The Key Level Forex indicator for mt4 (Metatrader 4) analyses the chart and provides two key levels for both long and short trade price breakouts.
The indicator appears on the main MT4 chart as two horizontal lines, the upper red line for long breakout and the lower red line for short breakout.
Buy & Sell Trade Example
- Open a buy trade as soon as the price closes above the upper red key level line.
- Open a sell trade as soon as the price closes below the lower red key level line.
This indicator can be used as a standalone trading tool for both buy and sell trades.
Free Download
Download the “Key_level_indicator.ex4” indicator for MT4
Indicator Chart (EUR/USD H1)
The picture below shows the Key Level mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the Key Level Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Key levels
Does the indicator repaint? No.
Key Level + BOS & CHOCH MT4 Day Trading Strategy
This day trading strategy integrates the Key Level Forex Indicator with the BOS & CHOCH MetaTrader 4 Indicator to provide a comprehensive approach to market analysis.
The Key Level Forex Indicator highlights significant price levels, while the BOS & CHOCH Indicator identifies market structure shifts, offering traders a clear framework for making informed trading decisions.
This strategy is suitable for intraday trading on M15 to H1 timeframes, focusing on major currency pairs like EUR/USD, GBP/USD, and USD/JPY.
Buy Entry Rules
- Identify a breakout above the red key level line using the Key Level Forex Indicator, indicating a bullish market sentiment.
- Confirm the breakout with the BOS & CHOCH Indicator displaying a blue CHOCH line, signaling a change of character to bullish.
- Enter a buy trade at the current market price or on a minor retracement.
- Set the stop loss below the most recent swing low or a recent key level to manage risk effectively.
- Place the take profit at the next significant resistance level or use a fixed pip target, such as 20–50 pips, depending on market volatility.
Sell Entry Rules
- Identify a breakout below the red key level line using the Key Level Forex Indicator, indicating a bearish market sentiment.
- Confirm the breakout with the BOS & CHOCH Indicator displaying a red BOS line, signaling a break of structure to the downside.
- Enter a sell trade at the current market price or on a minor retracement.
- Set the stop loss above the most recent swing high or a recent key level to manage risk effectively.
- Place the take profit at the next significant support level or use a fixed pip target, such as 20–50 pips, depending on market volatility.
Advantages
- Combines key price levels with market structure analysis for more reliable trade entries.
- Clear visual signals from both indicators enhance decision-making.
- Suitable for various market conditions, including trending and ranging markets.
- Applicable to multiple currency pairs, providing flexibility for traders.
Drawbacks
- Requires active monitoring of the charts to identify key levels and indicator signals.
- False breakouts can occur, leading to potential losses if not managed properly.
- It may not be suitable for scalping strategies due to the need for confirmation signals.
Example Case Studies
Case Study 1 – EUR/USD M15
On the EUR/USD M15 chart, the Key Level Forex Indicator highlighted a significant red key level at 1.1050.
The price broke above this level, and the BOS & CHOCH Indicator displayed a blue CHOCH line, confirming a bullish market structure shift.
A buy trade was entered at 1.1055, with a stop loss at 1.1040 and a take profit at 1.1085.
The price moved in the anticipated direction, hitting the take profit target within the session.
Case Study 2 – GBP/USD H1
On the GBP/USD H1 chart, the Key Level Forex Indicator identified a red key level at 1.3000.
The price broke below this level, and the BOS & CHOCH Indicator displayed a red BOS line, indicating a bearish market structure shift.
A sell trade was entered at 1.2995, with a stop loss at 1.3010 and a take profit at 1.2965.
The market declined as expected, reaching the take profit target during the trading day.
Strategy Tips
- Always wait for confirmation from both indicators before entering a trade to increase the probability of success.
- Monitor economic news releases that may impact key levels and market structure.
- Use additional tools, such as trendlines or moving averages, to further validate trade entries.
- Regularly review and adjust stop loss and take profit levels based on market conditions and volatility.
Download Now
Download the “Key_level_indicator.ex4” indicator for Metatrader 4
