The key level indicator helps traders detect different critical levels in forex trading on the mt4 charts. These vital levels are where the instrument’s price makes decisive moves, and it is often a start, end or continuation of a trend. These levels can also be reversal or breakout levels. Most of the time, these zones are strong support and resistance levels where the traders mostly trade.
Working of Key levels indicator on mt4:
The working of this indicator is not only limited to one timeframe. But it works in synchronization at all timeframes. For example, if the indicator has spotted a support zone at, let’s say, 4 hours time frame. Then this support zone will also be valid at the timeframes below 4 hours. This is a unique feature of the indicator. That’s why traders of all levels use this indicator while performing technical analysis. Most traders use key levels indicators during scalping, swing trading and day trading.
By knowing the key levels, you can accurately predict the price in the near future, which increases the probability of you making good profits.
Settings of key levels indicator:
In the mt4 key level indicator settings, you can play with the following parameters.
Bam: Bam Value on the indicator.
Length: Initially drawn key level’s length.
Color1: Key level Color.
Color2: Color to display key level.
Trading Strategy for Key Levels Indicator:
There are two ways of trading using this indicator.
In the first method, you can use this indicator as a confluence in your trading strategy, which you already have.
In the second method, you can use this indicator alone. The indicator will plot the key levels on the charts, and once you see any key level, you have to pay close attention to how the price responds in that zone. For example, if the price is getting rejected from a support zone, then it is a good setup to place a buy trade, and if the price is getting rejected from a resistance zone, then you should take a short position and place a sell order. The opposite levels can also act as good price targets.
Conclusion:
The key levels indicator is made to help you give clear insights into the forex market. Knowing the key levels, you can take more comprehensive trades and save yourself from losses. Also, it simplifies your technical analysis to a great extent. That’s why I would always recommend you to use this indicator in combination with Scalping Indicator.