Master Levelator trending strategy: defining trading zones
Master Levelator trading strategy is a trending system, using the author's Levelator indicator, which determines the key levels that lie between the extremes of the chart.
Parameters of the Master Levelator strategy
- Currency pairs: any
- Timeframe: any
- Used indicators: 2ColorMA, Levelator.
- Bidding time: 24/7
- Type of strategy: trending
Explanation of the indicators
- 2ColorMA indicator is a trend indicator and is colored red or yellow, depending on the downward or upward price movement, respectively. If the 2ColorMA indicator is red - we consider selling, if yellow - buying.
- Levelator indicator allows you to determine the levels of entry into the position stop loss and Take Profit. It determines the price minimum and maximum for 100 candles (default setting) and connects them. The sell zone is highlighted in blue and the buy zone in yellow. Between the minimum and maximum, the Levelator indicator identifies up to six key zones (levels).
Applying the Master Levelator strategy
Entering a long position:
- the 2ColorMA indicator should be yellow;
- The price must cross the border of one of the zones;
- Take Profit is set at the level of the beginning of the next zone;
- stop-loss is set at the level of the beginning of the previous zone.
Entering a short position:
- the 2ColorMA indicator should be red;
- The price must cross the border of one of the zones;
- Take Profit is set at the level of the beginning of the next zone;
- stop-loss is set at the level of the beginning of the previous zone.
ForTrader.org experts note that the trader can adjust the Levelator indicator - change the number of candles between the minimum and maximum, as well as update the current bars, which is disabled by default.
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