As practice shows, trading by level is one of the most effective variants of profitable trading. But for this purpose it is very important to be able to build such levels correctly. It’s hard for novice traders to do that. Therefore, it is possible to use indicators that will successfully cope with this task. One of them is the TLB indicator that I’m going to tell you about today.
Inset and Parameters of the Indicator
After setting the indicator on the chart, it will draw significant levels of red and blue. The first are support levels, the second are resistance levels. In addition, you will see that some lines are solid and others are dotted. Thus, the indicator indicates the degree of importance of the level. Dotted line is weaker, solid line is stronger.And now about parameters.
The first of them is LB. It allows you to set how many levels should be displayed for each timeframe.
Second parameter in the settings, the most important one is maxBarsForPeriod. Using it, you can specify how many candlesticks in the history the indicator should use to determine the levels.
Other parameters refer to time intervals. We need to activate those that are of interest to the trader.
Application of the indicator in trade
TLB indicator can be used for two tasks: finding entry points and setting stop orders.
Trade can be opened at an important level. But this should be done with the following recommendations in mind:
- the level is considered to be broken if the candlestick is closed above/below the line;
- the breakdown direction coincides with the main trend on the price chart;
- test of level construction confirmed that the indicator did it correctly;
- additional filter indicator confirms the signal to open an order.
Many traders use TLB indicator to set take profit and stop loss. That is, the signals for opening orders are determined with the help of other analysis tools included in the trading strategy. But orders are closed using TLB. levels
The indicator considered in this article has only one drawback – the redrawing of levels. I therefore recommend that it be used only as a support tool. And it is desirable to check the correctness of the built levels. Signals of this indicator can be used in real trading only after successful testing on a demo account.
If you are interested in the TLB indicator, you can download it by clicking:indikator_TLBFyodorov’s Inga28.11.2018