What is key level trading
I this post, I will talk how I find key levels in trading. I observe chart and mark the zone where most of price reversal happened in history. This is for me major key level on chart. I use Advanced Technical analysis tool to draw rectangle and place price alert. I have 3 different alerts to place: price touch alert, engulf or break alert and candle close alert. When alert is triggered then metatrader terminal sends me mobile push notification on my mobile phone. If I have time then I check chart for possible price actin and I place advanced order with Order management MT4 MT5.
On the picture below, I demonstrate how to draw rectangle key level zone and then place price alerts. Second, I draw support resistance flip lines and also place price alerts. I use key levels to look for market entry and support resistance level for trade target.
How to trade forex key levels
When I was starting with trading, I was learning to read market from charts. Important is to start looking for places where price reverse and try to find repeating behavior or pattern on chart. I found out that forex key levels are best palaces to look for entering position. The problem was that I was never there when price hit these levels. This is why I created trading tools to send me alerts and then I am able to approach trading charts to watch for price action happening. Without price alerts, I spent too much time behind charts waiting for some trades. This was the reason for my over trading and bad trading results. When I started using trading tools for price alerts, chart analysis and placing advanced smart orders, my odds for winning market was significantly improved.
Below, I recorded video, where I show how to draw forex key levels on chart with trading tools.
Key levels in forex
Price usually reverse inside forex key levels where most trading activity is made like opening new positions, closing trades, take profit targets and adding more orders to wining positions. If such important key level in market is engulfed or broken, then I found out that it can be a great place to enter position when price return to this level in correction. For example, we have strong demand key level and price go straight trough this level. Then This demand level become supply level because of supply demand flip theory in the market. Anyway, this new formed supply level is for me new ley level in trading where I will look for sell price action to enter sell position.
In other scenario, this demand key level will hold price and if I price action will happen there, then I will get option to enter a market with advanced virtual order. On picture below, I marked fresh supply level above Quasimodo zone. I also marked fresh demand level where I expect some price action there. In between I marked engulfed or broken demand levels where market trend was not reversed from. On each of this key level in forex I placed price alerts on rectangles and trendlines.
Tools for technical analysis in MT4 MT5
Trading box tool for technical analysis offers me easy, fast, simple and efficient work with chart analysis. In video below, I demonstrated how is possible to draw key level zone and place price alert with just one mouse click. You can try demo free version fully on AUDCAD and CHFJPY to see how this tool works. This tool have much much more options to help trader find and mark key levels in trading.
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