Level indicators for MT4 |
Level trading is one of the most popular trading tactics among novice traders. Its essence is to determine the dynamic levels that are the boundaries of the channel, within which the price is the longest. Statistics say that the price is within the range about 80% of the time, but the problem is how to build this very dynamic channel most accurately. For example, if you superimpose Bollinger Bands, Keltner Channels, and a couple of other channel indicators on a chart, the results can be radically opposite.
In this review, we will look at several interesting level indicators for MT4 that differ from standard channel instruments. They build non-standard levels that can serve as a guideline for a potential reversal. They can hardly be called ideal, since sometimes they give clearly unprofitable signals, but a professional trader must own any instruments. Moreover, sometimes these indicators can bring 50-70 points of profit on one trade.
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Three level indicators for MT4
- Rabbit and Rabbit TT… This indicator has many different versions for both MT4 and MT5. The tool is known in the circles of CIS traders, as it was developed by a native of the post-Soviet space. The exact formula of the author’s indicator is not disclosed (Rabbit is closed source). We only know that it draws levels using an algorithmic method based on the ratio of Fibonacci levels and daily highs / lows.
- SubLevels – installation of additional intermediate levels. Since the formula for calculating them is unclear, there is no sense in setting them – they only overload the schedule. However, this can be an additional tool for building trading systems.
- Yesterday – change the time of the points of building levels. “0” – levels are built according to the extrema of the current day, “1” of the previous one, etc. You can even put a negative value and Rabbit will build predictive levels. True, on what basis he calculates them is unknown.
- Levels – the number of levels on the chart.
Unfortunately, there is also no information about exactly what changes were made to the formula. This information could help you choose the optimal version or modify the indicator for your own strategy. Nevertheless, the indicator is interesting.
There are two options for trading strategies for Rabbit. One provides for the placement of pending stop orders at the nearest levels. The second is trading by level breakouts or opening a deal on correction. In general, the classics of level trading.
- Trend Arrows… Probably the best of the three level indicators for MT4. It is unique in that it does not build familiar channels. It is rather a trending tool that also combines the functions of an “arrow”. Ideal for novice traders – signals are relatively rare (no need to rush), extremely clear and relatively accurate. No redrawing – if an arrow of a certain color is already formed after the candlestick closes, it will not change.
The Trend Arrows algorithm is similar to the algorithm of the previous indicator – it also analyzes the extremes of previous periods. But it has almost no settings – only the period and the moving average averaging (smoothing filter).
Deals are opened when the arrows change colors. It is logical that the presence of stops is mandatory, and to catch the long-term trend shown by the red arrows in the screenshot above would mean running into a stop. The essence of the strategy is classic: after changing the color of the arrows, a trade is opened with a target level of 20-30 points and a stop of 15-20 points. Timeframe – М30-Н1. Ideally, you should monitor open trades at least once every candlestick. This will allow, in case of an error, to close the deal at the breakeven level, without waiting for the stop to work. Upon reaching a profit of 20 points, part of the transaction is fixed, the second part is insured by trailing.
- London Breakout… “London explosion”. A series of trading systems, the essence of which is based on one fact: the Asian session for the GBP / USD pair is calm (they are sleeping in Europe), the European one is active. In the Asian session, resistance and support levels are drawn, at the start of the European session, the levels are broken, in the direction of which the deal is opened.
One of the free indicator options for this strategy is 3 Tier London Breakout.
This indicator of levels for MT4, at first glance, is overloaded with unnecessary data and chaotic. But it’s easy to figure it out. It draws a “box” (blue rectangle), the breakdown of the range boundaries of which is a signal to open a deal. The next levels are target levels for setting take profit (Buy / Sell Target) and stops. If you get used to it, the indicator can be very useful.
And in conclusion, a few tips:
- There are no perfect indicators. Settings, timeframes, pairs are selected individually.
- It is better to avoid timeframes below the M30.
- All strategies are tested first visually, then on the tester.
- It is worth adding confirming indicators and working with patterns.