Introducing the level indicator
Support and resistance levels are important elements of price charts that traders should be aware of. This is because the market is often interested in these levels and the market reaction is often strong. The Levels Indicator was developed to help traders identify potential support and resistance levels.
What is a level indicator?
A level indicator is a technical trading tool that helps traders identify horizontal support and resistance levels where price may reverse or breakout.
This indicator plots 10 horizontal lines. 5 of them are support levels and 5 are resistance levels. The support level is magenta and the resistance level is dodger blue. It also plots a label on each horizontal line that appears on the far right of the price chart to indicate whether the line is support or resistance.
How does the level indicator work?
The Levels indicator has a complex algorithm that calculates support and resistance levels using formulas that incorporate price ranges, closing prices, and Fibonacci ratios.
The indicator first calculates the “range”, which is the difference between the high and low prices. Then categorize the price tiers as ‘Regular’, ‘Decreased’ or ‘Enhanced’. The indicator then assigns multipliers based on Fibonacci levels, depending on the price range classification. The “normal” range multipliers are 0.236 and 0.382. The multipliers for the “Markdown” price range are 0.146 and 0.236. The extended price range multipliers are 0.382 and 0.618. The indicator then connects the multipliers with various support and resistance level formulas. Each support and resistance level has its own formula that is derived from the price range.
How to use the MT5 level indicator
The level indicator has several options to change the display of support and resistance levels.
“Chart period” changes the timeframe on which the price range is based. This is preset as a range of 1 day. This means that the calculation is based on the day’s highs and lows.
“Maximum Range” and “Minimum Range” refer to the maximum and minimum range of points over which the indicator calculates support and resistance levels.
“Color…” allows the user to select the color used to plot each support and resistance line.
‘Line style…’ allows you to select the line style used to plot the support and resistance lines.
“Width…” allows the user to change the thickness of the line plotted by the indicator.
“TextSize” allows you to change the text size of the label placed on the right edge of the chart.
level indicator application
This indicator does not provide trend or momentum based trading signals. Instead it plots horizontal support and resistance levels based on a fixed formula, making it very similar to the Pivot Point indicator. However, the formula used to calculate traditional pivot points is different from the formula used to calculate level support and resistance values. Traders can watch price action when these levels are reached and wait for signals of a reversal or momentum breakout.
Conclusion
The support and resistance levels that this indicator identifies often coincide with areas of highs and lows in past swings. As such, traders can effectively incorporate this indicator into other strategies that use horizontal support and resistance levels. However, we recommend using this metric in conjunction with other technical metrics for greater accuracy.
MT5 Indicator – Download Instructions
The Levels Indicator For MT5 is a Metatrader 5 (MT5) Indicator and the essence of this technical indicator is to transform the accumulated historical data.
Levels Indicator For MT5 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can anticipate further price movements and adjust their strategies accordingly. Click here for MT5 strategies
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How to install Levels Indicator For MT5.mq5 on MetaTrader 5 Charts?
- Download level indicator for MT5.mq5
- Copy Levels Indicator For MT5.mq5 to Metatrader 5 Directory /experts/indicators/
- Start or restart your Metatrader 5 client
- Select the chart and timeframe on which to test the mt5 indicator
- Search for “Custom Indicators” in the navigator, which remains mostly in the Metatrader 5 client
- Right click on level indicator for MT5.mq5
- Attach to chart
- change the settings or[OK]press
- Indicator Levels indicator for MT5.mq4 is available on the chart
How to remove Levels indicator for MT5.mq5 from Metatrader 5 charts?
- Select the chart with the indicator running in the Metatrader 5 client
- right click on the chart
- “Index list”
- Select indicator and delete
Level Indicator For MT5 (Free Download)
Click below to download.
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