is less than the previous candle. then the indicator value will be decrease than the period candle. and the line will fall.

What High Minus Low Indicator Tells You,

  • This will tells you a sudden breakout or breakdown of the share price. if suddenly share price increasing then the HML line will rise up. and if suddenly share price is falling then HML Line will rise up.
  • If the HML line is rising continues this means, the share price is rising or is too much. because after rising this indicator line if the current candle share price high lows difference is higher than previous on then HML indicator Line will rise again. so when the HML indicator line is rising continuously this means, a massive rise or fall in the share price.

Conclusion

HML Indicator shows the sudden high low price changes in the share price. the calculation is a period high minus low price.

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