Levels Indicator for Meta Trader 4
Table Of Contents:
- Levels Indicator for Meta Trader 4
- Some Advantages and Disadvantages of using the Levels Indicator for Meta Trader 4
The Levels Indicator for Meta Trader 4 is an indicator that is built on the Meta Trader 4 charting platform which helps the trader to understand exactly how the market works by highlighting the fact that the markets move in levels, helping traders to spot these levels and creating a visual object to help traders see the most important levels across all the chart time frames. This is a very important but highly understated and often misunderstood fact in the trading industry although it is almost common knowledge among the professionals. There are several benefits that a trader can derive from using the Levels Indicator for Meta Trader 4 and some of these benefits have been outlined below.
Some Advantages and Disadvantages of using the Levels Indicator for Meta Trader 4
One of the first major advantages of using the Levels Indicator for Meta Trader 4 is that since it is based on price action, it can help traders to find out the areas in price where the most important reversals are likely to occur, much like the value area for the price. This means that a trader who is using this indicator will find it much easier to spot the most significant and most likely spots where price action is likely to reverse at several times during any trading day.
Traders can then take advantage of these levels and plan ahead for when the price gets close enough to interact with these levels in the future. Apart from helping a trader spot these important levels, the indicator can help traders to also plan ahead which is very important when it comes to trading.
A lot of traders do not fully appreciate the full importance of pre-planning trades before they happen in the markets. In fact, a lot of traders know but still choose to ignore it. The truth still remains that the earlier a trader learns to preplan trades in the market, the better prepared that trader will actually be when it is time to take the trade.
Hence every trader must make it a priority to make sure that they always preplan their trades and this can easily be done using the Levels Indicator for Meta Trader 4. The pre-planning of these trades will then be done around these most important levels in the market. By the time the Trader learns how to pre-plan his or her trades, over time, this naturally becomes a part of the Trader.
After the Trader has used the Levels Indicator for Meta Trader 4 for a while, it helps the trader to learn about what price action really is in trading and how it really works. This means that the trader would be able to get insights into the underlying factors that move price, the fact that price constructs itself by creating levels and then breaking them and how price really works around levels. Hence, the Trader can then move on to apply the knowledge they have acquired to their trading to achieve better results.
For example, a trader who uses the indicator will typically have one to two major levels drawn on his trading chart every day regardless of what currency pair or trading asset the trader trades and also regardless of the time frame that the trader chooses to work with. The Trader would then observe to see exactly what price would do as it approaches these levels during the trading day.
There's usually not so many things price could or should do around these levels but the major issue is the randomness to which it does those things that it could do around these levels. Some of the possible things that price could do around these levels are that price could decide to approach a level and reverse almost immediately, the price could also reach a level, pretend to break it to the other side and still return to its previous direction. I think it's best to keep both of the mentioned cases as times when price tests a particular area that constitutes a level and then reverses back to its original direction.
The other scenario would be when the price decides to break a level to the other side and continue moving in the new breakout direction. Hence, price may break a level area and then reverse very temporarily just to retest the level from the other side before it then continues in the new breakout direction or the price could just break out in a new direction and not even stop for a second to retest the level or anything and keep on moving until it reaches its planned destination.
These 2 scenarios and 4 likely behaviors are what price repeats in random orders all trading day long. Hence, once a trader uses the Levels Indicator for Meta Trader 4 for a while, he or she would immediately get very accustomed to seeing these things and then be able to take full advantage of them as soon as they happen.
This helps the trader to understand the markets and to begin to think like a professional trader since not every area on the charts are marked out and hence, the Trader would need to be patient for the price to reach these levels and react around them before he or she does anything like placing orders in the market. This will also teach the Trader how to stay disciplined and committed to a particular task.
The Levels Indicator for Meta Trader 4 is very reliable across timeframes and the Trader would observe once he or she starts using it that whatever levels it comes up with remain the same on the charts regardless of the time frame that the trader switches to and so it would largely do the Trader a lot of good to look for which time frame they are then most comfortable with working with then place these trades on that exact time frame. Overall, using the indicator can really make a trader a lot better than he or she used to be before he or she started to use it.