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Forex & Stock – MTF Key Levels Trading Strategy

If you’re having trouble being a successful trader and looking for a trading setup that can help you stand out in the market, you’re in the right place. Today, we’re going to reveal awesome ways to enter trades using price action. These techniques will really boost your trading account from the start. So, let’s get started right away!

Trading NOTES


Supply & Demand Zones

So, let’s understand what a supply and demand zone is.

  • A supply zone refers to an area located above where the price has repeatedly failed to break through and has been rejected multiple times.

From a price action perspective, the market perceives this area as expensive, leading buyers to close their long positions and sellers to open their short positions.

The combined effect of these actions is what triggers the price to reverse from the supply area.

  • A demand zone is like a special area below the price where it’s hard for the price to go down. It’s like a place where the price keeps bouncing back up whenever it tries to go lower.

When the price is in this area, traders see it as a good deal because it’s like buying something at a low price. This makes the sellers stop selling and the buyers start buying.

All these actions together make the price turn around and go up again from the demand area.

These levels are considered as turning points.

Multi Time Frame Key Level Zones

let’s discuss higher time frame key levels.

Many of the key levels you come across on lower time frames may not be visible when using daily, weekly, or monthly time frames.

However, the visually obvious levels on higher time frames hold significant importance. These higher time frame key levels are of very high quality, as price often reacts strongly to them. Even a minor reaction can lead to a major reversal on lower time frames.

  • Monthly time frame chart

In this example, we are looking at a monthly time frame, and these visible levels are what we call monthly areas.

Now, although we don’t trade directly on higher time frames, here’s a technique you can employ in your analysis.

Label the closest levels in front of the current price as monthly levels. By identifying and paying attention to these significant monthly levels, you can enhance your trading analysis and decision-making process.

  • Daily time frame chart

Based on the Monthly Key levels, we will analyze price action on the daily time frame chart. Here, after a false breakout, the price rises and forms a higher low and higher high. This indicates that the price is likely to continue rising in line with the monthly trend.

The best place to enter a BUY position is after a pullback. Here, we observe the formation of a Bullish Engulfing pattern at a higher low position. This indicates that the pullback is likely coming to an end.

What you should do is open a BUY position above the Bullish Engulfing Candle. Place your stop loss below the swing low. Since the basis for this position is the monthly key level, the potential profit you can gain is significantly higher compared to the risk you take on.

Auto Key Levels Indicator

You can perform all of these analyses manually.

As a powerful tool that greatly aids and speeds up your work in finding the best trading opportunities in all markets, you can utilize an indicator.

Using indicator, you’ll be able to easily, quickly, and accurately identify markets that are currently at key level areas, allowing for further analysis of price action on smaller time frames to make decisions for opening positions.

By using this indicator, you won’t struggle anymore to find the best market to enter on any given day. As illustrated in example above, I always choose markets where the support and resistance areas are clearly formed for me to trade.

With the help of the auto support and resistance indicator, this task becomes remarkably easy and fast, even if you have to analyze hundreds or even thousands of stocks every day. It has been proven that this tool is incredibly powerful and effective in improving the accuracy of your trading.

How to install the “TraderVersity Key Level System
  • Download “TraderVersity-KeyLevelSystem” (Zip/RAR File).
  • Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
  • Copy the “TraderVersity-KeyLevelSystem.tpl” file (template) to your Metatrader Directory …/templates /
  • Start or restart your Metatrader Client.
  • Select Chart and Timeframe where you want to test your forex system.
  • Right-click on your trading chart and hover on “Template”.
  • Move right to select “TraderVersity-KeyLevelSystem” trading system and strategy.
  • You will see the “TraderVersity Key Level System” system is available on your Chart.

Remember, these trading setups can be applied across various time frames and markets. However, it’s essential to conduct your own backtesting to determine which pairs are most suitable for these strategies.


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