#217 Forex MA Levelator Trading System and Indicator

High accuracy Forex MA Levelator Trading System and Indicator – You can trade this method on any timeframe and on any currency pair. This also works on non-Forex charts, so if you trade Oil or Gold, you are still good.

• Time Frame: M5 or higher
• Currency Pairs: Any

 

• 2ColorMA
• Levelator
• Relative Strength Index

 

2ColorMA:

This is the red and yellow line that runs through the price. This is the directional indicator that will tell us in what direction the market is likely to go.

• 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 Levelator will give us levels in which we can:

1. Buy or sell.
2. Place a stop loss.
3. 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 has 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.

 

BUY (Long) Example 1:

1. The 2ColorMA must be yellow.
2. The price on the chart must touch a few pips above the closest level.
3. The Take Profit will be just below the next level above the current price.
4. The Stop Loss will go just below the next level below the current price.

 

BUY (Long) Example 2:

1. The 2ColorMA must be yellow.
2. The price on the chart must touch a few pips above the closest level.
3. The Take Profit will be just below the next level above the current price.
4. The Stop Loss will go just below the next level below the current price.

 

SELL (Short) Example 1:

1. The 2ColorMA must be red.
2. The price on the chart must touch a few pips below the closest level.
3. The Take Profit will be just above the next level below the current price.
4. The Stop Loss will go just above the next level above the current price.

 

SELL (Short) Example 2:

1. The 2ColorMA must be red.
2. The price on the chart must touch a few pips below the closest level.
3. The Take Profit will be just above the next level below the current price.
4. The Stop Loss will go just above the next level above the current price.

The Levelator will draw levels automatically based on the last 100 candles. You can change this in the properties window.

You can also have the Levelator automatically update itself for each new candle. This too can be set in the properties box. The auto-update feature is turned off by default.

To get to the properties box, first, you need to open the Indicators List box. To do this, press Ctrl-I on your keyboard, or right-click on your chart and click the Indicators List option. Either way will open your indicators list box.

Chose Levelator and click Edit.

Under the Inputs tab, you will see the Bars Back setting. This is the Levelator look-back number. The default is set to 100 bars, but you can change that to anything you like.

The Levelator will look for the highest high and the lowest low within the last 100 candles unless you change that number.

Next, the AutoUpdateMainLine is set to false by default. If you set it to true, the Levelator will automatically adjust itself for every new bar that is created.

With the AutoUpdateMainLine setting remaining on false, you can manually adjust the Levelator to the highs and lows that you deem more appropriate.

Double-click on the diagonal Levelator line to select it. When the Levelator is blue, the diagonal line will be red. When the Levelator is orange, the diagonal like will be blue.

Once the line is selected, you will see a small box on the top, the bottom and in the middle of the line.

 

Now that the line is selected, you can drag the top and the bottom to the new levels you prefer.

That’s all there is to it.

This is a nice little system with very defined entry and exit rules. Try it out, it has about a 60% – 70% win ratio if you are trading with the direction of the trend as determined by the 2ColorMA.

The manual features of the Levelator indicator can have you trading the levels you see fit, this aspect of the system is very customizable and will allow you to trade your way.

so far so good 70% success rate, impressive 🙂
Best of luck to you!

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