Bank Level Indicator, Precision Powerful Zones

Description

The shown bank levels in the Bank Level Indicator can serve as major support and resistance zones, pivot points, or even moving support and resistance lines. Every financial institution and market maker strategically trades and places orders in the foreign exchange market. These organisations place the largest lot sizes or volumes, which significantly affects how the price moves in the foreign exchange market.

Banks like Citigroup, Deutsche Bank, Bank of America, HSBC, and Barclays Bank are the biggest players in this financial sector. The others are positioned at what are known as the bank levels, which are important psychological levels. As a result, traders that enjoy dealing with these major players in the forex market constantly keep an eye out for these levels. The Bank Levels Indicator can be used to track these levels.

The Bank Level Indicator for the foundation

Key levels are depicted on the MT4 chart by the bank level indicator. These levels may be low, rounded values, all-time highs, or locations where the price frequently stalls.

When the market price hits these levels, traders keep a close eye on it to see whether a price reversal or continuance is likely.

The Bank Level Indicator’s appearance on the MT4 chart is depicted in the diagram below.

The several bank levels that this indicator displays are shown in the AUD/USD H1 chart above. Both the current and upcoming day levels are contained in these levels. The Bank Level Indicator displays the current day levels in green. As a result, the bank levels for the following day are depicted in lime.

The Bank Levels Indicator’s depicted bank levels can function as pivot points, important support and resistance zones, or even dynamic support and resistance lines. As a result, trend following and reverse trading strategies benefit from these levels. This indicator is very helpful when trading in the short term. This indicator will be useful to scalpers and intraday traders.

When the price is precisely at these levels, traders should keep an eye on it in order to trade using this indicator. This indicates that a reversal is about to occur when the price reaches these levels and stalls. As a confirming entry (buy or sell) signal, traders should keep an eye out for reversal patterns such a doji, hammer, spinning top pin bar, and so forth when the price stalls at these levels.

Therefore, traders should be on the lookout for a breakout trade when the price hits this level and a candle pierces it firmly. It seems that before placing orders, traders should wait for a confirmation candle and for the price to retest this level.

Although traders can use the Bank Levels Indicator for MT4 exclusively, they can also combine it with other technical indicators for optimal results. The Grid Round Number Indicator, Round Level Indicator, Fibonacci Retracement, and Pivot Point are additional indicators that can be included.

Conclusion

Key bank levels are depicted on the MT4 chart by the Bank Level Indicator for MT4. Short-term trading is a better fit for this indicator. Although the Bank Levels Indicator can be used alone, it performs best when combined with other technical indicators like the Pivot Point, Fibonacci Retracement, Round Level Indicator, and Grid Round Number Indicator.