Round Levels Indicator is a technical tool designed to identify and display crucial round levels on your MetaTrader 4 (MT4) trading platform. It does so by automatically detecting price levels that end with multiple zeros and marking them on your price chart. The indicator displays round levels in MT4. On the chart, it shows the key psychological levels divided into groups: whole-number, half-number, and quarter-number levels. The indicator is automatically zoomed according to the chosen currency pair or timeframe.
Why Is It Important?
Round Levels Indicator is important because it helps traders identify psychological price levels on the chart. These levels can be used to enter or exit a trading position. Round levels are natural support and resistance levels since many traders don’t hesitate to place their orders there. That is why you can use them as a benchmark for setting your trade target, as well as an additional signal for spotting entry points and placing Stop orders.
How Does It Work?
Round Levels Indicator works by automatically detecting price levels that end with multiple zeros and marking them on your price chart. The indicator displays round levels in MT4. On the chart, it shows the key psychological levels divided into groups: whole-number, half-number, and quarter-number levels. The indicator is automatically zoomed according to the chosen currency pair or timeframe.
What Are The Benefits Of Using Round Levels?
Round levels are natural support and resistance levels since many traders don’t hesitate to place their orders there. That is why you can use them as a benchmark for setting your trade target, as well as an additional signal for spotting entry points and placing Stop orders.
What Are The Drawbacks Of Using Round Levels?
Round levels are not always reliable. Sometimes, the price may break through a round level, and the trader may suffer losses. Therefore, it is important to use other technical analysis tools in conjunction with the Round Levels Indicator.
What Are The Best Practices For Using Round Levels?
Here are some best practices for using round levels:
- Use round levels in conjunction with other technical analysis tools.
- Use round levels as a benchmark for setting your trade target.
- Use round levels as an additional signal for spotting entry points and placing Stop orders.
What Are The Common Mistakes To Avoid When Using Round Levels?
Here are some common mistakes to avoid when using round levels:
- Relying solely on round levels for trading decisions.
- Not using other technical analysis tools in conjunction with the Round Levels Indicator.
- Not considering other factors that may affect the price of an asset.
How to Trade with Round Levels Indicator
Buy Entry
- Wait for the price to break above a round level acting as resistance.
- Enter a long position when the price retraces back to the round level acting as support.
- Place your Stop Loss below the round level acting as support.
- Set your Take Profit at the nearest round level acting as resistance.
Sell Entry
- Wait for the price to break below a round level acting as support.
- Enter a short position when the price retraces back to the round level acting as resistance.
- Place your Stop Loss above the round level acting as resistance.
- Set your Take Profit at the nearest round level acting as support.
Round Levels Indicator Settings
Conclusion
The Round Levels Indicator for MetaTrader 4 is a useful tool for traders who want to identify key psychological levels on the price scale of the chart. The indicator displays the so-called psychological (round) levels on the price scale of the chart, which can be used as natural support and resistance levels.
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