Secret Profit Levels indicator for determining bank levels
In the previous article, I told you what bank levels are and how they can be used in trading. And today I am going to offer you an indicator that will build these levels, which will facilitate the work of a trader. It’s called Secret Profit Levels.
Installation and adjustment of the indicator
For the installation of the indicator in MT4 we use the standard scheme of actions. It can be found in the article “Cheat sheet on MT4 “. The parameters in the settings are small, and they relate to the color of the signals. As a result, they don’t have to be changed. After installation on the chart, you will see this picture:
How to use Secret Profit Levels in trading
Trading is carried out on an hourly chart. The indicator signals are very simple to read: green buying zone, red selling zone. However, in order to open a trade, certain conditions must be met. Consider them.
In an uptrend, mark round levels. For example, 1.14000 and 1.15000 (for 5 digits). Next, we wait for the price to pass 2/3 of this range in the direction of the trend, that is, approximately to the level of 1.14667. You can open a BUY order 150 pips higher. In my example, it’s 1.14817.
Stop-loss we place on 150 points below the opening price.
One of the two options can be used to commit a profit. Those who do not like to take risks can close the deal when the price reaches the nearest round level. The second option provides for the installation of take-profit at 150 points above the round level. And you can combine both of these options. To do this, you need to open two buy orders. The first trade is closed at the round level, and the second one is 150 points higher than this level.
For sales we do the same thing, but only with the appropriate corrections.
In a downward trend we are looking for round levels. For example: 1.14000 and 1.13000. The price should go 2/3 of this distance by trend. In this example, up to the level of 1.13333. We open a SELL order 150 pips lower – this is 1.13183 pips.
Stop-loss set at 150 points above the order opening price.
Fix profit when the price reaches the nearest round level, or 150 points below the round level. If desired, you can use both options. We’re opening two sales orders. The first one is closed at the round level, and the second one is 150 points below this level.
The Secret Profit Levels indicator has simple conditions for use. However, like any other technical analysis tool, it requires testing in demo trading. Positive test results allow you to make a decision to include the indicator in the trading strategy used in real trading.
Download Secret Profit Levels: