The Daily Lines Boxes Indicator, also known as the Pivot Points Indicator, was invented by a man named Tom Demark . It was officially introduced to the market in the early 1990s.
What is the Daily Lines Boxes Indicator?
The Daily Lines Boxes indicator is a technical analysis tool that is commonly used in the foreign exchange market (Forex) by day traders. The indicator is based on the concept of pivot points, which are levels at which the market direction is expected to change. Day traders can use these pivot points to identify key levels for support and resistance, which can provide valuable information for making decisions on entry and exit points for trades.
One of the key benefits of using the Daily Lines indicator is that it can help traders identify potential turning points in the market. For example, if the market price breaks above a resistance level, it can be an indication that the market is trending upwards and that it is a good time to buy the currency pair. Conversely, if the market price falls below a support level, it can be an indication that the market is trending downwards and that it is a good time to sell the currency pair. This type of information can be particularly useful for day traders who are looking to make quick trades based on short-term market movements.
key points about the Daily Lines Boxes Indicator
- It is based on the concept of pivot points, which are levels at which the market direction is expected to change.
- It is useful for identifying potential entry and exit points for trades.
- It can be used in conjunction with other indicators or analysis techniques to improve the accuracy of trade signals.
Daily Lines Boxes Strategy
Buy Signal
- The Daily Lines Boxes Indicator sends a buy signal when the market price breaks above a resistance level. This is an indication that the market is trending upwards and that it is a good time to buy the currency pair.
Sell Signal
- The Daily Lines Boxes Indicator generates a sell signal when the market price drops below a designated support level, indicating that the market trend is moving downwards, making it a suitable time to sell the currency pair.
How the Daily Lines Boxes Indicator Works?
The Daily Lines Boxes Indicator uses data from the broker’s server time to identify key levels of support and resistance in the Forex market. The indicator uses an internal script to determine the start of each trading day at 00:00 and plots a vertical line on the chart at these time markers. This allows traders to easily identify significant price levels that have been reached during previous trading days. Additionally, the indicator uses the date on the server to identify the day, making it easy for traders to quickly reference historical price levels, the Daily Lines Indicator is a useful tool for traders who want to gain a better understanding of the market’s short-term price movements and identify potential areas of support and resistance.
Daily Lines Boxes Indicator Pros & Cons
Pros
- It is a simple and easy-to-use indicator that can be quickly understood by traders of all skill levels.
- It can be used to identify potential entry and exit points for trades, helping to improve the accuracy of trade signals.
- It can be used to identify potential areas of price consolidation, which can indicate upcoming trend reversals
Cons
- It does not take into account any underlying market fundamentals, like economic indicators.
- It is based on past price action and may not always be accurate in predicting future market movements.
- It can lead to false signals if the market is not trending, leading to potential losses.
Conclusion
The Daily Lines Boxes Indicator, also known as the Pivot Points Indicator is based on pivot points which are levels where the market’s direction is likely to change. Day traders use these pivot points to identify key levels of support and resistance, which can assist in making decisions about entry and exit points for trades. The Daily Lines indicator can assist in identifying potential turning points in the market and can be combined with other indicators or analysis techniques to enhance the accuracy of trade signals. The indicator uses an internal script to determine the start of each trading day.
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