This is an awesome indicator which generates trade signal based on two indicators. The trading direction can be whether in the direction of the trend or the counter trend. This trading strategy can be applied in any time frame and in any currency pairs. However, the trending market is always preferable.
This system basically consists of two custom made indicators.
This is the red and yellow line moving average that moves below and above the price depending upon the market situations. This is the directional indicator that will help us in determining the direction of the market. This indicator acts as a main trading signal for our trading system. When the 2ColorMA is red, we will be looking to sell. When the 2ColorMA is yellow, we will be looking to buy.
- Levelator Indicator:
The Levelatorindicator will generate the levels on the main chart in which we can:
- Buy or sell.
- Place a stop loss.
- Place a take profit order.
By default, the Levelator will look to identify the lowest low and the highest high over the last 100 candles and then connect them.Once a high and a low have been identified, the Levelator will draw 6 equally spaced levels or zones between the high and the low. If the market has been moving upwards, the zones will be colored Orange. If the market has been moving downwards, the zones will be colored Blue. At each line that separates the sections, you will see a yellow number. This is the number of pips the current market price is away from these levels. These numbers will continually change as the price of the market changes.
It’s important to understand that in a buy trade or a sell trade, it doesn’t matter if the Levelator is orange or blue. Once price has moved through a zone to touch the next level, the color of that zone will disappear. You will see a lot of zones that have disappeared to leave the chart color to show through. A Blue Levelator will have disappearing zones as the price rises upwards from the very bottom to touch the next upper levels. An Orange Levelator will have disappearing zones as the price falls downwards from the very top to touch the next lower level.
Buy Condition Using Forex Strategy Master Levelator System.
- The 2colorMA should be yellow in color.
- Enter the long trade as soon as the price touches the immediate upper level of the levelator.
Forex Strategy Master Levelator stop loss and Take profit.
Stop loss should be placed just below the immediate lower level of the levelator and take profit should be placed just below the immediate upper level of the levelator like shown in the above chart.
Sell Condition Using Forex Strategy Master Levelator System.
- The 2colorMA should be red in color.
- Enter short trade as soon as the price touches the immediate lower level of levelator.
Forex Strategy Master Levelator Stop loss and Take profit.
Stop loss should be placed just above the immediate upper level and take profit should be placed just above the immediate lower level.
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