BANK LEVEL INDICATOR MT4
- The Bank Level Indicator for MT4 draws key bank levels on the MT4 chart.
In the forex market, all financial institutions and market makers trade and place their orders strategically. These entities place the highest volume or lot size, thus greatly influencing the movement of the price in the forex market. The largest forces among these financial institutions are banks such as Citigroup, Deutsche Bank, Bank of America, HSBC, and Barclays Bank. Their others are placed at key psychological levels, also called the bank levels. Thus, these levels are always watched out for by traders who love to trade with these big players in the forex market. These levels can be monitored by using the Bank Levels Indicator.
The foundation Bank Level Indicator
The bank Level Indicator for MT4 draws key levels on the MT4 chart. These levels can be all-time highs or low, rounded numbers or places where the price stalls on many occasions.
Traders closely watch out when the market price reaches these levels to see if there will be a price reversal or continuation.
- The diagram below shows how the Bank Level Indicator is displayed on the MT4 chart.
- The AUD/USD H1 chart above shows the various bank levels displayed by this indicator. These levels contain the current day levels and the next day levels. The current day levels are drawn in green color by the Bank Level Indicator. Consequently, the next-day bank levels are drawn in the lime color.
The bank levels drawn by the Bank Levels Indicator can serve as key support and resistance zones, pivot point, and even dynamic support and resistance lines. Thus, these levels are good for trend following and reversal trading strategy. This indicator is particularly useful for short-term trading. Intraday traders and scalpers will find this indicator valuable while trading.
To trade using this indicator, traders should watch when the price is exactly at these levels. When the price gets to these levels and stalls, this is a signal that a reversal is imminent. When the price stalls at these levels, traders should watch out for reversal patterns such as doji, hammer, spinning top pin bar, and so on, as a confirmatory entry (buy or sell) signal.
Consequently, when the price reaches this level and a candle pierce this level strongly, traders should watch out for a breakout trade. Apparently, traders should wait for the price to retest this level, and wait for a confirmation candle before placing orders.
The Bank Levels Indicator for MT4 can be used solely; however, traders can also incorporate other technical indicators with it to give the best result. Other indicators that can be incorporated are the Grid Round Number Indicator, Round Level Indicator, Fibonacci Retracement, and Pivot Point.
Conclusion
- The Bank Level Indicator for MT4 draws key bank levels on the MT4 chart. This indicator is more suited for short-term trading. The Bank Levels Indicator can be used solely, but will give the best result when used with other technical indicators such as the Grid Round Number Indicator, Round Level Indicator, Fibonacci Retracement, and Pivot Point.
