The Key Levels Indicator is a technical analysis tool for the MetaTrader 5 (MT5) designed to highlight round number zones on the chart. These round number zones are otherwise known as psychological levels where the market price tends to reverse.
Essentially, the indicator displays price psychological levels with 00, 20, 50, and 80, which are strong price reversal or continuation zones. Therefore, traders may anticipate buying opportunities near key support zones or selling opportunities at key resistance zones.
Conversely, traders may anticipate potential trend continuation if the price breaks above or below the key levels.
Features of the Key Levels Indicator for MT5
- Automatically Detects Round Levels: The indicator highlights round level numbers with 00, 20, 50, and 80, enabling traders to identify price psychological zones without hassle.
- Multi-Timeframe: The indicator analyzes multiple timeframes simultaneously, which makes it a suitable trading tool for multi-time frame technical analysis.
- Customizable Parameters: The indicator allows users to customize the inbuilt parameters to suit their preferences. Traders can turn on/off the levels or change the colors.
Benefits of Using the Indicator
- Identify Support and Resistance: The indicator highlights significant levels of the price, which assist traders in identifying potential support and resistance zones for buying/selling opportunities or trade exits.
- Risk Management: The identified key levels can be used to set stop-loss and take profits.
- Confluence: The key levels identified by the indicator can be used as confluence with price action or other technical trading tools to confirm the potential direction of the price.
Indicator Settings Description
The indicator comes with the following customizable parameters:
Show_00_50_levels: Enables/Disables 00 and 50 levels.
Show_20_80_Levels: Enables/Disables 20 and 80 levels.
Level_00_Color: Determines color for level 00.
Level_50_Color: Determines color for level 50.
Level_20_Color: Determines color for level 20.
Level_80_Color: Determines color for level 80.