Financial institutions and market makers strategically execute trades and position their orders within the currency market. Banks place the largest volume or lot size, significantly influencing price movement in the currency market. The MT4 bank Level Indicator depicts crucial levels on the chart. These levels can be all-time highs or lows, rounded values, or locations where prices frequently stall.
When the market price reaches these levels, traders actively monitor to see if there will be a price reversal or continuation.
Features Of The Bank Levels Indicator For MT4
Here are some of the features of Bank levels indicator for MT4:
- Identifies important price levels: The indicator reveals important price levels where banks and other significant financial institutions are likely to place orders.
- Depicts support and resistance graphically: The indicator depicts major price levels on the chart as horizontal lines that you can utilize as potential support and resistance.
- Customization: You can tailor the indicator to your trading style. The user, for example, can select to display multiple types of levels, such as weekly, daily, and hourly levels.
- Alerting: When conditions are satisfied, such as when the price passes a key level, you can customize the indicator to create notifications.
Buy Sell Signals
Trade entry signals appear when the price reaches these levels. When the price reaches bank levels and stalls, it shows that a reversal is imminent. For the buy entry, the price should have been in a downtrend before reaching these levels. Enter a long trade once a reversal pattern appears. Place your stop loss slightly below the previous swing low.
For the sell entry, the price should have been in an up trend before reaching these levels. Enter a short trade once a reversal pattern appears. Place your stop loss slightly above the previous swing high.
The Bank Level indicator for MT4 identifies levels that banks have taken positions. Banks are key market participants. Hence, these levels have a significant influence on the markets.